Overview of Amazon’s 2026 Policies: Opportunities & Risks for Sellers

In 2026, Amazon is entering a phase of comprehensive policy tightening, covering everything from delivery SLAs and account performance to supply chain transparency and fulfillment operations. These changes are directly impacting POD sellers, especially those selling in the U.S. market. This article provides POD sellers with a clear overview of Amazon’s 2026 policies, analyzes the opportunities available to sellers who operate with a structured and compliant approach, and highlights the major risks that can easily lead to performance drops or account restrictions.

An Overview of Amazon’s Policy Changes in 2026

Since the beginning of 2026, Amazon has implemented a series of pivotal adjustments centered around three core pillars: Fulfillment operations, customer experience, and artificial intelligence (AI).

Increased FBA Fulfillment and Referral Fees

Starting January 15, 2026, Amazon has implemented a new FBA fee structure in the U.S. market, with an average increase of $0.08 per unit. However, a closer look at the pricing tiers reveals a significant profit squeeze for POD sellers:

• Products under $10: This tier typically includes low-priced T-shirts or stickers. Fees increase by up to $0.12 per unit, a substantial jump given the already thin margins in this segment.
• Products priced from $10 to $50: Fees increase by $0.08 per unit.
• Products over $50: Fees rise sharply by $0.31 per unit.

Notably, the Size/Price Tier structure has also been adjusted. Heavier or bulkier POD items such as hoodies, bedding, or large-format canvas prints are being pushed into higher fee tiers even when their actual physical dimensions remain unchanged.

Discontinuation of FBA Prep & Labeling Services

The most disruptive change is that, starting January 1, 2026, Amazon has officially discontinued FBA Prep & Labeling services in the U.S.

• Risk: Previously, sellers could pay Amazon to apply FNSKU labels or polybag products. Going forward, all preparation steps must be completed 100% before inventory arrives at Amazon warehouses.
• The cost of mistakes: Even a minor error such as a missing suffocation warning on a polybag or a blurred FNSKU label can result in error handling fees ranging from $0.50 to $2 per unit, or even lead to the entire shipment being rejected.

For Vietnamese POD sellers, choosing a supplier or fulfillment partner that strictly follows Amazon-compliant preparation processes is now a critical, make-or-break factor.

Return Processing Fees and the New Reimbursement Framework

The Apparel category has always had a high return rate (averaging 15–20%). Starting in 2026, Amazon has tightened controls further by introducing a new Return Processing Fee. Instead of being calculated based on the selling price, this fee is now tied to Amazon’s actual operational costs turning every returned order into a real financial burden for sellers.

In addition, the reimbursement policy for lost or damaged inventory has become more restrictive. Amazon now requires extremely transparent cost data from sellers. At the same time, the star-only review system (ratings without written feedback), introduced in 2025, continues to be tightened. This makes disputing A-to-Z Guarantee claims nearly impossible unless sellers can provide flawless operational evidence.

Stricter Inbound Placement, Long-Term Storage Fees, and Inventory Limits

Amazon is aggressively optimizing warehouse capacity through a series of financial levers:

• Inbound Placement Fee: If you ship inventory to a single fulfillment center to save on U.S. domestic shipping costs, Amazon will charge an inbound placement fee equal to 20-40% of the inventory value. To avoid this fee, sellers must split shipments across at least 4-5 different fulfillment centers nationwide.
• Long-Term Storage Fee: Starting January 16, 2026, storage fees for inventory held longer than 12 months will increase sharply.
• Inventory Limits: Inventory storage limits have been reduced from 6 months to 5 months of coverage. This creates significant pressure during Peak Season (Q4), forcing sellers to forecast demand with extreme accuracy to avoid having inbound inventory quotas frozen in the middle of the selling season.

