Overview

Amazon has announced the return of its annual holiday peak fulfillment fee for the 2024 season, applying to all FBA products from October 15, 2024, through January 14, 2025. While the average fee remains largely unchanged from the previous year, sellers offering products priced under $10 through US FBA will face a new peak surcharge for the first time in 2024.

What's Changing

• Holiday peak fee period — The seasonal surcharge runs from October 15, 2024, through January 14, 2025, covering the busiest shopping months of the year.
• All FBA products affected — The fee applies universally across all product categories and size bands, not just specific item types.
• New surcharge for low-price items — Products priced under $10 in US FBA will be subject to the holiday peak fee for the first time, a notable expansion from prior years.
• Consistent size-band pricing — The fee amount remains uniform for all items within a given size band, making it straightforward for sellers to calculate additional costs.
• Multi-program coverage — The fee applies across US Fulfillment by Amazon, Multi-Channel Fulfillment with FBA, and related fulfillment programs.

Why Amazon Charges a Peak Fee

The holiday peak fulfillment fee is Amazon's annual surcharge designed to offset the significantly higher fulfillment and transportation operating costs that arise during the holiday shopping season. This practice mirrors what other major carriers and logistics providers do during peak periods. UPS, FedEx, and USPS all impose similar seasonal surcharges to manage the massive volume surge that occurs between October and January each year.

Amazon has pointed out that even with this additional fee, its average FBA fulfillment fees remain approximately 70 percent less expensive than comparable two-day shipping methods offered by other major third-party logistics providers. This comparison is worth keeping in mind when evaluating whether to absorb the fee or pass it along to customers through pricing adjustments.

Impact on Low-Price Product Sellers

The most significant change for the 2024 holiday season is the extension of the peak fee to products priced under $10 in US FBA. Previously, these lower-priced items were exempt from the seasonal surcharge, giving sellers in this price range a slight margin advantage during the holidays. With this exemption now removed, sellers who specialize in low-cost products such as accessories, consumables, stocking stuffers, and impulse-buy items will need to carefully reassess their pricing strategies and profit margins for the peak period.