Amazon Cuts EU Referral and FBA Fees Ahead of Schedule, Effective January 5, 2026
From 5 Jan 2026 Amazon cuts referral fees for items ≤£20/€20 to 8% (5% for ≤£10) and expands the low‑price FBA discount up to £20, saving ~£0.40 per unit. Deal‑fee caps drop to £200/€300/€100, giving sellers an extra month of lower costs.
Overview
Amazon is moving up its 2026 European fee‑reduction schedule, making the new rates effective on January 5, 2026 instead of February 1. The accelerated changes lower referral percentages, extend low‑price FBA discounts, and trim promotional fee caps across the UK and EU marketplaces. Sellers with high‑volume, low‑priced inventories stand to see noticeable cost savings immediately.
Key Points
- Referral fee cut for sub‑£20/€20 items — Categories that previously charged 15 % will now charge 8 % on products priced at £20/€20 or less, and 5 % on items under £10/€10.
- Further drop for already low‑fee categories — Segments that were already at an 8 % rate will see that rate fall to 5 % for any SKU priced below £10/€10.
- Extended low‑price FBA rates — The reduced fulfillment fee that once applied only to the cheapest SKUs now covers any product priced up to £20/€20, delivering roughly £0.40/€0.45 less per unit on average.
- Reduced caps on deal fees — Variable fees for Lightning Deals and similar promotions shrink to £200 in the UK, €300 in a leading EU market, and €100 in several other European stores.
- Earlier start date adds a month of savings — By shifting the rollout forward by nearly a month, sellers gain an extra 30 days of lower costs before the original February deadline.
How the Fee Reductions Work
- Referral fee recalculation — When a seller lists a product priced at £9/€9 in the “Home & Kitchen” category, the platform now applies a 5 % referral fee instead of the previous 15 %. For a £9 sale, the fee drops from £1.35 to £0.45, instantly improving margin.
- Low‑price FBA eligibility expansion — A seller shipping a £18/€18 toy through FBA will now qualify for the discounted fulfillment tier that was once limited to items under £10. The per‑unit fulfillment charge falls from £1.20 to about £0.80, saving roughly £0.40 per unit.
- Deal fee cap adjustment — If a merchant runs a Lightning Deal in Germany with a projected fee of €350 under the old cap, the new €300 ceiling reduces the payable fee by €50, making the promotion more financially viable.
Analysis & Recommendations
Why This Matters
The referral fee drop from 15% to 8% (or 5% under £10) can increase profit on low‑priced SKUs by up to £0.90 per sale. Expanded FBA discounts save roughly £0.40 per unit for items up to £20, and lower deal‑fee caps reduce promotional costs by €50‑£50, accelerating profitability.
Key Takeaways
- Referral fee for sub‑£20 items falls to 8% and to 5% for sub‑£10 items, down from 15%.
- Low‑price FBA discount now applies to SKUs priced up to £20/€20, saving ~£0.40 per unit.
- Lightning Deal fee caps reduced to £200 in the UK, €300 in a leading EU market, and €100 in several other stores.
- Effective date moved up to 5 Jan 2026, giving sellers an extra 30 days of savings before the original Feb 1 rollout.
Recommended Actions
- →In Seller Central, go to Inventory > Manage Inventory and reprice SKUs ≤£10 to reflect the new 5% referral fee.
- →Switch eligible products priced £10‑£20 to Fulfilled by Amazon via Inventory > Fulfillment > Change to FBA to capture the expanded discount.
- →Review Lightning Deal settings in Advertising > Promotions and adjust budgets to stay within the new £200/€300/€100 fee caps.
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