Amazon Fee Reductions for FBA & MCF in Australia

Amazon Australia has announced oneof 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 whilemaintainingcompetitive 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 tobenefita wide range of Australian sellers, particularly thoseoperatingwithin standard-size product categories where fulfilment costshave become an increasing focus.

Reduced MCF Fees and New Multi-Unit Discounts

For brands using Amazon'slogisticsnetwork 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 brandsleveragingAmazon'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 productsoperatingon tighter margins.

Brands may choose to:

• Improve profitability byretainingthe 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 attractiveoptionfor brands looking to streamline fulfilment across multiple sales channels whilemaintainingfast delivery speeds.

What Sellers Should Do Now

Ahead of the June 10 implementation date, sellers should:

• Review their current FBA catalogue toidentifyASINs likely tobenefitfrom 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 announcementrepresentsa positive development for Australian Amazon sellers. At a time when operational efficiencyremainsa priority, reduced FBA and MCF fulfilment fees should help brands improve margins, scale more efficiently, and unlockadditionalgrowth 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.