In late 2024, Amazon announced a “fee freeze” for 2025, which got sellers excited and optimistic. But now that we’re well into 2025, has Amazon really kept things simple and affordable?
Not exactly. While some core fees stayed the same, Amazon quietly introduced new charges, adjusted storage policies, and added more conditions.
This left many sellers frustrated and looking for more control, especially over their margins. That’s why more brands are starting to build or scale their DTC operations, where costs are more predictable.
TLDR:
Amazon’s 2025 fee freeze only applies to a few core charges, while new and increased fees continue to impact seller margins. This article breaks down those changes and explains why building a DTC site offers more predictable and manageable costs for long-term profitability.
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What Amazon Fee Freeze Really Means
No Amazon FBA fee hikes! Sounds good, right?
But what is the truth behind the Amazon fee freeze? Well, it’s not what sellers hoped for.
The “freeze” mainly applied to a handful of core fees, like referral fees and some FBA outbound rates. But at the same time, Amazon rolled out new charges and adjusted policies that quietly increased seller costs elsewhere.
So while Amazon didn’t raise certain fees directly, they introduced new ones like inbound placement service fees, low-inventory-level fees, and stricter storage surcharges. For most sellers, total costs still went up, just under a different label.
Amazon Fees that Froze
When Amazon announced that it would freeze its fees, these were the ones they were referring to. These specific charges will not see an increase in 2025.
- Referral Fees
Amazon will not increase referral fees. These are the percentage-based commissions (typically 8%–15%) taken from each sale based on category. - FBA Fulfillment Fees (Standard Size)
The core pick, pack, and ship fees for standard-size items will remain the same. No base rate increases were applied to these outbound fulfillment costs. - Monthly Professional Selling Plan
The $39.99/month fee to maintain a Professional seller account is unchanged. This flat subscription fee gives access to key selling tools and account features. - Returns Processing Fee (Apparel & Shoes Only)
Amazon confirmed that return handling fees for apparel and shoes will stay frozen. Other categories may still see changes, but these two are excluded from fee hikes. - FBA Small and Light (Now Merged into Standard FBA)
While the Small and Light program ended, its pricing merged into the standard FBA rate structure without a fee increase. Items previously enrolled are now billed under the standard FBA fees, which are frozen.
Amazon Fees That Changed
Even with Amazon’s fee freeze announcement, not all charges were included. These are the fees that changed in ways that cost sellers more in 2025, either through price hikes or tighter enforcement.
- Aged Inventory Surcharge
Amazon raised surcharge rates for units stored over 270 and 365 days. For example, inventory aged 271–365 days now costs $2.00 per cubic foot (up from $1.50), and over 365 days now costs $6.90 (up from $3.60).
- Monthly Storage Fee (Q4)
Q4 storage for standard-size items increased from $2.40 to $2.70 per cubic foot. Oversize rates also went up, cutting deeper into profits during peak season.
- Removal Fee (Standard Size)
Per-unit removal fees increased across all weight tiers. For example, items that cost $0.97–$2.32 in 2024 now cost $1.05–$2.89 in 2025.
- Returns Processing Fee (Electronics & Other Categories)
Rates increased in high-return categories like electronics. Average return handling fees went from around $2.12 to $2.50+ per unit, depending on size and product type.
- FBA Labeling Service
The cost for Amazon to apply labels increased from $0.30–$0.40 per unit to $0.40–$0.55. Sellers relying on this service are paying more per unit.
- FBA Prep Service
Amazon raised rates for poly bagging, bubble wrapping, and other prep tasks. Fees that used to cap at $2.20 per unit now reach $2.60+, especially for items flagged as high-touch or needing repackaging.
- Inbound Placement Service Fee
The per-unit fee didn’t increase (still $0.21 to $1.58), but Amazon expanded its use. More sellers are now required to pay this fee, with fewer options to avoid it by sending inventory to a single fulfillment center.
- Low-Inventory-Level Fee
The fee rates stayed the same ($0.32–$1.11 per unit), but Amazon made the criteria stricter. It now applies to more ASINs, and sellers hit the penalty sooner if inventory drops below the 28-day coverage threshold.
| Fee Type | 2024 Fee | 2025 Fee |
|---|---|---|
|
Aged Inventory Surcharge |
$1.50 (271–365 days) / $3.60 (365+ days) |
$2.00 (271–365 days) / $6.90 (365+ days) |
|
Monthly Storage Fee (Q4) |
$2.40 per cu. ft. |
$2.70 per cu. ft. |
|
Removal Fee (Standard Size) |
$0.97–$2.32 per unit |
$1.05–$2.89 per unit |
|
Returns Processing Fee |
~$2.12 per unit |
$2.50+ per unit |
|
FBA Labeling Service |
$0.30–$0.40 per unit |
$0.40–$0.55 per unit |
|
FBA Prep Service |
Up to $2.20 per unit |
Up to $2.60+ per unit |
|
Inbound Placement Service Fee |
$0.21–$1.58 per unit (limited scope) |
$0.21–$1.58 per unit (broader enforcement) |
|
Low-Inventory-Level Fee |
$0.32–$1.11 per unit (limited ASINs) |
$0.32–$1.11 per unit (stricter, more SKUs) |
Amazon’s Hidden or Indirect Fees
Aside from the constantly increasing or changing fees, there are also indirect charges that catch sellers off guard when they show up on the bill. These hidden costs may not be headline-grabbing, but they can quietly eat into your margins.
