FBM Policy Updates
All Amazon fbm policy policy changes and updates for US and Canada sellers. 6 updates tracked.
Amazon and USPS Reach New Delivery Deal: 20% Volume Cut Instead of Planned Two-Thirds Reduction
Amazon and the U.S. Postal Service signed a revised delivery agreement on April 6, 2026, in which Amazon will reduce USPS package volume by roughly 20%—far less than the two-thirds cut Amazon had threatened earlier in the year. USPS will continue handling approximately 1 billion Amazon packages annually, preserving about $6 billion in revenue for the agency. While the deal averts a USPS financial crisis, the 20% volume reduction still means USPS must spread its fixed infrastructure costs across fewer packages, likely pressuring it to raise rates for third-party shippers—including FBM sellers—who depend on it for affordable last-mile delivery.
Read summary →USPS Adds 8% Fuel Surcharge on Package Shipping Starting April 26
The U.S. Postal Service announced a temporary 8% price increase on competitive package products — including Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select — effective April 26, 2026 through January 17, 2027. The surcharge is driven by a 40% spike in global crude oil prices and comes on top of a 7.8% general USPS rate increase already implemented in January 2026, creating a cumulative year-over-year cost jump of nearly 16% for high-volume shippers. FBM sellers who rely on USPS for affordable ground shipping face immediate margin pressure.
Read summary →Amazon Shop Direct Opens to External Merchants via Product Feed Integration
Amazon expanded its Shop Direct program by opening product feed integration to all merchants through three authorized syndicators: Feedonomics, Salsify, and CEDCommerce. The program surfaces merchant products inside Amazon Search and the Rufus AI shopping assistant, but directs buyers to complete checkout on the merchant's own website. Sellers operating their own D2C sites can now gain Amazon-level visibility without listing products for FBA or marketplace fulfillment.
Read summary →Amazon Shifts OTDR Enforcement to Item Level for Seller-Fulfilled Orders
Amazon changed how it enforces the 90% On-Time Delivery Rate (OTDR) threshold for seller-fulfilled orders. Previously, falling below 90% triggered deactivation of the seller's entire catalog. Starting February 28, 2026, Amazon now identifies the specific listings most responsible for OTDR failures and deactivates only those listings — leaving the rest of the catalog active. Full account deactivation remains possible for repeated or severe violations.
Read summary →FBM Refund Processing Window Extended to 4 Calendar Days
For Fulfilled by Merchant orders, Amazon extended the refund processing window from two business days to four calendar days, giving FBM sellers slightly more time to process refunds before Amazon auto-issues them.
Read summary →Amazon Tightens Seller Fulfilled Prime: Trial Limits, Monthly Volume Minimums, and Size-Tier Evaluation
Amazon overhauled Seller Fulfilled Prime program rules effective June 29, 2025, adding several new operational restrictions. Sellers are now capped at three SFP trial attempts per calendar year — burning all three locks them out until January 1. Once enrolled, sellers must ship at least 100 Prime-eligible packages each calendar month, spread throughout the month, or face a reduced daily Prime order volume cap. Performance metrics are now evaluated separately by size tier, so poor OTDR in one tier no longer jeopardizes Prime eligibility across all product categories.
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