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Amazon has always been fertile ground for the print-on-demand industry, so any new policies on this platform directly impact the businesses of sellers. 2026 marks a period of significantly tighter operational procedures and increased cost transparency from Amazon. A series of changes to FBA, fulfillment fees, returns, and inventory management are directly affecting the print-on-demand (POD) model.
For POD sellers, failing to comply with these policies not only increases costs but can also lead to shipment errors, lost Buy Boxes, or a significant decline in profits. In today’s article, we will highlight the six most important updates that POD sellers need to be aware of in 2026.
Discontinues FBA Prep & Labeling Service in the US
From January 1, 2026, Amazon will officially discontinue its FBA Prep & Labeling service in the US market. This means Amazon will no longer support processes such as packaging, labeling FNSKUs, polybagging, and bundling for shipments sent to Fulfillment Centers in the United States.
From this point on, all FBA products must be fully prepared before shipping to the warehouse. The entire responsibility for prep will rest with the Seller and Supplier. If goods do not meet Amazon’s standards, the shipment may:
- Rejected for warehouse entry
- Exposes the risk of damage or shortages
- No compensation in case of incidents
Even a small error, such as an incorrect FNSKU, missing suffocation warning, or improper packaging, can result in the Seller bearing the entire cost risk.
What should POD Sellers do to avoid risks?
- Prioritize partnering with suppliers who have already pre-ordered according to FBA standards.
- Thoroughly check before syncing products: FNSKU, packaging, polybag, suffocation warning.
- Avoid testing products from suppliers unfamiliar with Amazon US regulations, especially when selling FBA.
Amazon Increases FBA Fees in the US
Starting January 15, 2026, Amazon officially adjusted its FBA fulfillment fees in the US market, with the increase depending on the selling price and product size. Specifically:
- Products under $10: increase of approximately $0.12/unit
- Products $10–$50: increase of approximately $0.08/unit
- Products over $50: increase of approximately $0.31/unit
In addition, Amazon also updated its size and price tiers structure, pushing many bulky or high-priced products to higher fees than before, even without changes in design or materials.
With the POD model, profit margins are already thin. Even a few-cent increase in FBA fees per order is enough to quickly erode profits. Additionally, inexpensive but large-sized products (hoodies, blankets, bedding, etc.) become difficult to scale, making it easy for sellers to fall into a situation where the more they sell, the less profit they make.
What should POD sellers do to avoid this risk?
- Recalculate profit for each SKU, not using a single formula for the entire store.
- Prioritize lightweight, easily foldable products that take up minimal packaging volume.
- Avoid scaling low-margin products just because they seem to be getting consistent orders without controlling costs.
Return Processing Fee
Starting in 2026, Amazon will begin applying a Returns Processing Fee to product categories with high return rates, most notably clothing, footwear, and fashion accessories. This is a significant change, especially for POD sellers focusing on apparel FBA.
For POD apparel, a returned order not only results in a refund but also incurs additional processing fees and fulfillment costs. As a result, a single return can cost a seller more than the profit from 2-3 successful sales, particularly for SKUs with low margins.
What can POD sellers do to reduce their return rate?
- Use realistic mockups, avoiding images that are too “unrealistic" compared to the actual product.
- Provide a clear, easy-to-understand size chart, prioritizing visual representation.
- Honestly describe the material: thickness, elasticity, and fit.
- Avoid vague claims like “oversize fit" if the garment’s fit is not standard.
Reduced Referral & Fulfillment Fees in the EU Market
In 2026, Amazon officially adjusted and reduced referral fees in the EU market for many product categories, including:
- Apparel & Accessories priced ≤ €15: from 8% → 5%
- Home & Living priced ≤ €20: from 15% → 8%
This is considered a positive move, opening up many new opportunities for POD Sellers wanting to expand into the European market. The reduced referral fees make the EU market more accessible, allowing for more effective exploitation of mid-range products and improving profit margins if the right products and strategies are chosen.
However, many Sellers still maintain the habit of using the same pricing for both the US and EU, without recalculating fulfillment, VAT, and marketplace fees separately. This easily leads to serious margin discrepancies, even though referral fees have been reduced.
The right approach for POD sellers when selling in the EU:
- Separate pricing strategies for the US and EU markets.
- Use a separate calculator for each marketplace.
- Prioritize lightweight, moderately priced products to optimize costs when selling in the EU.
Inbound, Placement & Long-Term Inventory Fees: The Silent Margin Killer
In 2026, Amazon continues to expand and tighten fees related to inbound and inventory, including:
- Inbound Placement Fees
- Suboptimal Inventory Fees
- Additional Storage Fees for Inventory Over 12 Months
These fees don’t increase suddenly with each order, but silently accumulate over time, causing many sellers to only realize it when their profits have been significantly eroded.
In addition, many POD sellers tend to test many SKUs simultaneously, not closely monitoring inventory, and allowing failed test SKUs to remain in FBA storage for too long. As a result, storage and inbound costs increase daily, while sellers don’t realize it immediately, leading to silent margin losses.
How should POD sellers manage their inventory?
- Only retain SKUs with stable sales data and good turnover rates.
- Kill early or quickly liquidate test-failed SKUs.
- Prioritize order-based POD models or maintain low inventory levels to reduce cost risk.
Amazon Cost Transparency: No More Room for Guessing
In 2026, Amazon will accelerate the transparency of its entire cost structure through a range of seller support tools, including: FBA Revenue Calculator, Fee & Economics Preview, and Profit Analytics Dashboard. These tools allow sellers to see the full actual cost of each SKU, from fulfillment and referrals to related fees.
Amazon’s cost breakdown means:
- Sellers can no longer sell based on intuition as before.
- Any errors in fee calculation lead to incorrect selling prices.
- Incorrect fee → incorrect pricing → losses from the start.
Especially with POD, where profit margins are thin, skipping the fee verification step can render the entire scaling campaign meaningless.
How should POD sellers change their approach?
- Thoroughly check fees before launching any product.
- Review fees before scaling, especially when prices or markets change.
- Use fee data as a mandatory criterion to decide whether to keep or remove products.
Conclusion
In 2026, Amazon will force POD sellers to be more systematic in everything from product and fulfillment to pricing. In the context of rising fees and stricter regulations, choosing the right products and Amazon-standard POD partners will be a decisive factor in maintaining profitability and sustainable scaling. If you’re unsure which supplier to choose to optimize your Amazon business, Merchize is a perfect choice. Merchize offers a POD ecosystem with FBA-ready features, competitive base costs, and optimized fulfillment solutions for both the US and EU markets. Merchize’s experienced support team is always ready to assist sellers in any situation, so don’t hesitate to contact them if you need advice or have any questions.
