- Fulfilment by Amazon (FBA) fees drop from late 2025
- Bigger savings on low-price items
- Referral fees cut in key categories
- Margins improve for UK sellers
- Pricing strategies need a rethink
Foreword
Foreword

Amazon has announced a major round of fee reductions for European sellers, aimed at helping SMEs improve profitability heading into 2026. With many brands and private-label sellers feeling the pressure on margins recently, these updates are a welcome shift.
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.
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.
Alongside fulfilment savings, Amazon is also reducing referral fees in several key categories:
From 15 December 2025
From 1 February 2026
The expanded Low-Price FBA threshold (now up to and including items priced at £20) can drive major margin improvements in:
Collectively, these updates represent one of Amazon’s most seller-friendly cost reductions in years.
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.
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.

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