Amazon Updates Prep Service Fees for US and Canada Vendors Starting July 21, 2025

Amazon is updating its prep chargeback rates for vendors in the US and Canada, effective July 21, 2025. This marks the first adjustment since 2022 and reflects rising operational costs across Amazon’s fulfillment network. Vendors who continue to rely on Amazon’s prep services—including bagging, bubble wrapping, and other handling—will be subject to the new rate structure outlined below.

Why the Change?

Amazon states that the new rates better reflect the actual costs of labor, materials, and processing required to prep products at scale. As fulfillment centers evolve and customer expectations grow, durable and efficient packaging has become increasingly important to reduce damage, maintain safety, and support Amazon’s Climate Pledge commitments.

To reduce or eliminate prep-related chargebacks, Amazon strongly encourages vendors to optimize their product packaging to meet FBA requirements independently. Vendors can access resources through the Product Prep and Packaging dashboard in Vendor Central to identify opportunities for improvement.

What’s Changing?

1. Size-Based Rate Differentiation:

Rates will now vary depending on whether a product is standard-sized or oversized. Products are classified as oversized if they exceed 18 x 14 x 8 inches or weigh more than 20 lbs.

2. Updated Fee Schedule:

The table below outlines the new charges by prep type:

Implementation Timeline

• New rates apply to all products received at Amazon fulfillment centers on or after July 21, 2025.

• Current rates remain in effect for all products received before that date.

How to Avoid Prep Fees

Amazon outlines several paths to minimize or avoid prep service charges:

• Certify products through the Prep-Free Packaging (PFP) program.

• Adjust packaging to meet FBA prep requirements before shipment.

• Work with a third-party prep service.

• Use recyclable, minimal packaging that supports Amazon’s sustainability goals.

Visit the Ships in Product Packaging page in Vendor Central for certification details and packaging standards.

Final Note

This change affects only the cost of prep services—not the prep requirements themselves. Vendors should proactively review packaging practices to reduce dependence on Amazon’s prep services and avoid increased chargebacks under the new fee structure.

For further support, vendors can access the Product Prep and Packaging report in Vendor Central or contact their Commerce Canal Brand Manager via email.