Amazon Canada's 2025 Fee Update: Core Rates Hold Steady, Storage Costs Rise
Amazon Canada is freezing referral and FBA fulfillment fees for 2025 but raising monthly storage costs and expanding aged inventory surcharges. Low-price FBA thresholds are also improving, benefiting sellers of affordable products.
Overview
Amazon has released its 2025 fee schedule for Canadian sellers, and the headline is welcome: referral fees and FBA fulfillment rates are not going up, and no new fee types are being introduced. However, the picture is not entirely rosy. Storage-related costs are climbing, aged inventory surcharges are expanding, and sellers will need to sharpen their inventory management to avoid paying more. Several incentive programs are also being enhanced to encourage new product listings.
What's Changing
- Referral and FBA fulfillment fees frozen — Core selling and fulfillment rates remain unchanged, with no new fee categories added for 2025.
- Low-price FBA threshold expanded — The qualifying price ceiling rises from CAD 11 to CAD 14, and the per-unit discount increases from CAD 0.55 to CAD 0.80, effective March 15.
- Monthly storage fees going up — Standard-size non-peak rates increase by CAD 4/cubic metre and peak rates by CAD 13/cubic metre, effective April 1.
- Aged inventory surcharge tightened — New surcharges now apply to inventory stored 181–270 days, effective March 15.
- New selection incentives enhanced — Bigger FBA New Selection discounts target everyday essentials, high-demand products, and popular global brands.
Low-Price FBA Gets More Attractive
Sellers competing on price in the Canadian marketplace are getting a meaningful break. By raising the low-price FBA threshold from CAD 11 to CAD 14 and boosting the per-unit discount to CAD 0.80, Amazon is making fulfillment more cost-effective for a wider range of affordable products. Sellers pricing items in the CAD 11 to CAD 14 range should revisit their unit economics, because products that were previously borderline unprofitable through FBA may now pencil out. This is particularly relevant for categories like health and beauty, grocery, and everyday consumables where price sensitivity is high and margins are tight.
Storage Costs Demand Leaner Inventory
The most impactful change for many sellers will be the increase in monthly storage fees. Standard-size products will cost CAD 4 more per cubic metre during off-peak months and CAD 13 more during the October-through-December peak season. Oversize items see smaller increases of CAD 3 and CAD 8 per cubic metre respectively. Amazon is also adjusting storage utilization surcharge rates based on sell-through performance, meaning sellers with sluggish inventory turnover will face compounding costs. The message is clear: Amazon wants Canadian FBA warehouses running leaner. Sellers who carry deep stock relative to their sales velocity will feel the squeeze most during Q4 when the combined per-cubic-metre cost increase is steepest.
Analysis & Recommendations
Why This Matters
Canadian Amazon sellers need to understand these fee changes to protect their margins. Rising storage costs reward lean inventory management, while the expanded low-price FBA threshold creates new opportunities for sellers of affordable products.
Key Takeaways
- Core referral and FBA fulfillment fees are frozen for 2025 with no new fee types
- Monthly storage fees are rising significantly, especially during peak season (up CAD 13/cubic metre for standard-size)
- Low-price FBA threshold expanding from CAD 11 to CAD 14 with a larger per-unit discount
- New aged inventory surcharges now apply to items stored 181-270 days starting March 15
Recommended Actions
- →Audit your inventory age reports in Seller Central and clear stock approaching 181 days before March 15
- →Recalculate margins on products priced CAD 11-14 that may now qualify for the expanded low-price FBA discount
- →Review your Q4 inventory plan to account for steeper peak-season storage costs starting April 1
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