Transparency Tools: FBA Revenue Calculator & Profit Analytics

To help sellers better control their performance, Amazon has launched a new dashboard integrated with AI-powered Profit Analytics. This tool allows sellers to analyze each SKU in detail and see exactly how much profit remains after all newly introduced fees such as Inbound Placement, Prep, and Return Processing fees are deducted.

Real-world data: According to surveys from major fulfillment providers, up to 30% of POD sellers are projected to lose 10–15% of net profit in the first quarter of 2026 if they fail to proactively optimize their SKUs and packaging processes starting now.

Advantages of U.S.-Based Sellers in the Context of Amazon’s 2026 Policies

Tightening policies does not mean Amazon is “closing the door” on sellers. On the contrary, 2026 creates more opportunities for POD sellers who operate in a structured, compliant, and professional manner.

Breaking SLA Barriers and the Pressure of Ultra-Fast Delivery

Amazon’s 2026 requirements go beyond fast shipping—they demand absolute accuracy at every time checkpoint. U.S.-based sellers hold a natural advantage:

• Shorter lead times: Domestic U.S. production and fulfillment eliminate customs clearance and cross-border transit delays entirely. POD orders can be printed and shipped within 24-48 hours.
• Real-time tracking synchronization: With domestic carriers such as USPS, UPS, and FedEx, tracking numbers are updated instantly within Amazon’s system. This helps maintain a 100% Valid Tracking Rate (VTR), allowing sellers to retain the Buy Box even during the strictest algorithm audits.
• Elimination of “order failure” risks: U.S. sellers face far fewer order cancellations caused by processing delays one of the most severe violations that can trigger account strikes or restrictions in 2026.

Legal Safeguards and Stronger Account Appeal Capabilities

In 2026, Amazon conducts regular AI-driven account audits. U.S.-based sellers gain a significant advantage when it comes to appeals thanks to:

• Document transparency: U.S. business credentials such as LLC registration, EIN, warehouse addresses, and invoices from domestic U.S. print facilities carry a high level of credibility with Amazon’s Performance team.

• Clear proof of origin: When flagged for intellectual property or quality issues, U.S. sellers can easily provide standardized invoices from U.S.-based printing material suppliers. Under Amazon’s 2026 policies, handwritten invoices or edited PDF files are no longer accepted Amazon prioritizes sellers operating through verifiable, locally established business entities.

Staying Ahead of the “Local Trust” Trend and the Shift Away from Cross-Border Products

U.S. consumer behavior in 2026 has changed significantly. Customers are no longer just buying products they are buying peace of mind:

• “Made in USA” badge: Listings labeled as manufactured in the U.S. or fulfilled from U.S.-based warehouses achieve conversion rates up to 40% higher than products shipped from overseas.
• Stronger trust in after-sales support: Customers believe returns and exchanges are easier with domestic sellers. This helps reduce A-to-Z Guarantee claims, which remain a major concern for POD sellers under Amazon’s highly buyer-protective 2026 policies.

The ability to scale at lightning speed-even during peak seasons

While cross-border sellers scramble to deal with port congestion or flight delays during Q4, U.S.-based sellers operate with far greater ease:

• Flexible inventory flow: Inventory can be quickly rebalanced across FBA warehouses or shifted to FBM fulfillment when needed.
• Capacity control: Working directly with U.S. print facilities allows sellers to accurately assess real production capacity, preventing order backlogs when demand spikes by 500–1,000% during major events such as Prime Day or Christmas.

A Long-Term Mindset

Amazon’s strategy from 2026 onward is essentially about “cleaning the house” removing short-term, opportunistic sellers from the marketplace. The company is building an ecosystem that prioritizes stable partners with high lifetime value.

U.S.-based sellers who operate with structured processes, fulfill their tax obligations, and comply with U.S. labor safety and environmental regulations are exactly the type of partners Amazon aims to retain.

• Playing the long game instead of price wars: Rather than engaging in aggressive price-cutting with low-quality, cheap products, U.S. sellers focus on brand building (Brand Registry 2.0) and leverage their operational advantages to achieve sustainable, long-term profitability.

