Amazon’s new fuel surcharge signals a deeper shift in profitability

A small change on paper, a real impact in practice

Amazon has introduced a new fuel and logistics-related surcharge on its fulfilment services, adding another layer of cost that brands need to factor into their margins.
The surcharge is set at around 1.5% of fulfilment fees in Europe and approximately 3.5% in the US. It applies to FBA and, shortly after, to Multi-Channel Fulfilment as well. On average, this equates to roughly £0.05 per unit in Europe, although the exact impact varies depending on product size and weight.
At first glance, this may seem relatively minor. In reality, the way this fee is applied makes it far more significant.

Why this directly impacts profitability
Unlike referral fees, this surcharge is applied to fulfilment costs rather than revenue. This means it flows directly through to contribution margin and cannot be offset by improvements in advertising efficiency or conversion rate.
Every unit fulfilled through Amazon becomes slightly less profitable overnight.
For high-volume brands, this adds up quickly. The impact is particularly noticeable for lower price point products, bulkier items, or categories where fulfilment costs already represent a larger share of the total cost base.

Part of a wider shift in cost structure
This change does not sit in isolation. Over recent months, Amazon’s cost structure has become increasingly complex, with additional pressures from cross-border fees, storage efficiency, and returns.
Cross-border digital services fees can add ~2–3% on top of Amazon fees, while storage, aged inventory, and returns can contribute a further ~1–3% margin impact, depending on the category.
Combined with the new fuel surcharge of ~1.5% in Europe and ~3.5% in the US, many brands are now seeing a total margin impact of ~3–7%, even before advertising.
While some headline fees were reduced earlier in the year, these less visible costs are quietly offsetting those gains. What is emerging is a more dynamic, cost-to-serve model, where brands are charged based on how expensive they are to operate within Amazon’s network.

What brands should focus on now
As a result, growth alone is no longer enough. Brands can continue to scale revenue while seeing margins erode if these underlying costs are not actively managed.
The priority now is to focus on true profitability at SKU level. Understanding which products genuinely drive margin, where packaging and fulfilment can be optimised, and how inventory can be managed more efficiently will become increasingly important.
Pricing strategy also needs to be revisited, as some of these cost increases may need to be passed through to maintain healthy margins.

Bottom line
The introduction of the fuel surcharge is not a dramatic headline change, but it is a clear signal of where Amazon is heading.
The US is already seeing a more aggressive version of this with a 3.5% surcharge, while Europe has started at a lower level. However, the direction is consistent across both regions.
Amazon is becoming more precise in how it charges, and profitability is becoming more operationally driven as a result.
Brands that adapt to this shift will protect and grow their margins. Those that rely purely on top-line growth may find that, over time, the numbers stop adding up.