Amazon’s FBA fees force expensive products to subsidize cheap ones. Look at a sm
By Scott Needham · November 13, 2026 · Curated by George's Blog
Amazon’s FBA fees force expensive products to subsidize cheap ones.
Look at a small-standard product weighing 2 oz or less in next 2027 update:
• Priced below $10: $2.64 to fulfill
• Priced $10–$50: $3.75 to fulfill
• Priced above $50: $4.31 to fulfill
Same size tier. Same weight bracket. A $1.67 difference based on the selling price.
Like... wow.
It's clever, I gotta give them that.
I don't blame them. The cheap stuff is hyper competitive.
The higher-priced product pays 63% more in fulfillment fees.
And that gap is widening. In 2026, the difference between the lowest and highest price brackets was $1.15.
In 2027, it becomes $1.67.
These are non-apparel, non-peak rates, before the fuel and logistics surcharge.
My read: Amazon is using higher-priced products to help keep fulfillment affordable for lower-priced selection. The rate card doesn’t prove the underlying cost allocation, but it clearly shifts more of the fee burden toward expensive products.
There’s a business rationale here. A few dollars in fulfillment fees can make a $7 item difficult to sell profitably.
But for premium brands, this means your selling price affects more than your referral fee. It also changes what Amazon charges to fulfill the order.
Any true Amazon guru knows that you never sell a product for $10.49. You're hurting everyone there. Except for Andy Jassy.