FBM Policy Updates
All Amazon fbm policy policy changes and updates for US and Canada sellers. 10 updates tracked.
Amazon Will Take Over Handling-Time Settings for FBM SKUs That Consistently Ship Faster Than Stated, Starting June 29, 2026
Amazon is tightening how it enforces handling-time accuracy for seller-fulfilled (FBM) listings, with the change taking effect June 29, 2026. Handling time is the period between when a customer places an order and when the seller hands the package to a carrier, and Amazon uses it to calculate the delivery dates shoppers see. Under the update, Amazon will flag SKUs that are consistently shipped at least one day faster than their stated handling time and require sellers to update those SKUs within 30 days. Sellers can comply either by enabling Automated Handling Time, which sets the window based on recent shipping history, or by keeping accurate manual SKU-level handling times. If a seller does not provide an accurate handling time, Amazon will start managing the affected SKUs on the seller's behalf and provide late shipment rate protection for 180 days. The policy applies to professional-plan sellers and excludes custom, handmade, and bulky less-than-truckload shipments.
Read summary →Amazon Tightens Seller Fulfilled Prime Delivery-Speed Requirements — Higher One- and Two-Day Thresholds Take Effect July 6, 2026 (Announced May 26, 2026)
Amazon is raising the minimum delivery-speed thresholds that Seller Fulfilled Prime (SFP) sellers must hit to keep the Prime badge on their seller-fulfilled listings, effective July 6, 2026. For standard-size items, sellers must show a one-day delivery promise on at least 40% of Prime customer page views (up from 30%) and a two-day promise on at least 75% (up from 70%); the five-day threshold stays at 90%. Oversize items move to 15% one-day (up from 10%) and 80% five-day, and extra-large items move to 25% two-day (up from 15%) and 60% five-day. Amazon said it will launch a new tool in September 2026 that lets sellers enter shipping times, weekend shipping availability, and cut-off times at the individual delivery-zip-code level, feeding those inputs directly into Amazon's delivery-estimate calculation. As a transition cushion, weekends are excluded from the speed-metric evaluation until October 17, 2026, after which weekends are folded back into the calculation — though sellers must still fulfill weekend orders during that window. Amazon scheduled support webinars for June 8 and June 15, 2026.
Read summary →USPS Lowers Dimensional-Weight Divisor From 166 to 139 — Bulky, Lightweight Packages Cost More Starting July 12, 2026
The U.S. Postal Service is lowering its dimensional-weight (DIM) divisor from 166 to 139 across all domestic competitive products — USPS Ground Advantage, Parcel Select, Priority Mail, and Priority Mail Express — effective July 12, 2026. Billable weight is calculated as a package's volume divided by the divisor, so a smaller divisor produces a higher dimensional weight, making large but lightweight packages more expensive to ship even though published base rates stay largely unchanged. USPS frames the move as aligning its DIM pricing with industry standards (UPS and FedEx already use a 139 divisor for commercial rates). FBM and Seller Fulfilled Prime sellers who ship bulky, low-density items via USPS will see higher per-label costs, stacking on top of the 8% USPS fuel surcharge in effect since April 2026.
Read summary →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 →UPS Discontinues Air and Ground Shipping Documents (ASD/GSD Prepaid Labels) Effective May 15, 2026 — FBM Sellers Have Until Dec 31, 2026 to Use Existing Labels
Amazon notified merchant-fulfilled sellers via a Seller Central forum announcement that UPS is discontinuing the ability to order Air Shipping Documents (ASD) and Ground Shipping Documents (GSD) — also known as Prepaid Labels — effective May 15, 2026. UPS will continue to accept shipments using ASD/GSD labels until December 31, 2026, giving sellers a transition window to use up labels already in hand. The notice was sent to sellers whose accounts show ASD/GSD orders in 2025. Amazon recommends that affected sellers transition to digital shipping solutions such as Amazon Buy Shipping (which offers UPS, USPS, and FedEx rates with built-in tracking confirmation and account-health protection), direct carrier purchases from UPS/FedEx/USPS websites, third-party shipping software, or shipping integrators.
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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