Amazon seller news · Fees · Announced 3 August 2023

Amazon Replaces Small and Light with Low-Price FBA Rates

Announced by Amazon on 3 August 2023, effective 26 September 2023. Cheaper fees for every low-priced item — and possibly higher ones for former Small and Light products.

Last updated: 19 September 2026

Historical update: this article covers an Amazon announcement from 3 August 2023. Amazon's fees, rules and programmes may have changed since — check Seller Central for the current position before acting on it.

In brief: on 26 September 2023, Amazon closed its FBA Small and Light programme and replaced it with Low-price FBA rates. Instead of needing to enrol, every item priced at or below the threshold (VAT included) — £10 in the UK — gets the cheaper rate card automatically, with normal FBA delivery speeds. New Small and Light enrolments stopped after 14 September 2023. Items never enrolled in Small and Light but under the threshold paid less; some formerly enrolled items paid more, in exchange for faster delivery.

Low-price FBA thresholds (VAT included)

Store Low-price FBA applies at or below
UK £10
Germany €11
France, Italy, Spain, Netherlands €12
Sweden SEK 140
Poland PLN 55

These matched the old Small and Light price limits.

Who paid more or less

  • Low-priced items not in Small and Light: fell from standard FBA fees to Low-price rates — a saving.
  • Items already in Small and Light: moved to Low-price rates, which could be higher than their old fees.
  • Items above the threshold: no change.

What happened next

The Low-price FBA threshold was later raised — to £20 in the UK from 2026 — see the 2026 fee changes.

A worked example

A seller sells 5,000 phone cases a month at £8.99 that were never in Small and Light. If the Low-price fee is 40p lower per unit than the standard FBA fee for that size, the saving is £2,000 a month (5,000 × £0.40). A seller whose cases were already in Small and Light might see a small rise instead. Check the actual rate cards for your size tier.

What it means for your bookkeeping

  • Fee changes mid-month. Settlements spanning 26 September 2023 mixed old and new rates; compare per-unit fees before and after rather than month totals.
  • Price changes can move the fee. Pricing just above the threshold loses the lower rate, so the margin effect of a price change includes the fee.
  • VAT in 2023. Fees billed then used the reverse charge for UK VAT-registered sellers — see VAT on Amazon fees.

How TrueBooks helps

TrueBooks posts FBA fees from every settlement to their own account in Xero with the right UK VAT for the date, and its analytics show fee ratios by marketplace, so rate-card changes are easy to spot. See the Amazon Xero integration.

Source: Amazon Seller Central announcement, 3 August 2023. TrueBooks is independent and not affiliated with Amazon. General information, not tax or legal advice.


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