EP446: Amazon AWD and FBA Fee Changes: Bulky Item Savings vs Low Inventory Fees
Amazon FBA operators face a dual fee structure change for bulky items effective January 15, 2026.
Key Takeaways
- Separate AWD and FBA planning to avoid conflicting inventory signals
- Maintain stock levels to avoid low inventory fees while capturing fulfillment cuts
- Plan bulky inbound to avoid routing through closed doors
- Track the two dollar and six cent Small Bulky fee reduction
- Monitor low inventory level fee triggers to protect margins
Bulky Fee Cut vs Low Inventory Fees
Today, Amazon AWD and FBA fee changes: how to keep bulky products in stock, keep the fee cut, and avoid low inventory fees. Amazon cut the average Small Bulky FBA fulfillment fee by two dollars and six cents, from eight dollars and eighty-four cents to six dollars and seventy-eight cents. That cut can disappear. A new packaging fee, averaging two dollars and seven cents, can erase it on bulky items that are not in Amazon's SIPP program. And if stock runs low, the low-inventory-level fee now applies to Small Bulky and Large Bulky, per FNSKU. At the close, I'll give you The Voltage 3, today's challenge: three checks so you can keep the fee cut, stay out of the low stock fee, and plan bulky inventory the right way. That is today's Voltage 3 challenge, delivered at the close.
The Money in Two Systems
But before we get to today's Voltage 3, let me walk through the money, because you need to see these fees before you pay them twice. Look, this is two systems, and the money is not in the same place. AWD is Amazon Warehousing and Distribution. FBA is Fulfillment by Amazon. The space change is an AWD change. AWD space now works by reservation. You plan the room. You do not just show up and hope a walk-in slot is waiting. And there is a hard cutoff on larger products. On July thirty-first, 2026, US AWD stopped accepting new bulky inbound. New bulky inventory has to go straight to FBA. Stock already in AWD can stay and replenish into FBA until it ships out. After that cutoff, an AWD reservation is not a path for new bulky inbound. The money story for larger products you keep in stock is an FBA fee story. From January fifteenth, 2026, Amazon cut the average Small Bulky FBA fulfillment fee by two dollars and six cents. The base rate dropped from eight dollars and eighty-four cents to six dollars and seventy-eight cents. That cut is real. It is not a storage discount, and it is not automatic just because you reserved space. Here is the catch. Amazon also added a packaging fee that averages two dollars and seven cents on bulky items that are not in Amazon's SIPP program. On those non-SIPP bulky items, two dollars and seven cents can erase a two dollar and six cent cut. You can lose the savings in the same update that advertised them. Then the other side of the money. The low-inventory-level fee now applies to Small Bulky and Large Bulky items, and it is assessed per FNSKU. I am not putting a dollar amount on that fee, because I do not have an official public figure I can quote. What the official rule does tell you is this. The fee applies when both your thirty-day and your ninety-day historical days of supply are under 28 days. It applies unless an exemption applies, for example selling fewer than 20 units in the last 7 days, a new professional seller in the first 365 days, a New Selection product in its first 180 days, or Grocery. Amazon's official way to avoid it is to keep more than four weeks of inventory relative to sales. So yes, you can save on larger products when you keep them in stock. And yes, low stock now costs fees. Inventory management has to be tighter, and it has to be smarter.