- Unplanned Prep Fees
Charged when your inventory arrives at the fulfillment center without proper packaging, labeling, or prep. These fees are higher than standard prep charges and can quickly add up. - Inventory Overages
If you exceed your storage limits, Amazon charges overage fees on top of your regular monthly storage. These rates are steep and usually hit without much warning. - Returns Disposal Fees
When Amazon decides returned items aren’t sellable, they’ll automatically dispose of them and bill you for it. You don’t always get notified upfront, and you can’t resell the units. - Refund Administration Fee
Amazon keeps a portion of the referral fee even after a refund is issued to the customer. This means you’re paying Amazon for a sale that didn’t stick. - High-Volume Listing Fee
Charged if your account exceeds a certain number of active listings (typically 1.5 million SKUs). It’s rare for most, but it can hit large catalog sellers unexpectedly. - Long-Term Storage Cleanup Fees
Beyond regular aged inventory charges, Amazon runs bi-annual inventory cleanup cycles. Items that aren’t removed get charged extra, even if you’ve already paid storage and aged surcharges.
The DTC Advantage: Controlled Fees
For some sellers, Amazon’s unpredictability is a major drawback, especially when it comes to fees and how they impact profitability. That’s why many have started exploring other channels like DTC, where cost structures are more transparent and stable.
Once sellers launch their own DTC site, they quickly see the difference. The fees are consistent, easy to track, and rarely change without notice, unlike Amazon, where updates can drop without warning.
This level of control allows for better financial planning, healthier margins, and fewer surprises. And once sellers experience that kind of predictability, it’s hard to go back to playing free roulette on Amazon.
Expected Fees for DTC Sites
One of the biggest benefits of DTC is knowing exactly what you’re paying for. Unlike Amazon, these costs are upfront, predictable, and easier to manage.
- Website Platform Fee
The monthly fee to host your store on platforms like Shopify, WooCommerce, or BigCommerce. Plans typically range from $29 to $299/month, depending on features. - Payment Processing Fee
Charged by providers like Stripe or PayPal when customers make purchases. Usually around 2.9% + $0.30 per transaction. - Shipping Costs
You either charge customers or absorb this, but it’s up to you. You can negotiate discounted rates with carriers or use fulfillment partners to control costs. - Domain & SSL
Cost to register and secure your site domain. Typically $10–$20/year for the domain and $0–$70/year for SSL (many platforms include SSL for free). - App or Plugin Fees
Optional add-ons for marketing, reviews, upsells, etc. These usually range from $5 to $50/month per app, depending on your setup. - Fulfillment Partner Fees (if outsourced)
If you use a 3PL (third-party logistics provider), you’ll pay pick/pack, storage, and shipping fees. These are generally flat-rate and negotiable based on volume. - Marketing Costs
Paid ads, email tools, and influencer campaigns fall here. You control the budget but expect to spend where traffic and conversions matter.
Questions About Going DTC?
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Why Predictable Profitability Matters
For sellers, unpredictable costs make it nearly impossible to plan for long-term growth. Amazon’s shifting fee structure can slowly eat away at your margins without you realizing it.
Even when you’re selling high volumes, inconsistent fees and surprise charges can turn profitable months into break-even ones. Without cost stability, forecasting, budgeting, and scaling become a constant guessing game.
That’s why sellers are building out DTC sites to create a buffer or alternative that gives them full control over pricing, promotions, and fulfillment costs. Whether used as a backup channel or part of a hybrid strategy, DTC helps brands keep more of their profits and avoid being 100% dependent on Amazon’s decisions.
Here’s why predictable profitability matters now more than ever:
- Easier to forecast monthly and quarterly margins
- More accurate inventory planning and reorder timing
- Less cash flow stress from unexpected fees
- Confidence to invest in ads, new products, or staff
- Ability to set stable pricing without worrying about surprise costs
- Fewer disruptions to your profit-and-loss planning
- Stronger long-term brand strategy with fewer reactive decisions
FAQs About Amazon Fee Changes and DTC Costs
Selling Fees Shouldn’t Be a Guessing Game
Part of selling on any platform is accepting the fees that come with it, but they need to make sense for your bottom line. You have to account for them carefully to avoid a situation where you’re working hard but barely making a profit.
So, when a platform like Amazon hits you with unpredictable charges and hidden costs, it becomes a serious challenge to scale. That’s why more sellers are turning to DTC, or at least building a hybrid setup, to create a stable, profitable foundation they can count on.
Planning on starting a DTC site for your Amazon brand? Reach out to our Amazon agency and let our experts help you build a profitable setup that works.
Stop Leaving Money on the Table
If Amazon’s hidden and rising fees are squeezing your margins, it’s time for a new strategy. Let’s build a plan that keeps your profits predictable.
