Why this matters now
Over the last couple of cycles, Amazon introduced and refined several fees that meaningfully change unit economics: the Low-Inventory-Level Fee (LIVE), the FBA Inbound Placement Service Fee, a Returns Processing Fee for high-return-rate items, and ongoing tweaks to storage and aged-inventory surcharges. For 2025, Amazon signaled no broad hikes to US referral/FBA base rates and even lowered some rates while adding targeted adjustments and peak windows you still need to plan around. Amazon SER
This guide translates the policy jargon into clear actions you can take this quarter to protect contribution margin.
At-a-glance: what’s “new” (and what’s unchanged)
- Low-Inventory-Level Fee (LIVE): Applies when your inventory stays too low relative to demand; meant to reduce frequent emergency replenishments that strain the network. (Introduced in 2024; still relevant in 2025.) Amazon Seller Central
- FBA Inbound Placement Service Fee: Charges based on how Amazon positions inventory across its network; billed after receipt, with options shown during shipment creation. (Some waivers existed for qualifying new parent ASINs Dec 1, 2024–Mar 31, 2025.) SellerAppAmazon SER
- Returns Processing Fee: Applies to products with high category return rates (apparel/shoes excluded) and is assessed after each 3-month window. Effective June 1, 2024—still active. Amazon Seller Central+1
- Storage & Aged-Inventory Surcharges: Snapshot on the 15th of each month; additional charges beyond regular storage for inventory that lingers. Q4 months continue to carry elevated storage costs. Amazon Seller Centralsellercentral.amazon.nl
- Peak windows: Holiday peak fulfillment fees apply within specified windows (including Low-Price FBA products). Plan for Oct 15–Jan 14 timing in the 2025 season. Amazon Seller Central+1
- What’s unchanged (directionally): Amazon flagged no across-the-board increases to US referral and FBA base fees for 2025 and highlighted some reductions/benefits—helpful, but the targeted fees above still move your margin needle. Amazon Seller CentralAmazon SER
The Low-Inventory-Level Fee (LIVE)
What it is: An additional fee when Amazon deems your inventory too lean relative to your recent demand patterns. It’s intended to incentivize steadier days of supply. Amazon Seller Central
How it behaves: While Amazon’s official help resources define eligibility and calculation, third-party analyses summarize that LIVE is tied to short- and long-term days-of-supply metrics—if your coverage falls below Amazon’s threshold for too long, the fee is assessed. Think of it as a “penalty” for chronically running close to stockout.
Billing cadence & visibility: Charges appear in your transaction reports; Amazon has shared forum guidance on how to surface adjustments/credits via Date Range reports. Amazon Seller Central
How to prevent it (playbook):
- Target 35–60 days of cover on your top movers (category/seasonality dependent). This cushions lead-time volatility.
- Use 7/30/90-day weighted forecasts, not a simple 30-day average. Weight recent velocity higher if you’re in growth or promo cycles.
- Split POs (weekly/biweekly) to smooth receipt cadence.
- Build a “safety stock” rule by SKU that accounts for lead-time variance + inbound defects.
- Tie ads to inventory: throttle spend if weeks of cover dip below your floor to avoid paying LIVE while accelerating a stockout.
The FBA Inbound Placement Service Fee
What it is: A fee tied to where/how Amazon positions your inbound units in its network. During shipment creation, you’ll see options (for example, sending to fewer nodes vs distributing). The fee is typically charged after Amazon receives your shipment (expect a delay before it posts). SellerApp
Temporary incentives (historical): Amazon granted a waiver for up to the first 100 units per new parent ASIN that qualified for FBA New Selection for shipments created Dec 1, 2024–Mar 31, 2025. If you launched during that window, you may have benefited. (This specific waiver window is now past.) Amazon SER
Where to track it: Use the Inbound Placement Service Fee report to see charges at the shipment and SKU level. Amazon Seller Central
How to reduce it (playbook):
- Cartonization discipline: Keep cartons pure-SKU and adhere to Amazon’s prep/label specs to unlock cheaper placement options.
- Accept smart splits: Sometimes sending to 2–3 FCs lowers total placement cost vs forcing single-node. Run the math.
- Batch cadence: Larger, well-built shipments can price better than many micro-shipments with poor cartonization.
- Leverage regional demand: If you can ship closer to where your demand lives, Amazon’s redistribution burden—and thus your fee—tends to be lower.
Returns Processing Fee (RPF)
What it is: For products with high return rates by category (excluding apparel and shoes), Amazon adds a returns processing fee. It went into effect June 1, 2024, and charges hit after each three-month period (e.g., returns for units shipped in June are charged in September). Amazon Seller Central+1
What drives the fee: High return rates vs your category benchmarks.
Where to work: Improve listing clarity (titles, images, sizing/fit guides, “what’s in the box”), upgrade QC, and watch Return Insights in Seller Central to spot patterns (wrong color, missing parts, damaged in transit, etc.). Amazon Seller Central
How to reduce it (playbook):
- Pre-purchase clarity: Images that set expectations (scale/size in context), bullets that anticipate FAQs, and video for assembly/use.
- Packaging & inserts: Damage-resistant packaging and simple “how to use” quick guides cut misuse returns.
- Variant hygiene: Kill underperforming/confusing variants; audit browse node/attributes to ensure the right customer is landing on the right SKU.
- Post-purchase nurture: Automated emails (where policy allows) for setup tips and support options often prevent “too hard, return it” behavior.
