Amazon Revises Multi-Channel Distribution Transportation Fees Effective January 15, 2026
Amazon is revising Multi-Channel Distribution (MCD) transportation fees effective January 15, 2026, with increases of 10-18% on box load rates and a 17% jump on the longest-distance palletized tier. Multi-channel sellers using AWD for off-Amazon fulfillment need to recalculate margins.
Overview
Amazon has updated the transportation fee schedule for Multi-Channel Distribution (MCD) orders placed through Amazon Warehousing and Distribution (AWD). These revised rates, effective January 15, 2026, apply to sellers who use AWD inventory for replenishment to non-Amazon sales channels. Understanding these fee changes is essential for any multi-channel seller relying on AWD to manage inventory across platforms.
Key Points / What Sellers Need to Know
- New rates take effect January 15, 2026 — MCD transportation fees are being revised for both box load (small parcel delivery) and palletized load (less-than-truckload) shipments, with increases across most distance tiers.
- Fees are distance-based and weight-based — The MCD transportation fee is calculated by multiplying the shipping weight of your box or pallet by a per-pound rate determined by the distance between the AWD distribution center and your off-Amazon destination.
- Two shipping methods available — Sellers can choose between box load (small parcel delivery), where individual boxes are shipped directly, or palletized load, where boxes are consolidated onto pallets for LTL/TL delivery.
- Dimensional weight may apply — Shipping weight is the greater of actual weight or dimensional weight, which means lightweight but bulky shipments could cost more than expected.
- AWD storage and processing fees are separate — MCD orders also incur standard AWD storage and processing fees in addition to the transportation charge.
Updated MCD Transportation Rates (Effective January 15, 2026)
The revised fee structure maintains a tiered pricing model based on shipping distance. For box load (small parcel delivery), the per-pound rates are: $0.50 for 0–150 miles, $0.58 for 151–300 miles, $0.63 for 301–600 miles, $0.76 for 601–1,000 miles, $0.95 for 1,001–1,400 miles, $1.13 for 1,401–1,800 miles, and $1.26 for shipments over 1,801 miles. These represent increases of roughly $0.07–$0.19 per pound compared to the current rates depending on the distance tier.
For palletized load (LTL/TL), the updated per-pound rates are: $0.11 for 0–250 miles, $0.15 for 251–500 miles, $0.21 for 501–1,000 miles, $0.27 for 1,001–1,500 miles, $0.32 for 1,501–2,000 miles, and $0.42 for distances over 2,001 miles. Palletized shipping remains significantly cheaper per pound, though the longest-distance tier sees a notable increase from $0.36 to $0.42.
Analysis & Recommendations
Why This Matters
Multi-channel sellers using Amazon Warehousing and Distribution to fulfill orders on other platforms will face higher transportation costs starting January 15, 2026. Those shipping long distances via small parcel delivery will be most affected and should evaluate palletized shipping as a cost-saving alternative.
Key Takeaways
- MCD box load (small parcel) rates increase 10-18% across all distance tiers effective January 15, 2026
- Palletized load rates remain mostly flat except the 2,001+ mile tier, which rises from $0.36 to $0.42 per pound
- Shipping weight is the greater of actual weight or dimensional weight — bulky, lightweight items may cost more than expected
- Palletized shipping remains significantly cheaper per pound than box load, making consolidation a key cost-saving strategy
Recommended Actions
- →Audit your current MCD shipping volumes and distances to estimate the cost impact of the January 2026 rate changes
- →Compare box load vs. palletized load costs for your typical shipments — switching to pallets could yield substantial savings
- →Update your Q1 2026 pricing and margin models to account for the higher MCD transportation fees
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