Walk the Fees on One Unit
Let me walk the money on one Small Bulky unit, with only the official numbers. After January fifteenth, 2026, the Small Bulky base fulfillment fee in Amazon's furniture and bulky guide is six dollars and seventy-eight cents, down from eight dollars and eighty-four cents. That is an average cut of two dollars and six cents on that size tier. Write those two numbers down next to your own FNSKU. Then ask one question. Is this bulky item in Amazon's SIPP program? If it is not, a new packaging fee averaging two dollars and seven cents can erase that cut. Two dollars and six cents down, two dollars and seven cents back, on bulky items not in SIPP. The advertised savings can go to zero, or worse, before you even talk about inventory. That is how Amazon gets paid on both sides of the same change. The cut is real. The packaging fee is real too, and it is limited to bulky items that are not in SIPP. Now look at stock, because this is where fear of missing out turns into a fee. The low-inventory-level fee now applies to Small Bulky and Large Bulky, per FNSKU, not rolled up only at the parent. Open your days of supply. Look at the last 30 days and the last 90 days. If both are under 28 days, the fee applies, unless an exemption applies, for example selling fewer than 20 units in the last 7 days, a new professional seller in the first 365 days, a New Selection product in its first 180 days, or Grocery. Keep more than four weeks of stock relative to sales if you want to stay out of it. That is the official avoid-the-fee rule. I will not invent a dollar amount for that fee. The rule is the part you can act on today. Then check the inbound path. If the product is bulky, US AWD stopped new bulky inbound on July thirty-first, 2026. Do not plan new bulky inbound through AWD. Plan FBA. If you still use AWD for products that qualify, treat space as a reservation, so you are not guessing at the gate. This is not about panic. It is about seeing the money clearly. The fee cut, the packaging fee on non-SIPP bulky items, and the low-inventory-level fee are three different charges. If you mix them up, you will think you are saving two dollars and six cents when you are not.
The Voltage 3 Moves
Alright. Here is The Voltage 3. Number one: Open your FBA fee view and write the Small Bulky base change on January fifteenth, 2026, from eight dollars and eighty-four cents to six dollars and seventy-eight cents. Check: You have the old and new base rates written down, and a yes or no on SIPP for each bulky item, so you know if a packaging fee averaging two dollars and seven cents would erase the cut. Number two: For every Small Bulky and Large Bulky FNSKU, check historical days of supply for the last 30 days and the last 90 days. Check: You can see whether both windows are under 28 days, and you have a same-day plan to keep more than four weeks of stock relative to sales. Number three: Confirm how you send new bulky inventory, and if you use AWD, review how space now works by reservation. Check: You have a written note that US AWD stopped new bulky inbound on July thirty-first, 2026, so new bulky inventory is planned through FBA, not AWD. Complete all three before the next daily episode.
Episode Summary
Amazon FBA operators face a dual fee structure change for bulky items effective January 15, 2026. The Small Bulky base fulfillment fee drops from eight dollars and eighty-four cents to six dollars and seventy-eight cents, creating a two dollar and six cent saving per unit. However, this benefit is offset by a new low inventory level fee that penalizes thin stock levels. This episode on the High Voltage Business Builders Podcast explains how to navigate both systems simultaneously.
The core insight is that Amazon Warehousing and Distribution and Fulfillment by Amazon operate as two distinct systems with conflicting incentives. Sellers often treat them as a single problem, leading to poor inventory decisions. When stock runs thin to avoid storage costs, the low inventory fee triggers, erasing the fulfillment fee cut. This creates a trap where sellers pay twice for the same inventory issue. Understanding this tension is critical for anyone selling furniture, home goods, or oversized SKUs.
The episode provides practical moves for managing this transition. First, sellers must separate their AWD and FBA planning to avoid conflicting signals. Second, they need to maintain sufficient stock levels to stay out of the low inventory fee bracket while capturing the fulfillment discount. Third, inbound planning must account for door closures, ensuring new bulky inventory does not route through facilities that are already full. These steps require active management rather than passive monitoring.
This matters now because the January 15, 2026 date is approaching, and fee structures are already in effect for planning purposes. Sellers who wait until the change takes effect will miss the opportunity to optimize their inventory levels. The two dollar and six cent saving is real, but it is conditional. It requires discipline to keep stock levels high enough to avoid penalties while low enough to manage cash flow. This is a balancing act that requires precise calculation.
The High Voltage Business Builders Podcast serves Amazon and ecommerce sellers at every level, from beginners to advanced operators. The episode breaks down the exact numbers and provides a clear framework for decision making. It is not about guessing or hoping for the best. It is about seeing the fees before they hit the bottom line. The goal is to keep the fee cut, stay out of the low inventory fee trap, and plan inbound logistics with clarity. This approach protects margins and ensures sustainable growth in a changing fee environment.
Frequently Asked Questions
How much does the Small Bulky FBA fee decrease in 2026?
