Amazon this week announced a modification to how Fulfillment by Amazon (FBA) removal and disposal fees are charged, implementing a per-unit billing system that processes charges as individual items are removed or disposed rather than waiting for entire orders to complete. The change, which takes effect February 15, 2026, alters payment timing without modifying the actual fee rates sellers pay.

According to the announcement posted to Amazon Seller Central on January 29, 2026, the update "aims to give you more visibility into your removal and disposal activities." The modification represents a charge timeline adjustment only, with fee rates for both removal and disposal operations remaining at current levels.

Under the previous system, sellers submitting removal orders for inventory experienced a single consolidated charge after Amazon processed the entire order. A removal order for 100 units triggered one fee transaction once all 100 units completed processing. The updated approach processes individual unit charges as Amazon handles each item, creating a continuous stream of transactions throughout the removal period.

The practical implications emerge most clearly when examining processing timelines. According to Amazon's documentation, disposal orders typically complete within 14 business days but can extend beyond 30 days during peak operational periods. Removal orders present longer processing windows, potentially taking 90 days or more to complete shipment preparation, plus an additional two weeks for carrier delivery to sellers' designated addresses.

A removal order submitted in February for 500 units that takes 60 days to process will generate charges incrementally from February through April under the new system. Previously, this same order would have resulted in a single charge in April when the final units completed processing. The distinction affects sellers managing large-scale inventory adjustments, seasonal transitions, or aging inventory approaching long-term storage fee thresholds.

Cash flow modeling requires recalibration for merchants executing substantial removal operations. Amazon sellers reported sales plummets during recession fears between May and August 2025, with many experiencing 60-80% year-over-year declines while simultaneously facing mounting financial pressure from multiple fee structures and policy modifications throughout the year.

The timing change arrives as Amazon continues adjusting its fee architecture across fulfillment operations. Amazon removed partial shipment splits for standard-size FBA products starting February 20, 2025, requiring sellers to choose between Amazon-Optimized Shipment Splits without fees or Minimal Shipment Splits with associated placement fees. Amazon introduced updated return fees for European sellers effective February 1, 2025, implementing category-specific return rate thresholds and fees.

Transaction monitoring becomes more critical under incremental billing. Sellers can track unit-level charges through the Payments section by accessing Transaction View, which displays individual fee assessments as they occur. The Removal Order Detail Report provides status updates on processing progress, enabling merchants to forecast upcoming charges based on remaining units in active removal orders.

According to Amazon's documentation, no action is required from sellers for this implementation. The system will automatically apply the updated charging methodology to all new removal and disposal orders created on or after February 15, 2026. Orders submitted before this date but still processing will continue under the previous consolidated billing approach.

The fee structure itself maintains existing rates across both removal and disposal operations. Removal fees apply when sellers request Amazon to ship inventory from fulfillment centers back to specified addresses. Disposal fees apply when sellers authorize Amazon to destroy inventory that cannot be sold or returned economically. Both fee types calculate based on product size tiers and dimensional weight classifications that determine per-unit costs.

Sellers managing removal operations during inventory cleanups, seasonal transitions, or aging inventory management face the most significant operational adjustments. The incremental charging model spreads costs over extended periods proportional to processing timelines, contrasting with previous lump-sum billing that concentrated charges at order completion.

The modification intersects with Amazon's broader FBA policy framework. Amazon shifted liability to sellers with new FBA inventory policy that took effect March 31, 2025, fundamentally altering how the company handles damaged inventory within its fulfillment network. The damaged inventory ownership program allows sellers to opt out of Amazon's damage-fault ownership evaluation process, effectively transferring responsibility for Amazon-fault damaged inventory from the platform to merchants.

Processing capacity varies seasonally, affecting removal timeline predictability. Peak periods including fourth-quarter holiday operations and January returns processing can extend disposal order completion beyond standard 14-business-day windows. Removal orders requiring outbound shipment preparation face even longer processing cycles, particularly when inventory resides in distant fulfillment centers or requires consolidation from multiple locations.

Sellers reconciling payments face increased transaction volumes. A single removal order for 1,000 units that previously generated one line item in payment statements will now produce up to 1,000 individual charge entries as units process. This granularity provides detailed visibility into removal progress but increases accounting complexity for merchants managing multiple simultaneous removal operations.

