From 15 December 2025, Amazon is cutting FBA parcel fulfilment fees by an average of £0.26 across major EU marketplaces, including the UK. These savings come as Amazon continues to optimise its fulfilment network, enabling them to pass efficiencies directly back to sellers.

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Then, from 1 February 2026, Amazon will extend Low-Price FBA eligibility to products under £20, unlocking an average £0.45 saving per unit. This applies across most categories and is particularly impactful for high-volume, low-priced items.

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Referral Fee Reductions by Category

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Alongside fulfilment savings, Amazon is also reducing referral fees in several key categories:

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From 15 December 2025

  • Clothing & Accessories - cut from 8% to 5% for items priced up to £15, and from 15% to 10% for items priced £15 – £20

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From 1 February 2026

  • Home Products (new category) - cut 15% to 8% for items up to £20
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  • Pet Clothing & Pet Food - cut from 15% to 5% for items up to £10
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  • Grocery & Gourmet - cut from 8% to 5% for items up to £10
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  • Vitamins, Minerals & Supplements (VMS) (new category) - cut from 8% to 5% for items up to £10

Who Else Benefits?

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The expanded Low-Price FBA threshold (now up to and including items priced at £20) can drive major margin improvements in:

  • Beauty
  • Health & Personal Care
  • Household essentials
  • Pet supplies
  • Grocery
  • Clothing basics
  • Home & everyday goods
  • Small, fast-moving consumer products across most categories

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Collectively, these updates represent one of Amazon’s most seller-friendly cost reductions in years.

Time to Revisit Your Amazon Strategy?

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If you’re selling in any of the categories listed above, or you have products priced under £20, these 2026 fee reductions may open new doors for growth, profitability, or even a return to Amazon if margins previously felt too tight.

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Now is the perfect time to rethink your Amazon strategy for 2026. Reach out to our marketplaces team for a free audit to see how you can capitalise on these fee reductions. Whether that’s unlocking extra margin, boosting growth with smarter advertising, or optimising your pricing strategy.