Amazon Marketplace Update: FBA Prep Services and FBM Refunds (Updated: Jan 22, 2026)
Amazon–ի 2026 operational updates are already changing how sellers manage inbound inventory and returns. Two confirmed changes around FBA prep and FBM refunds will shape day-to-day execution for U.S. brands.
FBA prep and labeling services discontinued in the U.S.
Starting January 1, 2026, Amazon no longer offers FBA prep and item labeling services for U.S. shipments. All units must arrive at fulfillment centers fully prepped, labeled, and compliant before check-in.
Seller impact: There is no longer a paid safety net if prep is missed or incomplete. Shipments that arrive without proper preparation are more likely to experience delays, additional handling, or disposal.
Recommended actions:
- Define clear SKU-level prep requirements (labeling, poly-bagging, bundling, protective packaging)
- Bake prep checklists into POs, supplier instructions, and 3PL SOPs
- Add lead time for inspection and prep ahead of major events like Prime, Peak, and Q4
FBM refund window extends to four calendar days
Effective January 26, 2026, Amazon is extending the refund processing window for seller-fulfilled (FBM) orders from two business days to four calendar days. Sellers get more time to inspect returns before issuing refunds — but with tighter rules around SAFE-T reimbursement if Amazon auto-refunds the buyer.
Seller impact: You gain a bigger inspection window, but you must process returns on time. If Amazon issues an automatic refund after day four, SAFE-T recovery is limited to narrow edge cases.
Recommended actions:
- Set up a 24–48 hour triage process for FBM returns so items are graded quickly
- Use the Guided Refund workflow consistently to document condition and restocking fees
- Flag high-risk SKUs for closer review (high ASP, fragile items, categories with frequent abuse)
January 2026 operational takeaway
Both changes push more responsibility onto sellers for prep and returns. Teams that standardize workflows now — with clear checklists, SLAs, and ownership — will protect margins and avoid unnecessary disruption as the rest of 2026 policy updates roll out.
Amazon Marketplace Update: Inventory, Account Health, and Ads (Updated: Jan 7, 2026)
Amazon opened 2026 without announcing new broad fee hikes, but early January signals point to tighter operational enforcement across inventory management, Account Health, and advertising efficiency. These shifts suggest that Amazon is prioritizing consistency and execution quality as core performance signals entering Q1.
Inventory efficiency under closer review
Following peak season, Amazon has increased its focus on inventory efficiency and sell-through rates. Sellers carrying excess holiday stock are being guided toward earlier repricing, removals, and liquidation options, as Amazon works to rebalance fulfillment center capacity early in the year.
Seller impact: Brands entering Q1 with unoptimized inventory may face higher operational costs, reduced flexibility in restocking, and increased pressure later in the quarter as storage-related fees compound.
Recommended actions:
- Review aging and stranded inventory
- Address listing issues blocking inbound shipments
- Reforecast replenishment plans based on updated sell-through data
Account Health enforcement remains a priority
Amazon has not relaxed Account Health standards for the new year. Sellers with unresolved performance notifications or policy warnings are seeing continued scrutiny, particularly around late shipment rates, tracking validity, and recurring compliance issues.
Seller impact: Accounts operating near minimum performance thresholds remain at higher risk of escalated enforcement if issues are not resolved promptly.
Recommended actions:
- Resolve all open Account Health notifications
- Document corrective actions to prevent repeat violations
- Monitor core metrics on a weekly basis during Q1
Advertising performance favors efficiency over spend
Early January advertising data shows CPC volatility across competitive categories as brands adjust budgets. Amazon continues to prioritize listings with strong historical conversion rates, fulfillment reliability, and consistent shopper engagement signals over higher bid levels alone.
Seller impact: Inefficient campaigns may see rising costs without proportional sales growth if listings and targeting are not optimized.
Recommended actions:
- Pause or refine underperforming search terms and targeting
- Reallocate spend toward proven, high-intent keywords
- Ensure listings are conversion-ready before scaling budgets
Q1 takeaway: operational discipline sets the pace for 2026
Rather than introducing major policy shifts, Amazon appears focused on reinforcing baseline execution standards. Sellers who use January to clean up inventory, stabilize Account Health, and refine advertising strategy are positioned to regain momentum earlier in the year.
January 2026 Action Summary
- Audit FBA inventory for aging, stranded, or low sell-through SKUs
- Resolve outstanding Account Health warnings and performance risks
- Review advertising efficiency before increasing spend
- Reassess low-margin SKUs affected by 2026 fee structures
Amazon Marketplace 2026 Fees & Account Health (Updated: Dec 11, 2025)
2026 U.S. FBA and referral fees: Small average increase, bigger impact on margins
On October 15, 2025, Amazon announced its 2026 U.S. referral and Fulfillment by Amazon (FBA) fee updates. FBA fees will rise by an average of $0.08 per unit in 2026, which Amazon positions as less than 0.5% of an average item’s selling price. This follows a whole year with no increases to U.S. referral or FBA fees in 2025, so the company is framing 2026 as a “modest reset” rather than a full-scale hike.