The per-unit charging mechanism creates alignment between physical inventory movement and financial transactions. When Amazon processes unit 1 from a removal order today, the corresponding fee charge appears in the seller's account today. When Amazon processes unit 50 next week, that fee charge appears next week. This synchronization contrasts with previous deferred billing that occurred only after final units cleared processing.

For sellers operating with tight cash flow constraints, the change offers both advantages and complications. Incremental charging eliminates large unexpected fee assessments that could strain payment balances, distributing costs over processing periods. However, the modification also requires sellers to maintain sufficient balance headroom throughout extended removal timelines rather than planning for single large debits.

Inventory management strategies may require adjustment. Sellers previously able to defer removal fee payments by timing order submissions can no longer concentrate charges at preferred billing periods. The per-unit system eliminates timing flexibility, instead tying charges directly to Amazon's processing schedule which sellers cannot control or predict precisely.

The announcement documentation emphasizes that fee rates remain unchanged, isolating the modification strictly to charging timeline. A standard-size item removal previously costing $0.50 per unit continues costing $0.50 per unit. A disposal fee previously assessed at $0.15 per unit maintains the $0.15 rate. The distinction exists purely in when Amazon debits seller accounts relative to physical inventory processing.

Amazon introduced fees for third-party developer API access starting January 2026, marking the end of free access that developers enjoyed since the introduction of Marketplace Web Services in 2009. Third-party software companies that build applications serving Amazon sellers will bear annual subscription fees of $1,400 starting January 31, 2026, plus monthly usage fees based on GET API call volume beginning April 30, 2026.

According to LinkedIn comments on the announcement, seller reactions focused on accounting complexity and cash flow implications. One commenter noted that per-unit charging creates more tedious tracking in financial systems, requiring reconciliation of potentially hundreds of individual line-item charges rather than single consolidated transactions. Another emphasized the change affects forecasting more than total costs, with incremental billing smoothing cash flow spikes during large inventory cleanups.

Fred McKinnon, commenting on the LinkedIn post, stated: "Imagine you remove 100 units - instead of one charge you now get 100 individual charges over hours/days. Many sellers find that more tedious to track in finances." Muhammad Farhan, identified as an Amazon FBA & E-commerce Specialist, characterized the update as "one of those updates where nothing changed, but everything changed," highlighting that incremental charging affects forecasting particularly during seasonal transitions and aging inventory decisions.

The removal and disposal fee modification represents Amazon's latest adjustment to FBA operational parameters. Amazon forces all sellers to use prepaid returns, ending the high-value exemption on February 8, 2026, requiring all US seller-fulfilled orders to use prepaid shipping programs. The policy eliminates previous exemptions for high-value items, creating insurance coverage gaps for premium merchandise.

Sellers operating at scale face proportionally greater impact. A merchant removing 5,000 units over a 90-day processing period will experience continuous fee assessments throughout the quarter rather than a single large charge at period end. This distribution affects quarterly financial planning, particularly for businesses reconciling Amazon operations with broader enterprise accounting systems requiring transaction consolidation.

The fee structure documentation provides specific guidance for sellers monitoring removal activity. The Payments dashboard Transaction View section displays individual unit charges as they post to accounts. The Removal Order Detail Report accessible through Seller Central tracking interfaces shows processing status for submitted orders, indicating which units have completed removal or disposal and which remain in queue.

According to seller forum discussions on Amazon Seller Central, questions emerged regarding fee application when orders are canceled mid-processing. The documentation indicates that if removal or disposal orders are canceled by the system or seller before units process, those units will not incur fees. Charges only apply to units that physically complete removal or disposal operations, regardless of whether the entire order completes.

The transition from consolidated to per-unit billing affects how sellers evaluate removal economics. Previously, merchants could submit large removal orders knowing the fee impact would consolidate at order completion, allowing for single lump-sum budget allocation. The updated system requires maintaining available balance throughout potentially months-long processing periods as charges accumulate incrementally.

Vanessa Hung, commenting on the LinkedIn announcement post, stated: "The operational implication is straightforward: if you're planning large removal orders and you're tracking cash flow tightly, the charges will hit your account progressively as units process, not all at once when the order closes." Hung, identified as an Amazon Account Management professional, emphasized that monitoring becomes more important than action, with unit-level charges spread over weeks making transaction tracking particularly critical during long removal timelines.

