Just received an email last week from Amazon Shipping (AMZ's point to point parcel service). Amazon shipping has been very competitive with our Fedex rates. For items unsuitable to FBA, we use Amazon shipping to move merchant fulfilled orders to Amazon orders, and non-amazon marketplaces.
Our monthly spend (post discount) is approximately $40,000 for Amazon shipping, soon to be zero'd out. Due to, them completely and utterly killing off the competitiveness.
Original Negotiated rate with Amazon is pretty good compared to our Fedex rates (I get 70% ground discount, 50-75% delivery area surcharge, 75% discount on residential).
This new rate... seems to be a standardized "take-it-or-leave-it price chart with an effective date of 7/26/2026.
Based on my current vs new rate:
Packages under 15 lbs: 43% increase
Packages 15-30 lbs: 78% increase
Packages 30-45 lbs: 88% increase
DIM divisor cut from 194 to 166.
Since my system performs live rate shopping between carriers, I am forecasting a drop of more than 90% in parcel volume, looks like volume will shift over to Fedex, USPS and other regional carriers.
Amazon shipping already heavily cherry picks packages (mostly large metropolitan areas) so their overhead is inherently much cheaper than legacy carriers, but this seems like another case of internal analysts being disconnected with reality. so we'll see how this plays out.
Original Email:
Dear Amazon Shipping Customer,
We are reaching out regarding two important updates to your Amazon Shipping account.
Pricing Adjustment
As part of our ongoing commitment to maintaining high service standards, we regularly review our operations to ensure we continue to deliver reliable and efficient shipping solutions for your business. Following this review, we would like to inform you of an upcoming adjustment to your Amazon Shipping rates, effective July 26, 2026.
These adjustments support our continued investment in service quality, technology, and operational capabilities, helping us consistently meet the evolving demands of the shipping industry.
Your new rates will be available on the Shipping Rates page in Shipper Central on July 26, 2026, or you can preview them now by clicking on the button below.
Preview rates
Earned Discount Updates
Along with this rate structure change, your Earned Discount table will also be updated with improved tracking features. The discount adjusts based on how much you ship - the more you ship, the more you can save.
Earned Discount rewards consistent shipping activity with Amazon Shipping, calculated weekly based on your trailing 52-week annual gross shipping spend and automatically applied to your base rates at label purchase.
What’s new?
You will now have enhanced visibility into your discount directly from your account. You can track:
Current Earned Discount percentage tier
Progress towards the next percentage tier
Weekly Earned Discount history
What does this mean for you?
Starting July 26, 2026, your rate structure and Earned Discount terms will be updated. When these rates go live, you will be able to download your updated rate card and track your Earned Discount tier by logging into Shipper Central and navigating to the Shipping rates page.
With this update, we are giving you a new 2-week ramp period to reach the revised committed spend before your next Earned Discount tier calculation. Your next discount tier calculation will occur on August 23, 2026*.
*The Earned Discount tier applied to the shipping rates tab of the attached file is reflective of your current ADV. Your next tier calculation will occur on August 23, 2026 based on actual shipments between August 9, 2026 and August 22, 2026.
Thank you for shipping with us. If you have any questions, please don’t hesitate to reach out to us via “Contact Us" in Shipper Central. Our team is available to help if you need assistance.