Amazon 2025 Fees Update: Amazon Promotion Fee Changes
Amazon has unveiled a shift in its promotional fee model, replacing fixed costs with performance-based pricing for Lightning Deals, Best Deals, and Coupons.
Effective June 2, 2025, these changes — announced alongside updates to Prime Day fees — will force sellers to rethink their promotional strategies to protect margins. Here’s a breakdown of the updates and actionable insights to stay profitable.
Amazon's New Fee Structure: What’s Changing?
Amazon’s revamped model prioritizes performance, rewarding high-volume sellers while raising costs for those with lower conversion rates.
1. Lightning Deals & Best Deals
Old Fees: Fixed costs ($150 for Lightning Deals, $300 for 7-day Best Deals).
✅ New Fees: $70/day + 1% of sales from the deal.
For example, a 14-day deal now costs $980 in fixed fees alone ($70 × 14) plus up to $2,000 in sales-based fees. That’s a big jump from the old flat rates.
2. Coupons
Old Fees: $0.60 per coupon redeemed.
✅ New Fees: $5 fixed fee per coupon + 2.5% of coupon-driven sales.
Example: A coupon that generates $4,000 in sales will cost $5 (fixed) + $100 (2.5% of sales) = $105 total. That’s significantly higher than the old $0.60 per redemption.
3. Prime Exclusive Discounts (PEDs)
Fees for Prime Day 2025 promotions are doubling from $50 to $100 per campaign.
While Amazon frames these changes as “performance-based opportunities,” sellers express mixed feelings:
High-volume brands welcome the flexibility, noting that “the 1% sales fee is a fair trade for extended visibility”. Smaller sellers, on the other hand, are worried the new fees could hurt niche products that attract loyal but smaller audiences.
Why Amazon Is Doing This & What This Means for Sellers?
This shift is part of Amazon’s 2025 plan to keep core services stable (e.g., no FBA fee increases) while transferring costs to optional tools like promotions. What can be done to remain competitive?
1. Higher Costs, Especially for Smaller Sellers
Low-volume products will feel these fees the most. For example, the $5 fixed coupon fee can eat away at margins for slower-selling items. Prime Day promotions also require a closer look at your ROI to see if participation is worth it.
2. Flexibility ≠ Profitability
You can now run deals for 1–14 days (except during Prime Day), but longer campaigns come at a higher risk. For instance, a 14-day deal can cost $2,980, including the cap on variable fees. That’s far beyond the previous $300 flat fee.
- Winners: High-volume sellers with strong conversion rates. For products that sell hundreds of units daily, the 1% sales fee is minor.
- Losers: Sellers of expensive products (e.g., $200+) face bigger challenges since the 2.5% coupon fees add up fast.
How to Stay Ahead
Here’s how you can tweak your strategy to make these changes work in your favor.
1. Adjust Your Pricing and Discounts
Raise your base price and use coupons instead of price reductions. For example, an item priced at $24.99 could be bumped to $29.99, with a $5 coupon offered. This makes customers feel like they’re getting a deal while you keep your margins intact.
2. Shorten Your Campaigns
Instead of running long deals, consider shorter ones (1–3 days) during high-traffic periods like weekends. This keeps fixed fees lower while still boosting visibility.
3. Pair Promotions with PPC Campaigns
Boost your promotion performance by syncing it with strong PPC campaigns. For example, use high-performing keywords in your ads during a Lightning Deal.
4. Review Your Margins Now
Amazon suggests maintaining at least a $12/unit net margin to survive fee fluctuations. If you sell low-margin items, consider cost-cutting strategies like bundling products or reducing packaging expenses.
To succeed with the new fee structure, you need a solid plan. Remember, this isn’t the end of running deals on Amazon – it’s the end of guesswork. Sellers who use data wisely and adapt quickly will win in the promotions game.