The modification represents operational continuity with financial adjustment. Amazon's fulfillment network continues processing removal and disposal orders through existing workflows and timelines. Warehouse operations, carrier coordination, and disposition handling remain unchanged. The distinction exists entirely in when Amazon's billing systems assess charges against seller accounts relative to physical inventory movement.

For sellers managing multiple simultaneous removal operations, the per-unit charging system creates granular transaction streams. A merchant with three concurrent removal orders for 300, 500, and 200 units respectively will see charges from all three orders intermixed in payment statements as individual units process across different timelines and fulfillment centers. This contrasts with previous billing that would have generated three distinct consolidated charges when each order completed.

The announcement timing provides sellers with approximately two weeks advance notice before implementation on February 15, 2026. This window allows merchants to adjust accounting systems, update cash flow forecasts, and communicate changes to finance teams managing Amazon payment reconciliation. Orders submitted before February 15 will complete under previous consolidated billing rules regardless of when processing finishes.

Amazon's documentation emphasizes that sellers can access detailed information about both removal and disposal fee structures through dedicated help pages. The FBA disposal order fees page provides comprehensive rate tables and policy details for items authorized for destruction. The FBA removal order fees page documents rates and procedures for inventory returned to seller addresses. Both resources maintain current rate information as Amazon implements periodic fee structure updates.

The per-unit charging methodology aligns FBA removal and disposal billing with Amazon's broader transaction pattern of immediate fee assessment. Fulfillment fees, referral fees, and storage fees all process as transactions occur rather than in batched consolidated charges. The removal and disposal fee change extends this immediate billing approach to previously deferred fee categories.

According to Seth Hurd, commenting on the LinkedIn announcement, the modification represents "Good change for cash flow visibility. Same cost, but spreading charges makes planning large cleanups easier." Hurd, identified as Founder at Brand Expand, highlighted that incremental billing eliminates concentrated financial impacts from large inventory adjustments.

The transition affects sellers differently based on removal order frequency and scale. Merchants executing small periodic removal orders for damaged units or customer returns will experience minimal operational change, as few-unit orders generate limited transaction volumes regardless of billing methodology. Sellers conducting large-scale seasonal inventory resets or aging stock removals face the most significant adjustment in payment pattern management.

Amazon's Seller Central interface provides tools for tracking both order status and financial transactions. The combination of Removal Order Detail Reports showing physical processing progress and Payment Transaction View displaying individual charges enables sellers to correlate unit movement with fee assessment in real time. This visibility supports more accurate cash flow forecasting during active removal operations.

Timeline

Summary

Who: Amazon announced the policy change affecting all sellers using Fulfillment by Amazon (FBA) services globally, particularly impacting merchants managing large-scale removal operations, seasonal inventory adjustments, or aging stock approaching long-term storage fee thresholds.

What: Amazon modified the charging methodology for FBA removal and disposal fees from consolidated billing at order completion to per-unit charging as individual items are processed. The fee rates themselves remain unchanged, with the modification affecting only the timing of when charges appear in seller accounts. Sellers will now see individual unit charges in Payment Transaction View as Amazon processes each item rather than receiving single consolidated charges when entire orders complete.

When: The announcement was posted to Amazon Seller Central on January 29, 2026, with the new per-unit charging system taking effect February 15, 2026. Orders submitted before February 15 will continue under the previous consolidated billing approach regardless of when processing completes. Disposal orders typically process within 14 business days but can extend beyond 30 days during peak periods, while removal orders can take 90 days or more plus additional carrier delivery time.

Where: The change applies to all FBA removal and disposal orders processed through Amazon's fulfillment network globally. Sellers can monitor charges through Payments Transaction View and track removal order status through the Removal Order Detail Report accessible via Seller Central. The modification affects inventory stored across Amazon's fulfillment center network regardless of geographic location.

Why: According to Amazon's announcement, the update aims to provide sellers with "more visibility into your removal and disposal activities." The per-unit charging system synchronizes financial transactions with physical inventory movement, creating real-time fee assessment as units process rather than deferred billing at order completion. The modification affects cash flow planning for sellers managing large removal operations, distributing charges over processing periods rather than concentrating them at order completion, while maintaining existing fee rate structures unchanged.

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