FBA Fees Got You Down? 7 Smart Ways to Stay Profitable in 2025

With rising Amazon FBA fees, many sellers struggle to maintain margins. So how can you stay profitable without constantly raising the price of your products? This post explores cost-cutting tactics, alternative fulfilment strategies, and key metrics to monitor and protect profitability. Let’s dive in.

1. Optimise Product Dimensions & Packaging

Your basic FBA fees are one thing, but have you considered your packaging? You can avoid oversized fees by redesigning packaging to fit within standard-size tiers and reduce weight. Amazon also offers, in their bid to be more environmentally friendly and reduce waste, the option to ship in your own packaging. Not only can this save costs, it gives you a chance to raise brand awareness with personalised designs.

2. Audit Your FBA Fees Regularly

Finding ways to save money is made easier with tools such as Amazon’s Fee Preview. This tool allows you to search for, view and understand the estimated fulfilment fees for products in your inventory. It can help identify discrepancies in size or weight that could cost you extra. It’s important to note that the fees shown are only estimates based on the list price, shipping cost and data they have available on the system.

3. Leverage Multi-Channel Fulfilment (MCF) or 3PLs

For slower-moving or non-core SKUs, consider outsourcing fulfilment to third-party logistics providers. Although it does mean another branch to the selling machine, it can help reduce your reliance on FBA. This can optimise your supply chain, ultimately reducing costs and improving efficiency.

4. Improve Sell-Through Rate & Inventory Turnover

Overstock penalties are essentially long-term storage fees. These are applied for inventory held for over 365 days. What does this mean for you? Well, it essentially means increased storage costs and potentially has a negative impact on your rankings on Amazon. We all know how important a high ranking is for making sales, so anything that hinders that should be addressed immediately.

Keep your inventory in check by forecasting demand accurately, particularly during seasonal highs, and use restock limits wisely to avoid overstock penalties.

5. Increase AOV (Average Order Value)

Increasing your Average Order Value can help you spread fulfilment costs over more revenue. So what’s the best way to increase AOV on Amazon without having to spend more on ads?

As well as the obvious limited-time offers or discounts that you can apply, take a look at creating Virtual Bundles, or Virtual Kits (US), with your products. Bundles allow you to group 2 or 3 specific products together, increasing your chances of selling more items per transaction. The most efficient way of creating Bundles is by grouping products in your range that complement each other. See the below example – two different products that both fall under skincare are promoted together to encourage further sales, improving the AOV. To find out more about Amazon Virtual Bundles, take a look at our post here.

6. Lower Return Rates with Better PDP Content

Customer returns can be costly. To set customer expectations and avoid returns, it’s important to ensure your listing is honest and accurate. Invest in high-quality images, detailed descriptions and FAQ sections, and look into increasing your reviews. Reviews need to be legit. Amazon takes a strong stance on fake reviews, and doctoring them or offering rewards in return for reviews will do you no favours. It could negatively impact your ranking or even get your account suspended.

So how can you get reviews without spending any money? Take a look at Amazon Vine, a programme where you can submit products to be reviewed by reliable, honest customers. You can enrol up to two products per parent ASIN and get up to two quality reviews for free, or you can pay £60 for up to 10, or £140 for up to 30. It’s certainly worth trying the free options, and participating in Amazon Vine can improve sales by up to 30%.

7. Monitor & Optimise Contribution Margin

Last but by no means least, you should be monitoring each product’s overall costs regularly. Things can change at the drop of a hat, so focus on SKU-level profitability by regularly analysing the cost of goods sold (COGS), FBA fees and ad spending to ensure each product contributes positively to the bottom line.

So, with rising FBA fees year on year, there are 7 smart ways to stay profitable in 2025.

Head to our blog for more great tips for selling on Amazon.