Behind the scenes, Amazon is moving toward a more granular fee structure: lower fees where its own costs are lower, and higher fees where services are more complex or resource-intensive. The company has also recommitted to giving sellers at least 90 days’ notice before future fee changes take effect, which is why these 2026 updates are being surfaced now for mid-January.
For sellers, this isn’t a “panic” moment, but it is a recalculation moment. Re-run your margin models with the extra $0.08 baked in, check the impact on low-margin SKUs, and use Amazon’s updated revenue and fee preview tools with 2026 rates selected before you finalize 2026 pricing.
Europe’s 2026 fee changes: One of Amazon’s largest fee reductions
On December 2, 2025, Amazon announced one of its largest-ever fee reductions for European marketplaces. For 2026, Amazon will lower fees by an average of £0.15/€0.17 per unit sold across Europe, driven mainly by FBA and referral fee cuts.
Key highlights for EU/UK sellers:
- FBA fulfillment fees for parcels in the UK, Germany, France, Italy, and Spain will drop by an average of £0.26/€0.32 per unit starting December 15, 2025.
- Referral fees for Clothing & Accessories will be reduced (for example, from 8% to 5% for items up to £15/€15 and from 15% to 10% for items between £15/€15 and £20/€20).
- From February 1, 2026, referral fees also fall in Home products, Grocery, Pet clothing and food, and Vitamins / Supplements, and Low-price FBA rates are extended to products priced at or below £20/€20.
- Caps on variable fees for Best Deals, Lightning Deals, and coupons are lowered to make promotions more cost-effective.
There will still be selective increases to items such as monthly storage, return-to-seller, and liquidation fees. Still, Amazon says the net effect is an average increase of just £0.02/€0.02 per FBA unit after all changes are combined. For brands selling in both North America and Europe, this creates an interesting split: modestly higher costs in the U.S., but new savings opportunities in EU stores.
Account health stays in the spotlight: new guidance for 2026 prep
On December 3, 2025, Amazon published fresh guidance on how to monitor and protect your Account Health Rating (AHR). The Account Health page in Seller Central now remains the primary place where sellers can track their 0–1,000 AHR score, policy violations, and key performance metrics. A score of 200 or above is considered healthy, while scores below 200 push accounts into at-risk or deactivation territory.
Amazon is also highlighting that maintaining a rating above 250 for six months can qualify sellers for the Account Health Assurance program, which gives more time to resolve issues and offers proactive support from Account Health specialists. On the metric side, Amazon is reiterating thresholds such as Order Defect Rate under 1%, on-time delivery rate of at least 90%, valid tracking rate of 95%+, and late shipment rate below 4% as non-negotiables for long-term stability.
For sellers following Amazon marketplace news today, the message is clear: your fee structure and your account health are now tightly connected to long-term profitability. Building a monthly ritual around checking the Account Health page, resolving any policy flags, and documenting your processes is just as important as tracking ACoS or TACoS.
Expert Commentary: Strategic Reset, Not a Shockwave
What we’re seeing from Amazon heading into 2026 is less of a fee hike and more of a strategic reset. The U.S. increases are minor on paper, but sellers absolutely need to re-model their margins—especially lower-priced goods where eight cents can erase already thin contribution margins.
On the other hand, Europe is giving sellers one of the most meaningful fee reductions we’ve seen in years. That split opens up real opportunities for brands willing to diversify internationally.
My advice? Treat this as a planning moment, not a panic moment. Update your forecasts, pressure-test your SKUs, and make Account Health a monthly ritual. The brands that get ahead of these changes now will win the first half of 2026.— Peter Sims
2025 Amazon Marketplace Updates Sellers Need to Know
Amazon Marketplace news today highlights a wave of 2025 updates that will reshape how sellers operate. Beginning May 29, 2025, all product and food safety compliance details will move from the Manage Your Compliance dashboard to the new Policy Compliance section — a centralized hub designed to simplify regulatory management.
Starting June 12, 2025, Amazon will also adjust Partnered Carrier Program fees for domestic U.S. shipments when the package dimensions or weights don’t match the carrier’s records. Meanwhile, FBA fees for apparel and bag categories will decrease under the new size-based pricing model rolling out May 15, 2025. These announcements are part of the broader Amazon marketplace news today cycle that continues to shape seller strategy this year.