Major Risks POD Sellers Are Likely to Face in 2026

In the past, the biggest risk for POD sellers was “losing ad campaigns.” In 2026, however, risk has shifted decisively toward operations and account health. Amazon now operates a real-time AI-driven seller behavior monitoring system, where even small, accumulated errors can ultimately become a fatal blow to a business.

Risk 1: Chain-Reaction SLA Violations Caused by Choosing the Wrong Fulfillment Partner

This is the most common and most dangerous risk because it lies largely outside a seller’s direct control. The POD business model depends heavily on its backbone: print fulfillment partners.

• Weaknesses of unreliable fulfillment: In 2026, Amazon strictly enforces a Valid Tracking Rate (VTR) above 95% and a Late Shipment Rate (LSR) below 4%. If a fulfillment partner experiences equipment failures or capacity overload for just 3–5 days, your entire order flow can be delayed.
• Immediate consequences: Once LSR exceeds the threshold, Amazon can automatically remove the Buy Box and cut off all PPC advertising traffic. Even worse, during peak season, delays of just 2–3 days can trigger mass refund requests and one-star reviews, causing your listing to collapse almost instantly.
• Recommendation: Never put all your eggs in one basket. Prioritize fulfillment partners that operate at least two backup facilities in different U.S. states or offer direct API integration with Amazon for automatic, real-time tracking updates.

Risk 2: Account Suspension Due to the “Snowball Effect”

Many sellers tend to underestimate Policy Warning notifications. However, Amazon’s 2026 algorithm operates on a cumulative penalty system.

• AI-driven monitoring: Amazon no longer suspends accounts immediately due to a single problematic order. Instead, its AI tracks behavioral patterns over time.
  Example: Repeated order cancellations due to out-of-stock issues or consistently updating tracking information 12 hours later than committed. When such issues quietly repeat, they gradually push your Account Health Rating (AHR) into the danger zone.
• Seller blind spot: Once AHR reaches a critical level, even a minor customer complaint, such as a claim that an order was not received despite tracking showing Delivered, can become the final straw that triggers account suspension. At that point, appeals become extremely difficult, as Amazon evaluates the entire violation history rather than individual cases.

Risk 3: The “Mass Product Testing” Trap and the Lack of a Tiered Strategy

The habit of “casting a wide net” by uploading thousands of designs to test the market has officially become a double-edged sword in 2026.

• Performance instability: When a store has too many listings with no sales or extremely low conversion rates (CR), Amazon may classify the account as low quality. This lowers the overall Quality Score of the account and drives PPC bid costs up to unreasonable levels.
• Intellectual property review risk: Mass uploading makes it impossible to maintain full control over design content. Under Amazon’s 2026 policies, just one IP violation out of 1,000 designs can trigger a full inventory and cash-flow freeze for investigation.
• Outdated strategy: As Amazon increasingly prioritizes stability, aggressive mass testing causes major fluctuations in performance metrics. Amazon in 2026 demands focus: fewer SKUs, but each one must be high quality, fast to fulfill, and supported by strong customer reviews.

Risk 4: Financial Exposure from Amazon’s Return Policy

Amazon’s 2026 policies introduce automatic, no-questions-asked returns for many POD categories.

• Margin erosion: Even for personalized products, customers are still entitled to refunds if the seller cannot prove that the item matches the product description. Without a quality control (QC) process at the production facility, a return rate of just 10% can already push sellers into losses, as they must absorb Amazon’s newly introduced Returns Processing Fee on top of the refunded order value.

What Should POD Sellers Prepare to Adapt to Amazon’s 2026 Policies?

Amazon’s policy changes in 2026 are not a “barrier,” but rather a filter designed to eliminate unserious players. To become part of the top 20% of market-leading sellers, POD sellers need a structured preparation roadmap across the following four core areas:

A Shift in Mindset

The era of “running ads equals getting orders” is over. In 2026, marketing is only a trigger, while operations and compliance are the foundations that sustain long-term cash flow.

