Anyone else feeling the squeeze from Amazon’s rising and ever-changing fees lately?

Between the new low-inventory fees, inbound shipping costs, placement fees, and now the peak season fulfillment charges — it’s getting harder to keep profit margins healthy. Many sellers are saying these added costs are forcing them to rethink inventory strategies, product pricing, and even fulfillment options.

How are you adapting to these new fee structures? Have you found any effective ways to manage or offset the impact?

Will be grateful for some insights.

Thanks!

The recent fee changes from Amazon are definitely a challenge for sellers. One area that’s helped me a lot is using AI in my sourcing process. AI tools can analyze thousands of suppliers and products in minutes, something that would take a human weeks to do.

This has helped me find products with better margins, and it’s over 80% cheaper than traditional sourcing methods. It also allows for much faster scaling.

The best way to adapt is by tightening your inventory control and optimizing your logistics mix. Many sellers are sending smaller, more frequent replenishments to avoid low-inventory fees and storage surcharges, using 3PLs or prep centers as staging hubs to store bulk inventory cheaply and drip-feed to FBA as needed.

Others are bundling products or slightly increasing prices to absorb part of the added cost while keeping perceived value high. If you have SKUs with slower turnover, consider switching them to FBM or a hybrid FBA/FBM setup during peak season to avoid expensive FBA storage. It’s also worth revisiting your packaging and carton configurations, lowering dimensional weight can make a surprising difference in both inbound and fulfillment fees.

Lastly, using Amazon’s AWD (Warehousing and Distribution) program or negotiating bulk freight rates with carriers can help offset placement and shipping fees. It’s all about building flexibility into your logistics chain now — the days of sending huge shipments and letting Amazon handle everything cheaply are pretty much over.