In January 2026, the world of Amazon selling is confronting a wave of structural changes that go well beyond the usual seasonal churn. For third‑party merchants, the return to non‑peak fulfillment fee rates on January 15 brought with it an average per‑unit cost increase — forcing rapid reassessments of pricing models and inventory strategies. At the same time, Amazon’s long‑announced elimination of Fulfillment by Amazon (FBA) prep and labeling services on January 1 has transitioned from theory to enforcement with non‑compliant inbound shipments already being rejected or penalized. With tariff and supplier cost dynamics in flux and new technology tools like agentic AI entering the ecosystem, sellers are adjusting not only margins but entire operating systems to stay competitive.
These developments are more than incremental updates; they indicate a recalibration of risks and opportunities for independent sellers, brand owners, and logistics partners within Amazon’s mammoth marketplace. In setting the stage for what’s ahead, this article unpacks the granular details of fee changes, compliance challenges, tariff realities and the AI‑enhanced tools promising to help sellers adapt. Collectively, they frame a pivotal moment for e‑commerce entrepreneurs whose profitability and growth strategies hinge on their ability to interpret and act on these shifts.
FBA Fee Changes: New Economics, Old Pressures
When Amazon transitioned back to non‑peak FBA fulfillment rates on January 15 2026, the adjustment was notable: fulfillment fees increased by an average of $0.08 per unit across most size tiers. Sellers must absorb or pass along these costs, which squeeze profit margins especially on slim‑margin or high‑volume products.
Even modest per‑unit increases compound quickly at scale. For example, a seller moving 1,000 units per month with a $0.08 rise faces an additional $80 in monthly fulfillment fees — a non‑trivial increase when margins are already tight. Moreover, a new Low SKU‑level inventory fee structure means sellers can incur charges on specific variations where stock is low, even if broader inventory levels appear sufficient.
These changes highlight how Amazon continues to tilt fulfillment economics toward cost transparency and operational efficiency — but at a cost to sellers who lack the flexibility of large brands. For seasoned FBA merchants, the lesson is clear: fine‑tuning price strategies and reclaiming internal cost controls have become essential for maintaining competitiveness.
Discontinued Prep & Labeling: Compliance Becomes a Seller Burden
One of the most disruptive developments took effect at the very start of 2026: Amazon permanently ended all FBA prep and item labeling services for U.S. inbound shipments on January 1.
Previously, sellers could opt into Amazon’s prep services — including barcode labeling, poly‑bagging, bubble‑wrapping, and other packaging work — for an added fee. That safety net is gone. All units now must arrive at fulfillment centers fully compliant, or risk shipment rejection, costly inbound defect fees, or lost reimbursement opportunities.
This change forces many sellers — particularly smaller operations and those relying on Amazon’s convenience services — to reevaluate their supply chains. Companies must either internalize prep processes, use third‑party logistics (3PL) partners, or renegotiate supplier contracts to ensure products leave factories already compliant with FBA specifications. Failure to adapt yields both financial penalties and inventory delays.
Prep & Labeling Compliance: Before vs. After
| Element | Before Jan 1, 2026 | After Jan 1, 2026 | Impact |
| Amazon Prep Services | Available | Discontinued | Sellers must self‑prep or use 3PLs |
| Label Ownership | Amazon or Seller | Seller only | Zero tolerance for non‑compliant units |
| Reimbursements | Possible for damaged/unlabeled | Not eligible | Higher financial risk |
| Shipment Acceptance Risk | Lower | Higher | Increased need for quality control |
This shift significantly increases the operational complexity of selling on Amazon and elevates the importance of pre‑fulfillment quality assurance systems.
Tariff Shifts and Supplier Negotiations: A New Cost Landscape
Alongside fulfillment and compliance updates, Amazon sellers are facing evolving tariff and supplier cost pressures. After years of tariff escalations affecting imports from China, including the suspension of the de minimis exemption and Section 301 duties, recent diplomatic developments have eased some expense volatility. As of early 2026, effective duties on many Chinese‑origin goods have stabilized around more manageable 20–30 percent ranges following trade truce agreements and targeted tariff reductions.
In response to this wider tariff environment, Amazon has begun pushing suppliers to accept price concessions to reflect lower import costs and maintain competitive pricing for marketplace goods. Major negotiations reportedly include requests for discounts ranging from single‑digit percentages up to 30 percent.
Tariff Landscape for Amazon Sellers (2025–2026)
| Tariff Event | Effective Period | Impact |
| De minimis exemption ended | May 2025 onward | All shipments incur duties |
| Section 301 tariffs | Ongoing with reductions | 20–30 % effective tariffs |
| Recent tariff rollback negotiations | Jan 2026 | Opportunity for price adjustments |
For private label sellers and import‑dependent resellers, these shifts necessitate immediate renegotiation of supplier contracts, deeper analysis of landed costs, and potentially a redesign of sourcing strategies to preserve margins.
AI and Tools: The Seller Assistant Revolution
While policy and cost changes tighten the operating environment, Amazon is also rolling out technological innovations intended to help sellers adapt. Chief among these is the transformation of Seller Assistant into an agentic AI‑driven tool powered by Amazon Bedrock, Nova foundation models, and Anthropic Claude.
This enhanced Seller Assistant goes beyond traditional, reactive support. It proactively monitors account health, flags compliance issues, suggests inventory and pricing adjustments, and can execute strategic actions with seller approval, effectively becoming an always‑on digital partner.
