In early 2025, Amazon officially announced a significant reduction in FBA (Fulfillment by Amazon) multi-category package fees, covering all major European markets. This adjustment not only lowers sellers’ logistics and operating costs but also injects new vitality into the expansion of cross-border e-commerce businesses in Europe.
In this article, we will thoroughly analyze the background, specific changes, deep impacts on sellers, and strategies to seize these new opportunities.
Why Is Amazon Reducing FBA Multi-Category Package Fees?
In recent years, the European e-commerce market has experienced sustained growth, particularly post-pandemic, with online shopping becoming the mainstream consumer behavior. However, high logistics costs have long been a major barrier for sellers expanding into Europe.
To enhance seller engagement, enrich platform product diversity, and better compete against local e-commerce giants (such as Zalando, Otto, Cdiscount), Amazon made a proactive move in 2025:
- Reducing logistics and shipping costs to ease sellers’ burden
- Enhancing the cost-effectiveness of FBA services to attract more sellers
- Speeding up cross-border delivery efficiency to improve the buyer experience
This FBA fee reduction highlights the increasing strategic importance of the European market in Amazon’s global supply chain optimization efforts.
Details of the FBA Fee Adjustments
According to Amazon’s official announcement, the FBA fee reductions mainly cover the following aspects:
1.Lower Shipping Fees for Small and Standard-Size Packages
- Average Reduction: 5%-10%
- Markets Covered: United Kingdom (UK), Germany (DE), France (FR), Italy (IT), Spain (ES)
- Scope: Products across various weight and size brackets, with small and lightweight items benefiting the most
2.Optimized “Small and Light” Program
- Higher Price Threshold: The maximum eligible price for Small and Light items has been slightly raised (varies by country)
- Lower fulfillment fees to encourage more low-cost, high-frequency products
- Improved packaging and picking efficiency, further shortening delivery times
3.Enhanced Support for the Pan-European FBA (PAN-EU) Program
- Cross-border shipping fees significantly reduced
- Sellers can store inventory in one country and sell across multiple European countries, achieving true localized fulfillment across Europe
How the FBA Fee Reduction Impacts Sellers
1.Directly Lowers Operational Costs
Logistics expenses typically account for 20%-40% of cross-border sellers’ total operating costs.
The latest FBA fee reduction means lower fulfillment costs per order, expanded profit margins, and greater flexibility for pricing and promotions.
2.Improves Product Price Competitiveness
In the European market, consumers are highly price-sensitive. Lower logistics costs enable sellers to lower product prices without sacrificing profits, helping them stand out in competitive listings and boost sales conversions.
3.Facilitates Multi-Site Market Expansion
Previously, high cross-border costs discouraged sellers from expanding to multiple European marketplaces.
Now, with reduced shipping fees, expanding across different Amazon EU sites through PAN-EU becomes more financially viable.
4.Boosts Growth of Small and Lightweight Products
Products that are small, lightweight, and moderately priced will benefit the most from these changes. Sellers should adjust their product strategies to prioritize this high-demand, fast-moving category.
How Should Sellers Respond and Capitalize on This Change?
To fully leverage the Amazon FBA fee reduction, sellers should implement the following practical strategies:
1.Recalculate Costs and Profit Models
- Update pricing strategies based on the new FBA fee structure
- Analyze and optimize cost differences across various EU marketplaces
2.Optimize Product Selection — Focus on Small and Lightweight Items
- Increase the proportion of small, lightweight, high-turnover products
- Maximize the advantages of the Small and Light program to build a portfolio of high-frequency purchases
3.Accelerate Multi-Country Expansion Across Europe
- Use the PAN-EU program to achieve faster, localized delivery
- Expand sales to additional countries through the European Fulfillment Network (EFN)
4.Strengthen Localization and Compliance
- Ensure VAT compliance to avoid tax-related sales restrictions
- Tailor product descriptions and advertising strategies to local consumer preferences
Future Outlook: New Opportunities in the European Amazon Market
As Amazon continues to optimize its FBA logistics system and European consumers become even more reliant on online shopping, the European e-commerce market is expected to maintain strong growth in the coming years.
This FBA fee reduction will not only benefit existing sellers but also attract more newcomers to the platform.
Those who quickly adjust their strategies, rationally plan their product portfolios, and optimize their cost structures will emerge as the biggest winners in the next phase of cross-border e-commerce growth.
Conclusion
Amazon’s reduction of FBA multi-category package fees represents a major shift in the cross-border e-commerce landscape for 2025.
For sellers already operating in Europe or planning to enter the market, this is a golden opportunity to optimize costs, increase competitiveness, and scale their businesses rapidly.