The company is expanding its U.S. workforce ahead of the holiday season, creating 250,000 jobs nationwide with an average pay of $23 per hour for regular employees and $19 per hour for seasonal staff.
These updates reflect Amazon’s ongoing effort to streamline compliance, optimize fulfillment costs, and stabilize the marketplace amid rapid policy evolution. This guide from Velocity Sellers breaks down every 2025 change — showing how optimized Amazon listings and more innovative compliance management can help sellers prepare for Q4 success.
Major Amazon Announcements and Updates in 2025
Amazon made an unexpected announcement about its 2025 fiscal year plans. According to Amazon Marketplace news today, these fiscal changes are part of a broader effort to balance seller profitability with platform stability. The company will keep the US referral and FBA fees unchanged while reducing costs for specific categories. This decision shows Amazon’s commitment to helping sellers stay stable during economic changes.
New fee models for apparel, bags, and oversized items
The 2025 fee structure remains stable for most sellers. Non-peak fulfillment fees for apparel items will stay the same starting January 15, 2025. Peak fulfillment fees will take effect from October 15, 2025, through January 14, 2026, with specific increases across size tiers. Amazon reduced inbound placement service fees by $0.58 per unit on average for large, bulky items with minimal shipment splits. The company also removed inbound placement service fees for new parent ASINs that qualify for the FBA New Selection Program in shipments created between December 1, 2024, and March 31, 2025.
Policy shifts in Seller Central and Account Health
Amazon tightened its Account Health enforcement in 2025 by expanding its Account Health Rating and Account Health Assurance programs. The current system requires sellers to keep a score above 200 to stay healthy, while lower scores might lead to suspension. Amazon also rolled out new EU mediation policies with specific timelines. Sellers must submit appeals within six months of the issue and file mediation requests within six months of the appeal outcome.
Velocity Sellers Insight:
- At Velocity Sellers, we’re advising brands to take a proactive approach—review every fee category, compliance policy, and Account Health metric now. As seen in Amazon marketplace news today, the 2025 updates are designed to tighten enforcement, so sellers who adapt early will protect profitability and avoid disruption when the changes roll out.
- The biggest mistake we see is sellers waiting until Amazon flags an issue before they act. By the time a warning hits your dashboard, it’s often too late to prevent lost sales or suspended listings. Staying reactive instead of strategic is what separates struggling accounts from high-performing ones.
- Our best tip: run a quick “Amazon policy audit” each month. Check new announcements, confirm listings meet every requirement, and ensure documentation is current. A half hour of diligence now can save weeks of downtime later.
Launch of Virtual Multipacks and Image Manager
Amazon’s Virtual Multipacks pilot program starts officially in October 2025. This program lets sellers offer multiple units of the same ASIN as a bundled listing. Each virtual multipack gets its own ASIN and SKU (prefixed with ‘VMP_’) that shows up as a variation on the original single-pack detail page. The new Image Manager tool helps sellers search live images, track submissions, and upload country-specific visuals directly through Seller Central.
AI-driven restock and ad tools
Amazon revealed new AI tools that streamline marketplace management tasks. These tools offer:
- Real-time inventory monitoring with restock suggestions
- Early detection of compliance and account health issues
- Smart demand forecasting with pricing and promotion tips
- Shipment preparation and scheduling that needs seller approval
The system makes use of Amazon’s Nova AI foundation model and Anthropic’s Claude 4. It creates custom recommendations based on shopping patterns and successful seller strategies.
How These Changes Affect Your Amazon Business
Amazon’s 2025 changes go beyond simple feature updates. These changes are transforming how sellers make money on the platform. Sellers need to adapt their strategies to stay profitable and competitive. Many of these trends were first covered in Amazon Marketplace News Today, underscoring how quickly the platform’s policies evolve.
Smart sellers rely on Amazon market research to anticipate these shifts early, using data to predict fee impact, product demand, and Q4 performance before new policies take effect.
Cost structure and profitability shifts
Amazon hasn’t raised its standard FBA and referral fees in 2025, which gives sellers some breathing room for budget planning. But new fee structures bring hidden challenges to profitability. The low-inventory level fee now costs between $0.32 and $1.11 per unit when supply drops below 28 days. Sellers face a tough balancing act. They need enough inventory to dodge these penalties while avoiding excess stock that triggers storage charges after 26 weeks.
Fulfillment and shipping strategy adjustments
The platform has cut FBA storage capacity limits from 6 months to 5 months of forecasted sales in 2025. ASIN-level restock limits are back, too, which makes inventory planning more complex. The Seller Fulfilled Prime program now checks eligibility weekly instead of monthly. Sellers must maintain a 93.5% on-time delivery rate. Third-party logistics providers might be the answer for extra inventory that won’t affect FBA limits.