Among its touted features are real‑time inventory optimization, automated compliance navigation, and advanced advertising support through integrated Creative Studio tools — all designed to reduce the manual workload for sellers and help them react more swiftly to market changes.
Expert Quote:
“Agentic AI represents a fundamental shift in Amazon seller tools. Instead of responding to queries, it anticipates needs and acts, helping sellers manage complexity at scale.” — E‑commerce analyst Lauren Fisher.
This technological evolution offers Amazon Seller News a counterbalance to some of the 2026 challenges — empowering sellers with data‑driven insights and automation that would have been prohibitively expensive just a few years ago.
Transition Challenges: Small Sellers’ Pain Points
For smaller Amazon sellers, the January 2026 changes have brought acute operational pain. Without Amazon’s prep services, compliance missteps have led to shipment rejections and non‑reimbursable losses, making every inbound error costlier than ever. Furthermore, the incremental fee increases — while modest per unit — aggregate into significant Amazon Seller News expense burdens for medium‑volume accounts.
Expert Quote:
“The cumulative effect of these policy shifts has tightened margins and forced sellers to rethink fundamental aspects of their business models.” — Marketplace consultant David Liu.
Smaller brands, in particular, face a steep learning curve as they integrate new logistics partners, internalize FBA prep responsibilities, and invest in AI‑driven tools to manage compliance and pricing Amazon Seller News complexities.
Strategic Responses: What Sellers Are Doing Now
Across the seller community, adaptive strategies are emerging:
- Hybrid Fulfillment Models: Many are supplementing FBA with third‑party fulfillment and direct merchant fulfillment (FBM) to diversify risk and reduce dependence on Amazon’s tightening policies.
- 3PL Partnerships: Outsourcing prep and labeling to specialized logistics providers helps avoid inbound defects and delays.
- Margin Recalibration: Sellers are repricing listings and refining product portfolios to offset cost increases without alienating price‑sensitive customers.
- AI Adoption: Leveraging tools like the agentic Seller Assistant helps automate routine tasks, improving efficiency.
These adaptations reflect sellers’ resilience and the marketplace’s competitive dynamics.
Takeaways
- Fulfillment fee increases in January 2026 are pressuring margins, especially for high‑volume sellers.
- Amazon’s discontinuation of FBA prep services has shifted compliance risk and operational burden back onto sellers.
- Tariff changes and supplier negotiations are redefining cost structures, especially for imports.
- Agentic AI tools like Seller Assistant offer proactive support for inventory, compliance, and pricing.
- Smaller sellers face heightened risk and must adopt new workflows and partnerships.
- Strategic diversification of fulfillment and pricing models is becoming essential.
Conclusion
January 2026 marks a pivotal chapter in the evolution of Amazon’s marketplace — one that demands a new level of agility, strategic thinking, and technological fluency from sellers large and small. Fee increases and the end of prep services are not isolated policy tweaks; they represent a broader shift toward greater seller accountability and operational visibility. In parallel, emerging AI tools and tariff developments offer both risks and opportunities that will reward those who adapt quickly and intelligently. Ultimately, success in this transformed landscape will depend on sellers’ ability to balance cost pressures with customer value, leverage automation where it counts, and build flexible supply chains that can thrive amid Amazon Seller News relentless pace of change.
FAQs
What are the new Amazon FBA fee changes for 2026?
Amazon raised fulfillment fees by about $0.08 per unit effective January 15, 2026, among other fee adjustments that impact profit margins.
When did Amazon end FBA prep and labeling services?
Amazon discontinued all FBA prep and item labeling services in the U.S. on January 1, 2026.
How do tariff changes affect Amazon sellers?
Tariff reductions and trade negotiations have stabilized some import costs, but sellers still face duties and must renegotiate supplier pricing due to past tariff volatility.
What is agentic AI in Amazon Seller Assistant?
Agentic AI refers to enhanced AI tools that anticipate seller needs, optimize inventory, and execute actions with approval, powered by Amazon Bedrock and models like Claude.
How can sellers adapt to these 2026 changes?
Sellers are adopting hybrid fulfillment, outsourcing prep tasks, recalibrating pricing, and using AI tools to manage compliance and operational complexity.
References
- Amazon. (2025, September 17). Amazon introduces agentic AI across the seller experience. About Amazon News. https://www.aboutamazon.com/news/innovation-at-amazon/seller-assistant-agentic-ai
- Amazon. (2025, October 15). Update to U.S. referral and Fulfillment by Amazon fees for 2026. Selling Partners – About Amazon. https://sellingpartners.aboutamazon.com/update-to-u-s-referral-and-fulfillment-by-amazon-fees-for-2026
- eStore Factory. (n.d.). Amazon FBA fee changes: What sellers need to know. eStore Factory. https://www.estorefactory.com/insights/amazon-fba-fee-changes-sellers-need-know
- Steiner, I. (2025, July 28). Amazon FBA will no longer offer prep services. EcommerceBytes. https://www.ecommercebytes.com/2025/07/28/amazon-fba-will-no-longer-offer-prep-services/
- ChannelMax. (n.d.). Amazon announces 2026 fee changes for sellers: What you need to know. ChannelMax. https://www.channelmax.net/article/amazon-announces-2026-fee-changes-for-sellers-what-you-need-to-know-channelmax
