Why Amazon Shipping Is So Expensive in 2025: Cost Breakdown for Global Sellers

Amazon shipping is more expensive in 2025 because your total landed cost now stacks higher across multiple layers: increased carrier base rates and fuel surcharges, stricter dimensional weight (DIM)¹ billing, premium last‑mile delivery costs, Amazon network changes to FBA fees, and international extras like customs brokerage, import duties and tariffs, and compliance. For cross‑border sellers, route choice (air vs ocean), DDP vs DDU, and fulfillment strategy (FBA vs FBM) directly determine whether these costs compound or can be engineered down.

The 2025 cost stack: what is inside “Amazon shipping”

For a global Amazon seller, “shipping” is not a single fee. It is a layered stack you pay from factory to customer:

Origin handling: pickup, export documentation, palletization
Main transit: ocean consolidation (LCL/FCL)² or air cargo/express
Destination handling: port/airport fees, customs brokerage, duties/taxes, exams
Amazon inbound: labels, appointments, FBA receiving, placement, drayage/line‑haul
Storage: monthly storage, peak multipliers, aged inventory surcharges
Outbound (to customer): pick/pack, weight/dimensional tiers, last‑mile carrier charges
Returns: processing, refurbishment, disposal or removal, reverse logistics

A practical way to think about 2025 costs: every handoff adds a surcharge, and every cubic centimeter in your packaging risk is punished through DIM.

Key drivers that went up in 2025

Carrier base rates and fuel: UPS/FedEx/USPS rate adjustments plus volatile fuel indices; ocean bunker surcharges and emergency GRIs/PSS³.
DIM billing: lower DIM divisors and stricter enforcement make volume, not weight, the primary cost driver for many SKUs.
Peak season surcharges: holiday and capacity surcharges extend longer windows, not just Q4.
Labor and last‑mile: wage inflation and remote area fees raise the final leg cost.
Compliance/regulatory: more customs exams, EPR in EU markets, and security fees on air cargo.

Macro forces: why your quote went up even if you didn’t change anything

Ocean volatility: route diversions, port congestion, and seasonal space pushes carriers to add GRIs and PSS. The result is higher per‑CBM for LCL and higher all‑in for FCL during peak weeks.
Air cargo cost structure: jet fuel indices, security screening fees, and demand swings (electronics, fast‑fashion cycles) lift rates and push dimensional charging.
Parcel/last‑mile economics: carriers recover costs via additional handling, large package fees, and residential surcharges. Amazon’s own network balances capacity via fees linked to size/weight tiers.
Inventory economics: storage and aged inventory surcharges in FBA compress tolerance for slow movers, effectively making “shipping + storage” a single cost line you must manage together.
Currency: quotes in USD vs CNY/EUR can move materially month to month; unhedged FX changes can erase margin.

DIM pricing: where packaging beats shipping speed

Dimensional weight (DIM) means you pay for space, not just mass. Carriers calculate DIM as length × width × height divided by a divisor, then bill the higher of actual weight or DIM.

Practical formula: DIM weight (lb) = (L × W × H in inches) / divisor
The divisor is carrier‑specific and may differ by service; if your carton is big and light, expect DIM to dominate.

Example impact of packaging changes:

Carton Option	Dimensions (in)	Volume (in³)	DIM Divisor	DIM Weight (lb)	Actual Weight (lb)	Billed Weight (lb)	Comment
Current	20 × 16 × 12	3,840	139	27.6	18	27.6	Paying for air in the box
Optimized inserts	18 × 14 × 12	3,024	139	21.8	18	21.8	~21% drop in billed weight
SIOC redesign⁴	17 × 13 × 11	2,431	139	17.5	18	18.0	DIM no longer dominates

Action: invest in carton right‑sizing, SIOC packaging, and bundle redesign. The payback is fast because DIM affects both air and ground parcel legs.

FBA vs FBM: cost and control trade‑offs

Fulfilled by Amazon (FBA) shifts last‑mile and customer service to Amazon but adds inbound and storage complexity. Fulfilled by Merchant (FBM) keeps your control but requires your own last‑mile contracts and SLAs.

Cost Category	FBA (Pros/Cons)	FBM (Pros/Cons)
Inbound to FC	Efficient if palletized/labelled; subject to appointments and placement fees	Flexible inbound to your 3PL; schedule control
Storage	Networked, fast‑moving wins; aged inventory surcharges apply	You set storage strategy; can be cheaper off‑peak
Outbound to customer	Amazon’s rates and speed; dense network	Your contracts and service levels; can tailor methods
Returns handling	Standardized processing fees; disposal/removal options	Custom reverse logistics; refurbishment flexibility
Buy Box / Prime	Stronger Prime conversion; low inventory penalties matter	Seller‑fulfilled Prime requires strict metrics
Cost transparency	Multiple fee types; easy to miss “small” surcharges	Clear P&L at your 3PL; negotiate directly

When FBA wins: fast movers, compact packaging, consistent weekly replenishment, strong Prime conversion.
When FBM wins: bulky or heavy items (DIM‑sensitive), custom bundles, seasonal spikes, or when you can beat Amazon’s outbound with your 3PL.

DDP vs DDU (DAP): which Incoterm keeps you out of trouble

For inbound FBA, Delivered Duty Paid (DDP) means you prepay duties, taxes, and customs brokerage so the shipment arrives complaint‑free. Delivered At Place (DDU/DAP) pushes those costs to the consignee—dangerous when the consignee is an Amazon FC that cannot act as importer.

