Amazon Fee Reductions for FBA & MCF in Australia
Amazon Australia has announced one of its largest fulfilment fee reductions to date, with changes taking effect from 10 June 2026. The update applies to selected Fulfilment by Amazon (FBA) and Multi-Channel Fulfilment (MCF) fees and is designed to help sellers reduce operational costs while maintaining competitive pricing.
What’s Changing?
Amazon will reduce fulfilment fees across selected products, with savings varying based on:
- Product category
- Size tier
- Item price
These reductions are expected to benefit a wide range of Australian sellers, particularly those operating within standard-size product categories where fulfilment costs have become an increasing focus.
Reduced MCF Fees and New Multi-Unit Discounts
For brands using Amazon's logistics network beyond Amazon.com.au, Amazon is also reducing selected Multi-Channel Fulfilment (MCF) fees.
In addition, Amazon is introducing:
- Discounted multi-unit fulfilment rates
- Savings across all envelope and standard parcel size tiers
This will be particularly valuable for brands leveraging Amazon's fulfilment network to support their own DTC websites, marketplaces, and other sales channels.
What this means for Australian Brands
The fee reductions create several opportunities for sellers:
Improved Profitability
Lower fulfilment costs can directly increase contribution margins, particularly for brands with high order volumes or products operating on tighter margins.
Brands may choose to:
- Improve profitability by retaining the savings
- Increase competitiveness through price reductions
- Reinvest savings into advertising and growth initiatives
Enhanced Multi-Channel Strategy
The MCF fee reductions make Amazon's fulfilment network an even more attractive option for brands looking to streamline fulfilment across multiple sales channels while maintaining fast delivery speeds.
What Sellers Should Do Now
Ahead of the June 10 implementation date, sellers should:
- Review their current FBA catalogue to identify ASINs likely to benefit from reduced fees.
- Update profitability and forecasting models to account for the new cost structure.
- Evaluate whether increased investment in Amazon Ads could be supported by improved margins.
- Reassess MCF usage for off-Amazon channels and calculate potential savings under the new fee structure.
Key Takeaway
This announcement represents a positive development for Australian Amazon sellers. At a time when operational efficiency remains a priority, reduced FBA and MCF fulfilment fees should help brands improve margins, scale more efficiently, and unlock additional growth opportunities across both Amazon and non-Amazon sales channels.
Amazon has confirmed that these changes will take effect on 10 June 2026, while other FBA and MCF fees will remain unchanged for now.
What Could This Mean for Your Brand?
While Amazon has not yet released the detailed fee reductions for every category and size tier, let's look at a hypothetical example of how these changes could impact an Australian seller.
Example Product
Product: Premium Water Bottle
Selling Price: AUD $39.95
Category: Sports & Outdoors
Size Tier: Standard Parcel
Monthly Sales Volume: 1,000 units
Before June 10
| Metric | Value |
|---|---|
| Selling Price | $39.95 |
| Amazon Referral Fee (15%) | $5.99 |
| FBA Fulfilment Fee | $6.50 |
| Product Cost | $12.00 |
| Advertising Cost (ACoS 12%) | $4.79 |
| Gross Profit Per Unit | $10.67 |
| Margin | 26.7% |
After June 10 (Illustrative Example)
Assuming Amazon reduces the FBA fulfilment fee by $0.50 per unit:
| Metric | Value |
|---|---|
| Selling Price | $39.95 |
| Amazon Referral Fee | $5.99 |
| FBA Fulfilment Fee | $6.00 |
| Product Cost | $12.00 |
| Advertising Cost | $4.79 |
| Gross Profit Per Unit | $11.17 |
| Margin | 28.0% |
Monthly Impact
| Metric | Before | After |
|---|---|---|
| Units Sold | 1,000 | 1,000 |
| Monthly Profit | $10,670 | $11,170 |
| Additional Profit | - | +$500/month |
Annual Impact
For a seller moving 1,000 units per month, a $0.50 reduction in fulfilment fees could generate:
$6,000 additional profit per year without selling a single extra unit.