The Small Bulky base fulfillment fee drops from eight dollars and eighty-four cents to six dollars and seventy-eight cents. This represents a two dollar and six cent saving per unit for sellers who maintain adequate inventory levels and avoid triggering the new low inventory level fee.
What is the low inventory level fee?
It is a new fee that applies when stock levels fall below a certain threshold. This fee can erase the savings from the reduced fulfillment fee, creating a financial trap for sellers who do not manage their inventory carefully.
When do the Amazon AWD and FBA fee changes take effect?
The changes take effect on January 15, 2026. Sellers should begin planning their inventory levels and inbound logistics before this date to ensure they capture the fee cut without incurring additional penalties.
Full Transcript
Bulky Fee Cut vs Low Inventory Fees
Today, Amazon AWD and FBA fee changes: how to keep bulky products in stock, keep the fee cut, and avoid low inventory fees. Amazon cut the average Small Bulky FBA fulfillment fee by two dollars and six cents, from eight dollars and eighty-four cents to six dollars and seventy-eight cents. That cut can disappear. A new packaging fee, averaging two dollars and seven cents, can erase it on bulky items that are not in Amazon's SIPP program. And if stock runs low, the low-inventory-level fee now applies to Small Bulky and Large Bulky, per FNSKU. At the close, I'll give you The Voltage 3, today's challenge: three checks so you can keep the fee cut, stay out of the low stock fee, and plan bulky inventory the right way. That is today's Voltage 3 challenge, delivered at the close.
The Money in Two Systems
But before we get to today's Voltage 3, let me walk through the money, because you need to see these fees before you pay them twice. Look, this is two systems, and the money is not in the same place. AWD is Amazon Warehousing and Distribution. FBA is Fulfillment by Amazon. The space change is an AWD change. AWD space now works by reservation. You plan the room. You do not just show up and hope a walk-in slot is waiting. And there is a hard cutoff on larger products. On July thirty-first, 2026, US AWD stopped accepting new bulky inbound. New bulky inventory has to go straight to FBA. Stock already in AWD can stay and replenish into FBA until it ships out. After that cutoff, an AWD reservation is not a path for new bulky inbound. The money story for larger products you keep in stock is an FBA fee story. From January fifteenth, 2026, Amazon cut the average Small Bulky FBA fulfillment fee by two dollars and six cents. The base rate dropped from eight dollars and eighty-four cents to six dollars and seventy-eight cents. That cut is real. It is not a storage discount, and it is not automatic just because you reserved space. Here is the catch. Amazon also added a packaging fee that averages two dollars and seven cents on bulky items that are not in Amazon's SIPP program. On those non-SIPP bulky items, two dollars and seven cents can erase a two dollar and six cent cut. You can lose the savings in the same update that advertised them. Then the other side of the money. The low-inventory-level fee now applies to Small Bulky and Large Bulky items, and it is assessed per FNSKU. I am not putting a dollar amount on that fee, because I do not have an official public figure I can quote. What the official rule does tell you is this. The fee applies when both your thirty-day and your ninety-day historical days of supply are under 28 days. It applies unless an exemption applies, for example selling fewer than 20 units in the last 7 days, a new professional seller in the first 365 days, a New Selection product in its first 180 days, or Grocery. Amazon's official way to avoid it is to keep more than four weeks of inventory relative to sales. So yes, you can save on larger products when you keep them in stock. And yes, low stock now costs fees. Inventory management has to be tighter, and it has to be smarter.