Storage & Aged-Inventory Surcharges
Monthly storage: Expect higher rates in Q4 months; that’s unchanged directionally. Plan inventory positioning to avoid overstuffing October–December. sellercentral.amazon.nl
Aged-inventory surcharge: Amazon snapshots your inventory on the 15th each month; surcharges layer on top of standard storage once SKUs cross certain age thresholds (e.g., 181+ days). Treat this like a “toll” on slow movers. Amazon Seller Central
How to reduce it (playbook):
- Segment by velocity decile: For the bottom deciles, consider FBM, multi-channel fulfillment, or DTC to bleed down stock pre-threshold.
- Calendar your removals: Put a recurring task before the 15th to evaluate removals/disposals and avoid the snapshot.
- Price to move: Temporary price reductions + ads can be cheaper than months of surcharge. Test a 10–15% reduction with tightly targeted ads.
- Launch staging: Don’t inbound a full launch buy—stage inventory to match ramp-up.
Peak windows: plan for holiday surcharges
For the 2025 holiday season, Amazon applies a holiday peak fulfillment fee during Oct 15–Jan 14 windows (including Low-Price FBA). Model this into Q4 contribution margins and promo planning. Amazon Seller Central+1
“Okay, but what didn’t get worse?”
Amazon communicated no across-the-board increases to US referral and FBA base fulfillment fees for 2025, and even some targeted decreases/benefits. That’s helpful, but most sellers feel the impact from the targeted/behavior-based fees above—so the work is about managing inputs (forecasting, inbound, listing clarity, inventory age), not just hoping fee tables go your way. Amazon Seller CentralAmazon SER
Your updated margin formula (include the “new fees”)
Contribution Margin (per unit) =
Selling Price
− Referral Fee
− FBA Fulfillment Fee (incl. any peak window adders)
− Inbound Placement Service Fee (allocated per unit)
− Low-Inventory-Level Fee (if applicable; allocate to affected units)
− Returns Processing Fee (allocate based on historical return rate × fee)
− Storage Cost (time-weighted while in FC)
− Aged-Inventory Surcharge (if applicable)
− COGS (product + inbound freight + prep/pack)
Tips:
- Allocate inbound placement fees by SKU and shipment (use Amazon’s placement fee report). Amazon Seller Central
- For RPF, allocate by expected returns (units × historical return rate × fee). Amazon Seller Central
Practical scenarios & levers
Scenario A: LIVE keeps hitting a hero SKU
- Raise min weeks of cover by ~1–2 weeks, split POs into smaller, more frequent shipments, and throttle ads during low cover.
- Net effect: Slight working-capital increase, but LIVE disappears and stockouts drop—often a positive net margin outcome.
Scenario B: Inbound placement fee spikes after a new plan
- Compare the cost of accepting Amazon’s recommended multi-node split vs forcing consolidation. Rebuild cartons to pure-SKU, correct labels, and re-rate.
- Net effect: Well-prepped split shipments frequently price lower overall than non-compliant consolidation.
Scenario C: RPF on a subcategory creeps up
- Audit listing content, push a packaging tweak to reduce damage, and revise variation structure.
- Net effect: 2–3 points lower return rate can remove RPF entirely for that parent, lifting net margin immediately.
Scenario D: Aged-inventory surcharge looming
- Pull forward a removal order one week before the 15th snapshot; add a price-to-move promo to flush the rest.
- Net effect: One-time cost beats months of surcharge.
Weekly “Fee Control” checklist
- Inventory Coverage Scan: Flag SKUs < your coverage floor (by decile).
- Inbound Plan QA: Ensure cartons are pure-SKU, labels correct; preview placement options before locking. SellerApp
- Return Insights: Triage top reasons for returns; file quality issues; fix listing clarity. Amazon Seller Central
- Age Snapshot Prep: If the 15th is approaching, decide on price moves vs removals. Amazon Seller Central
- Reports: Pull Inbound Placement Service Fee and transaction views to validate charges; investigate anomalies. Amazon Seller Central
FAQs
Where do I actually see the inbound placement charges?
Use Amazon’s Inbound Placement Service Fee report at shipment/SKU level. Amazon Seller Central
When does the inbound placement fee hit my account?
Typically after the FC receives your shipment; help resources describe a delay (expect around 45 days after receipt). SellerApp
Do apparel/shoes get the Returns Processing Fee?
No—those categories are excluded from RPF; the program targets items with high return rates in other categories. Amazon Seller Central
Are base referral/FBA fees higher in 2025?
Amazon stated no broad increases for US referral and FBA base fees in 2025 and highlighted targeted reductions/benefits; you still need to plan around the behavior-based fees outlined here. Amazon Seller CentralAmazon SER
Any special 2025 Q4 considerations?
Yes—plan for holiday peak fulfillment fees in the Oct 15–Jan 14 window (including Low-Price FBA). Model this in your promo and margin plans. Amazon Seller Central
The bottom line
None of these fees exist in a vacuum. LIVE penalizes poor replenishment hygiene. Inbound placement costs reward clean cartonization and sensible splits. RPF punishes unclear listings and QC issues. Storage surcharges punish indecision and excess inventory.
If you tighten forecasting, ship clean, and keep listings crystal-clear, most of the “new fees” become controllable line items—not profit killers.
Need a second set of eyes on your fee model or a playbook tailored to your catalog? We help brands tune inventory policy, shipment strategy, and listing quality so fees go down and margins go up.