Factor	DDP	DDU/DAP
Duties & taxes	Included in your quote; predictable	Pay on arrival; can delay handover
Brokerage	Included; one party accountable	Buyer pays; risk of unexpected fees
FBA inbound	Preferred (Amazon isn’t importer)	Often rejected or delayed
Cash flow	Higher upfront cost	Lower upfront; higher risk
Delivery speed	Faster customs clearance	Potential holds and returns

Tip: specify DDP with named service levels (door‑to‑door), and ensure your broker handles ISF/AMS filing⁵, bond, and exam coordination. The reduction in exception risk often outweighs the slightly higher headline rate.

Ocean vs air: consolidation levers that move the needle

For international replenishment, mode selection sets your unit economics.

Mode	Speed	Cost per kg/CBM	Best for	Notes
LCL (ocean)	Slow	Moderate per CBM	Sub‑FCL volumes, frequent restocks	Pay per CBM; more handling; exam exposure
FCL 20’/40’ (ocean)	Slow	Lowest per CBM	10–28+ CBM loads, planned cycles	Break‑even often ~10–12 CBM+ vs LCL
Air cargo	Fast	High; DIM‑sensitive	Launches, urgent replenishments	Airport to airport; add terminal/line‑haul
Air express	Fastest	Highest	Samples, high‑margin SKUs	Simplest door‑to‑door; steep DIM billing

Rules of thumb:

Move to FCL when your rolling 4‑week forecast exceeds ~10–12 CBM; FCL reduces touchpoints and exam risk.
For air, optimize packaging first; every inch pays twice—airport fees and last‑mile parcel DIM.

Brokerage, duties, and compliance: the silent cost line

These fees rarely appear in marketing, but they hit margins:

Customs entry and clearance
ISF/AMS filings and bonds (US)
Terminal handling charges, port security fees
Exams: VACIS/X‑ray, CET, intensive—time plus cost
Duty rates by HS code, MFN, Section tariffs where applicable
EU VAT considerations, IOSS for B2C, EPR packaging compliance

Actions:

Classify HS codes accurately; small duty changes beat rate negotiations.
Prepare complete documents (invoice, packing list, COO, product compliance docs).
Pre‑clear when possible and use DDP to avoid consignee exceptions.

The last mile and network fees: where speed meets surcharge

Outbound costs rise with:

Residential delivery and remote area fees
Additional handling for oversize or non‑conveyable packages
Peak season capacity surcharges
Returns processing and unsellable dispositions

Operational levers:

Align carton to conveyor limits; avoid non‑conveyables.
Use address validation to reduce delivery failures.
Reduce returns at source (QA, clearer listings); each return triggers processing fees and potential disposal.

Build a 2025 landed cost model you can use

Use a simple stack that you can audit monthly:

Ex‑factory product cost
Origin handling and export docs
Main transit (ocean/air) + fuel/surcharges
Destination fees + customs brokerage + duties/taxes
Amazon inbound (labels, drayage/line‑haul, placement)
Storage (monthly, aged inventory)
Outbound (pick/pack, weight/DIM tiers, last‑mile)
Returns and removal/disposal
FX impact (if buying in CNY, selling in USD/EUR)

Illustrative example (per unit):

SKU: 1.2 kg actual weight, current carton 18 × 14 × 12 in
Air cargo DIM billed weight ≈ 21.8 lb before optimization
After packaging change to 17 × 13 × 11 in, billed ≈ 18 lb
If your air rate is charged per billed kg/lb, this single change can cut main transit by ~17% and reduce last‑mile parcel charges similarly.

A simplified unit P&L table:

Cost Layer	Before (USD/unit)	After (USD/unit)	Lever
Main transit (air)	3.90	3.25	DIM reduction
Destination/clearance	0.65	0.60	DDP with bundled brokerage
Inbound to FC	0.45	0.40	Better palletization & appointment
Storage (60 days)	0.50	0.42	Faster turns; weekly replenishment
Outbound (FBA fee portion)	4.20	3.90	Size tier change via packaging
Returns & disposal	0.30	0.25	QA and listing clarity
Total shipping‑related	10.00	8.82	11.8% reduction

Your exact numbers will vary; the point is the structure—attack DIM, consolidation, and exception costs first.

12 cost‑reduction plays for 2025

Right‑size packaging to drop a size tier and reduce DIM billed weight.
Consolidate weekly into LCL/FCL cut‑offs; target the FCL break‑even as early as 10–12 CBM.
Use DDP to eliminate consignee exceptions and unpredictable brokerage add‑ons.
Pre‑label and palletize to Amazon spec to avoid inbound rework and appointment delays.
Balance inventory to avoid aged inventory surcharges; forecast weekly replenishments.
Choose slower service levels for non‑urgent SKUs; air cargo instead of air express, ocean instead of air where feasible.
Deploy transloading at destination to move from ocean container to parcel faster, cutting storage overlap.
Use merge‑in‑transit to combine multi‑supplier shipments into one delivery, reducing last‑mile touches.
Hedge FX exposure for recurring lanes to protect per‑unit margins.
Validate addresses and reduce returns through better product content and QA.
Negotiate program rates with carriers/forwarders on a rolling forecast rather than spot buys.
Audit HS codes annually; reclassifications and preference programs can lower duty rates.

Summary: why cost is up—and how to get it down

Costs climbed in 2025 because carriers and networks priced capacity more tightly, DIM and peak surcharges expanded, and compliance took a larger slice. For global Amazon sellers, the winning playbook is straightforward: engineer packaging to beat DIM, choose the right mode and consolidation level (move to FCL when you can), use DDP to control brokerage and clearance, and decide FBA vs FBM by SKU profile rather than habit. Build a landed cost model, audit each layer quarterly, and attack the highest‑impact levers first.

About Author

Marson Chan

Expert of international shipment and supply chain management