Walk the Fees on One Unit
Let me walk the money on one Small Bulky unit, with only the official numbers. After January fifteenth, 2026, the Small Bulky base fulfillment fee in Amazon's furniture and bulky guide is six dollars and seventy-eight cents, down from eight dollars and eighty-four cents. That is an average cut of two dollars and six cents on that size tier. Write those two numbers down next to your own FNSKU. Then ask one question. Is this bulky item in Amazon's SIPP program? If it is not, a new packaging fee averaging two dollars and seven cents can erase that cut. Two dollars and six cents down, two dollars and seven cents back, on bulky items not in SIPP. The advertised savings can go to zero, or worse, before you even talk about inventory. That is how Amazon gets paid on both sides of the same change. The cut is real. The packaging fee is real too, and it is limited to bulky items that are not in SIPP. Now look at stock, because this is where fear of missing out turns into a fee. The low-inventory-level fee now applies to Small Bulky and Large Bulky, per FNSKU, not rolled up only at the parent. Open your days of supply. Look at the last 30 days and the last 90 days. If both are under 28 days, the fee applies, unless an exemption applies, for example selling fewer than 20 units in the last 7 days, a new professional seller in the first 365 days, a New Selection product in its first 180 days, or Grocery. Keep more than four weeks of stock relative to sales if you want to stay out of it. That is the official avoid-the-fee rule. I will not invent a dollar amount for that fee. The rule is the part you can act on today. Then check the inbound path. If the product is bulky, US AWD stopped new bulky inbound on July thirty-first, 2026. Do not plan new bulky inbound through AWD. Plan FBA. If you still use AWD for products that qualify, treat space as a reservation, so you are not guessing at the gate. This is not about panic. It is about seeing the money clearly. The fee cut, the packaging fee on non-SIPP bulky items, and the low-inventory-level fee are three different charges. If you mix them up, you will think you are saving two dollars and six cents when you are not.
The Voltage 3 Moves
Alright. Here is The Voltage 3. Number one: Open your FBA fee view and write the Small Bulky base change on January fifteenth, 2026, from eight dollars and eighty-four cents to six dollars and seventy-eight cents. Check: You have the old and new base rates written down, and a yes or no on SIPP for each bulky item, so you know if a packaging fee averaging two dollars and seven cents would erase the cut. Number two: For every Small Bulky and Large Bulky FNSKU, check historical days of supply for the last 30 days and the last 90 days. Check: You can see whether both windows are under 28 days, and you have a same-day plan to keep more than four weeks of stock relative to sales. Number three: Confirm how you send new bulky inventory, and if you use AWD, review how space now works by reservation. Check: You have a written note that US AWD stopped new bulky inbound on July thirty-first, 2026, so new bulky inventory is planned through FBA, not AWD. Complete all three before the next daily episode.
Stay High Voltage
The money is in the details. Keep the fee cut, stay out of the low-inventory-level fee, and do not plan new bulky inbound through a door that is already closed. Want today's Voltage 3 written out? The Daily Amazon Seller puts the three tips in your email, plus a free Alexa gap audit. Go to voltagedm.com/amazonsellernewsletter. We run more than 25 brands of our own. Come find us at VoltageDM.com. Do something imperfectly, and something perfect will happen along the way. Until tomorrow, stay high voltage.
Your Amazon tools can read the data. They cannot act on it.
In a recent 143-seller AI challenge, 47% of sellers said the same thing: take Amazon Ads off my plate first. Almost every tool answers with another read-only report you still have to act on by hand. Caiman Data AI is different. 85 Read + Act tools on Amazon's own APIs run the analysis, put the recommendation and the trade-offs in front of you, and write the change back to Amazon on your go. You stay in the CEO chair.
Amazon Ads comes off your plate first
47% of sellers want AI to take over Amazon Ads before anything else. Full campaign audits, bids, placements, negatives, and bulk changes run under your supervision instead of eating your week.
Escape the read-only trap
Downloading reports is not automation. Read + Act tools publish listing fixes, bid changes, and reorder calls straight back to Amazon, previewed before anything ships.
Time back, pointed at the exit
Sellers in that challenge ranked scale and exit as their top two goals. The same stack saves us 17 hours a week and an average of $26,400 a year across our more than 25 brands, and those hours go into building an asset a buyer wants. Our largest client exit: $72M.
Voltage Business Builders is not software you buy and figure out alone. It is an invite-only room of 320+ elite operators, plus Caiman AI access that connects your live business data to the systems we run on our portfolio brands. You stay in the CEO chair while AI does the analytical horsepower. The room keeps you on the right fundamentals so you 10x results, grow net profit the right way, and build toward empire or retirement with exit in mind.