Listing and brand visibility challenges
External traffic boosts marketplace performance by a lot. Listings with outside visitors see up to 25% better conversion rates. Yes, Amazon’s A10 algorithm indeed favors listings that show external demand signals and branded search terms. Mobile optimization plays a vital role in listing visibility. Phone users generate more than half of Amazon’s traffic.
Compliance and account health management
The Account Health Rating system has gotten stricter in 2025. Scores under 200 on the 0-1000 scale put selling privileges at immediate risk. Safety documentation requirements have become more stringent in many categories. New product listings need approved compliance documents before going live, starting September 30, 2024. Regular checks of the Account Health dashboard and quick fixes to policy violations are essential to protect selling privileges.
Prime Day 2025 and Seasonal Trends
If you’ve been following Amazon marketplace news today, you already know Prime Day 2025 broke all previous sales records. Amazon ran the event for four days this time and saw a 35% year-over-year increase in sales compared to the two-day format in 2024. Despite that, shoppers spread their purchases more evenly across the extended timeline.
Prime Day 2025 performance insights
The first day brought in 36% of total sales. Days 2, 3, and 4 followed with 21%, 20%, and 23% respectively. The event didn’t see the usual sharp spikes but generated much higher total revenue. Baby, Electronics, and Beauty led the pack as top sellers. Most shopping happened between 12 am – 7 am, and picked up again from 8 pm – 10 pm.
What worked in promotions and advertising
Smart advertisers who combined Sponsored Products, Sponsored Brands, and Sponsored Display saw their sales jump by 139% compared to average category growth. Brands that put 20% of their budget into DSP, up from 8% in 2024, saw better returns. Products with both deals and active advertising sold 12 times as much as those with just deals but no advertising.
Use Prime Big Deal Days as a launchpad into Q4—treat it as a soft run to build reference price and momentum, so you hit Black Friday–Cyber Monday with stronger indexing and cleaner operations. – Eric Peterson, Director of Brand Onboarding at Velocity Sellers
Preparing for Black Friday and Cyber Monday
Black Friday lands on November 28th, 2025, and Cyber Monday follows on December 1st. The deadlines matter – October 7th is the last day to submit Black Friday/Cyber Monday deals. Lightning Deals and Best Deals need to go in by October 28th. Brands should know that 82% of customers research their purchases before these events.
Inventory and logistics planning for Q4
Amazon’s FBA deadlines are set: October 15th for apparel/fashion before Fall Prime events, and December 1st for general inventory. Getting inventory to fulfillment centers by November 1st helps ensure Black Friday readiness. Q4 makes up 30-40% of yearly Amazon sales, which makes inventory planning vital. The formula ROP = (Average Daily Sales × Lead Time) + Safety Stock helps prevent expensive stockouts.
Why Partnering with Velocity Sellers Helps Sellers Stay Ahead
The ever-changing world of Amazon demands specialized expertise that most sellers can’t find time to develop. Professional Amazon account management services have become vital to keep businesses profitable.
Expert Amazon account management
Professional account managers become part of your team and provide detailed support in key operational areas. These experts keep track of seller metrics, handle customer feedback, and make sure you follow Amazon’s policies, which prevents your account from getting suspended. Their deep knowledge helps you spot profitable niches and trends that lead to smart product line growth.
Advanced PPC and advertising strategy
Smart partners skip Amazon’s suggested bid ranges that often drive up costs without guaranteeing profits. They employ specific formulas like “Target ACoS x Product Price x Conversion Rate” to set the right starting bids. Brands working with experts see better ad results through dynamic bidding strategies that tweak bids based on time, device type, and shopper details.
Brand protection and compliance support
Amazon’s compliance rules have grown more complex over time. Expert partners help tackle these challenges by:
- Quickly answering compliance documentation requests with proper formatting
- Stopping listing suppressions through active compliance monitoring
- Writing well-laid-out, Amazon-ready appeals that speed up reinstatement
Real-time adaptation to Amazon updates
Amazon’s frequent policy changes make staying informed vital to avoid penalties and suspensions. Experienced partners watch these updates closely and adjust strategies right away to prevent problems while grabbing new opportunities.
Staying Ahead of Amazon Marketplace Changes
Amazon’s marketplace keeps shifting through new fees, policy updates, AI tools, and tighter account health rules—and none of these changes happen in isolation. Every update directly impacts pricing, inventory planning, advertising performance, and long-term profitability for sellers.
That’s where Velocity Sellers steps in. Our expert Amazon management team tracks every major marketplace update, helps brands anticipate policy shifts, fine-tune PPC campaigns, and protect their margins as the rules change. In a world where every Amazon update matters, proactive strategy isn’t a nice-to-have — it’s the only way to stay ahead.