• Operations come first: Even a campaign with a 5.0 ROAS becomes meaningless if your fulfillment system breaks down, leading to late shipments and potential account suspension by Amazon.
• Policies are the mandatory rules of the game: Sellers should allocate at least 20% of their weekly time to reviewing updates from Seller Central. A deep understanding of new fees, such as Inbound Placement Fees and Low-Inventory-Level Fees enables accurate pricing and helps avoid the situation of “selling a lot but seeing no profit at the end of the month.”

Optimizing Fulfillment and Building a Multi-Tier Production System

To meet increasingly strict SLA (Service Level Agreement) requirements, POD sellers must build a “smart production network”:

• Prioritize U.S.-based fulfillment: This is no longer optional if you want to win the Buy Box. Fast delivery from U.S. warehouses is the strongest guarantee of account health.
• Adopt a tiered production strategy: Do not funnel all SKUs into a single workflow. Instead, segment your product catalog into distinct tiers:
  • Low-cost line (Test line): Use cost-competitive print facilities to test new designs, accepting thinner margins in exchange for identifying winning products.
  • Stable line (Scaling line): Partner with high-capacity providers that can commit to sub-48-hour production times to drive volume at scale.
  • Premium line (Brand line): Reserved for core, evergreen products. Use higher-quality fabrics and branded packaging to generate five-star reviews and build long-term customer loyalty.
    

Proactively Managing Risk Through Data Governance

Don’t wait until an Amazon warning email arrives to start worrying. In 2026, sellers need a proactive risk-prevention framework:

• Real-time metric monitoring: Use Profit Analytics tools to track your Account Health Rating (AHR) on a daily basis. If you notice even a 1% decline, immediately review your packaging process or shipping partners.
• Standardize customer support workflows: A-to-Z Guarantee claims can be reduced by up to 80% by proactively sending customers order status updates. In the AI-driven landscape of 2026, leverage integrated chatbots to respond to customer inquiries within 12 hours, even on weekends or holidays.
• Avoid order cancellations: Maintain a small buffer inventory at FBA warehouses for your best-selling SKUs to ensure backup stock is always available, eliminating the risk of cancellations caused by print facility overload.

Building a “Deep Niche” Strategy Instead of Chasing Short-Term Trends

Amazon in 2026 strongly favors stability. Accounts with consistent month-over-month sales are prioritized for traffic allocation over those that “skyrocket” on short-lived trends and then disappear.

• Develop a deep, focused catalog: Instead of selling everything from T-shirts to mugs based on every trending topic, concentrate on 2–3 specific niches (for example, pet owner products or gifts for nurses).
• Optimize for profitability: Rather than chasing revenue at all costs, focus on high-ticket POD products such as quilts, canvas shoes, or large-format canvas prints. These items offer margins thick enough to absorb Amazon’s increased fees while still protecting your net profit.

Amazon’s 2026 policies are not barriers designed to eliminate POD sellers, but rather filters that prioritize sellers with strong operational capabilities and a long-term mindset. As Amazon continues to tighten SLAs, account performance standards, and supply chain transparency, POD sellers can no longer rely on fast-selling, poorly controlled fulfillment models as they once did.

Instead, proactively staying up to date with policy changes, optimizing production workflows, choosing the right fulfillment partners, and building a stable sales strategy will determine a store’s ability to survive and grow in 2026 and beyond. For POD sellers targeting the U.S. market, domestic production and fulfillment not only ensure compliance with Amazon’s policies but also create a clear competitive advantage in delivery speed, reliability, and overall customer experience.

Adapting early to Amazon’s 2026 policies is therefore a critical step for POD sellers to maintain healthy accounts, scale safely, and build a sustainable business on Amazon.