What happened with Feng Logistics in June 2026?

Feng Logistics, a major freight forwarder backed by SF Express and DHL, halted operations due to financial disputes and unpaid wages, stranding massive volumes of Amazon FBA-bound shipments from China and causing widespread delays for cross-border sellers.

What are the new FBA fees effective June 1, 2026?

New fees include increased per-unit costs for standard-size items, a peak adjacency surcharge, and higher low-inventory-level penalties. The low-inventory fee averages $1,840 per month for affected sellers when supply falls below 28 days.

How can sellers prepare for Prime Day 2026?

Sellers must meet tight deadlines: deal submissions by June 9, minimal inventory splits by May 27, and optimized splits by June 5. Given the Feng Logistics collapse, securing alternative freight carriers is critical.

What is the Seller Performance Dividend program?

It is a tiered FBA fee rebate program launched in late May 2026 for select professional sellers, rewarding high sales velocity, low return rates, and consistent in-stock levels as a response to competition from Walmart and TikTok Shop.

Amazon FBA Seller Crisis 2026: Fee Hikes, Buy Box Overhaul, and Logistics Collapse

Q: How did Amazon change the Buy Box algorithm in 2026?

In late April 2026, Amazon introduced a new "Seller Velocity Score" that factors in unit velocity, refund-to-order ratios, and inventory depth, deprioritizing mid-tier sellers and causing many to lose Buy Box ownership.

What Is Happening to Amazon FBA Sellers in June 2026?

Amazon FBA sellers are facing a perfect storm in early June 2026. Multiple simultaneous changes—from a catastrophic logistics collapse to unannounced fee hikes and a Buy Box algorithm overhaul—are reshaping the landscape for thousands of businesses. The key change is that Amazon is simultaneously tightening cost structures, deprioritizing mid-tier sellers, and introducing performance-based rewards, all while a major freight forwarder's collapse disrupts supply chains ahead of Prime Day.

How Did the Feng Logistics Collapse Impact FBA Shipments?

On approximately June 4-6, 2026, news broke that Feng Logistics, a major freight forwarder backed by SF Express and DHL and closely tied to T-platforms, had halted operations due to financial disputes and unpaid wages. This shocking logistics crisis stranded massive volumes of Amazon FBA-bound shipments from China, causing widespread delays for cross-border sellers. Many sellers now face inventory shortages just weeks before Prime Day, forcing them to scramble for alternative carriers or risk stockouts. The collapse highlights the fragility of relying on a single freight partner in the volatile cross-border e-commerce ecosystem.

What Changed in Amazon's Buy Box Algorithm in 2026?

In late April 2026, Amazon quietly rolled out an unannounced update to its Buy Box algorithm that is quietly crushing mid-tier sellers. The change introduced a new "Seller Velocity Score" that incorporates unit velocity, refund-to-order ratios, and inventory depth. Early data shows that mid-tier sellers have seen dramatic drops in Buy Box ownership, often losing the featured offer to larger or more agile competitors. This algorithm shift appears designed to push sellers toward higher ad spend and more consistent inventory levels, effectively penalizing those who cannot maintain top-tier metrics.

What Are the New FBA Fee Changes Effective June 1, 2026?

Amazon's latest FBA fee structure, effective June 1, 2026, is reshaping FBA economics for mid-size sellers. Key changes include:

Increased per-unit fees for standard-size items (1-2 lb).
A new "peak adjacency" surcharge during periods near high-demand events.
Higher low-inventory-level penalties (fully enforced since May 1).

Additionally, the low-inventory-level fee is fundamentally altering reorder math. When an ASIN's supply falls below 28 days of forward demand, sellers are charged an average of $1,840 per month in penalties. This forces many to carry higher safety stock or use Fulfilled by Merchant (FBM) as a buffer.

Fee Change	Impact on Mid-Size Sellers
Per-unit fee increase (1-2 lb)	Higher cost per unit, squeezing margins
Peak adjacency surcharge	Additional costs during Prime Day and holidays
Low-inventory-level fee	Encourages overstocking; average $1,840/month penalty
Seller Performance Dividend (rebate)	Rewards high velocity, low returns, in-stock consistency

How Did Amazon's Multi-Channel Fulfillment Overhaul Affect Sellers?

Amazon's Multi-Channel Fulfillment (MCF) overhaul, effective April 1, 2026, has drastically increased costs for non-Amazon orders. According to a recent analysis, the average MCF cost per shipment surged 127%, leading 85% of sellers to explore alternative fulfillment strategies. Small and mid-size sellers are especially affected, many moving to FBM or Walmart Marketplace. The overhaul effectively discourages sellers from using Amazon for orders placed on other channels, representing a major shift in fulfillment strategy.

What Are the Prime Day 2026 Deadlines and Dates?

Amazon has set Prime Day 2026 for June 23–26, with extended deal submission deadlines to June 9. FBA shipment cutoff dates were tightened: minimal inventory splits were required by May 27, and optimized splits by June 5. Sellers are urged to check the official Amazon help page for exact cutoffs. The compressed timeline, combined with the logistics crisis, means many sellers may struggle to replenish inventory in time.

What Is Amazon's New AI-Generated Product Image Feature?

Starting June 3, 2026, Amazon began rendering AI-generated images for non-existent products based on search queries in the US mobile app. This feature could change how buyers discover items and affect seller visibility strategies. While still early, it may force sellers to optimize not just their own images but also understand how Amazon's AI creates alternative product visualizations.

What Is the New Seller Performance Dividend Rebate Program?

In late May 2026, Amazon quietly launched a tiered FBA fee rebate program called the Seller Performance Dividend. Available only to a limited set of professional sellers, it rewards high sales velocity, low return rates, and consistent in-stock levels. This program is seen as a strategic response to competition from Walmart Marketplace and TikTok Shop, incentivizing the behaviors Amazon most values. However, the selective nature of the program means many mid-tier sellers may not qualify, further widening the gap between top performers and the rest.

How Should Sellers Adapt to These Changes?

To survive the June 2026 turmoil, sellers should consider the following:

Diversify logistics partners to avoid reliance on a single forwarder, especially given the Feng collapse.
Increase safety stock to avoid low-inventory fees and maintain Buy Box eligibility.
Monitor Buy Box ownership closely and adjust pricing or ad spend to compensate for algorithm shifts.
Evaluate FBM or hybrid fulfillment to offset MCF cost increases and inventory penalties.
Focus on seller metrics (returns, velocity, stock depth) to qualify for the Seller Performance Dividend.

What Does the Future Hold for Amazon FBA Sellers?

The simultaneous nature of these changes suggests Amazon is rapidly evolving its marketplace to favor high-volume, low-return sellers with deep inventory. Mid-tier sellers are caught in a squeeze: higher costs and algorithm penalties on one side, selective rewards on the other. As Prime Day approaches, those who can adapt quickly will survive, while others may be forced out. The landscape of Amazon FBA in 2026 is more competitive and expensive than ever.