Amazon

AI Refund Fraud Adds Risk to FBA Fee Calculations

By JiuFang Logistics
July 20, 2026

Returns Already Carry High Costs

U.S. retailers processed approximately $849.9 billion in merchandise returns in 2025, and about 9% were fraudulent, Practical Ecommerce reported July 16, citing the National Retail Federation and Happy Returns.

E-commerce recorded a 19.3% overall return rate, substantially higher than physical retail.

AI Expands Synthetic Evidence

Generative AI can create convincing photographs of cracked, stained or incomplete products. It can also fabricate damaged packaging, customer-service messages, carrier records and delivery screenshots used to support false refund claims.

The risk is higher when merchants approve low-value refunds remotely because return shipping and inspection would cost more than the product.

AI-Specific Losses Remain Unclear

The 9% fraud figure covers return fraud overall. Practical Ecommerce said there is no credible U.S. estimate for the share specifically assisted by AI, so sellers should not treat all fraudulent returns as AI-generated.

Manual review, extra photo angles and mandatory returns can reduce risk, but each control also adds support, shipping and inspection expense.

Add Expected Return Loss

FBA profitability models should include expected return cost per sale: return probability multiplied by the average net loss per return. The net loss can include non-resellable inventory, applicable Amazon return charges, removal or disposal costs and unrecovered shipping.

China-based sellers should calculate this by SKU and category. A low-margin product with a high return rate can become unprofitable even when its standard FBA fulfillment fee remains unchanged.

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Air Cargo Rate Forecast Rises 5%-15% for FBA Sellers

By JiuFang Logistics
July 20, 2026

Xeneta Reverses Its Rate Forecast

Xeneta now expects long-term air freight contract rates to increase 5%-15% in 2026, FreightWaves reported July 17. The analytics firm had previously forecast a 5%-10% decline.

Combined spot and contract rates rose 17% year over year in the first half. Spot rates increased 22%, long-term rates rose 11%, and airline spot prices jumped 40% from May through June.

Capacity and Fuel Raise Costs

Middle East airspace and airport disruption initially removed more than 12% of global air cargo capacity, while higher jet fuel prices added further pressure. Xeneta expects full-year supply to grow about 2%, below demand growth.

June air cargo demand increased 7% year over year, supported by semiconductor and AI hardware shipments. AI-related products now represent about 10% of total air cargo volume.

China E-Commerce Air Demand Slows

China’s low-value e-commerce exports fell 7% year over year in May, the sixth consecutive monthly decline, according to Xeneta. New low-value import rules in the United States and European Union have weakened a major source of air cargo growth.

Update the FBA Fee Calculation

China-based FBA sellers should model the air freight portion of landed cost at three levels: current quote multiplied by 1.05, 1.10 and 1.15. Fuel, security and war-risk surcharges should remain separate where the forwarder does not include them in the base rate.

Total FBA cost per unit should include international freight, customs duty and tax, destination handling, Amazon inbound charges, storage and fulfillment fees. Air freight should be reserved for inventory where the avoided stockout cost exceeds the rate premium.

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EU €3 Parcel Duty Changes FBA Fee Calculations for China Sellers

By JiuFang Logistics
July 17, 2026

€3 Duty Starts on Low-Value Parcels

The European Union began charging a €3 customs duty on July 1 for direct-import parcels valued below €150, The Register reported July 6. The measure ends the previous duty-free treatment for these low-value shipments.

EU data shows that 4.6 billion e-commerce parcels worth less than €150 entered the bloc in 2024, with 91% arriving from China.

The Charge Applies Per Tariff Line

The duty is assessed per product category in the customs declaration, not simply per parcel. A parcel containing several units under one tariff line incurs €3, while a parcel containing three different tariff lines incurs €9.

Product classification therefore directly affects the landed cost of mixed-item orders.

FBA and FBM Orders Are Covered

Amazon told sellers that the duty applies to FBA and FBM customer shipments sent directly from outside the EU to EU consumers. Amazon also said the charge does not apply when products are fulfilled from inventory already located inside the EU.

How to Calculate the New Cost

The €3 charge is a customs cost, not an Amazon FBA fee. For direct shipments, sellers should multiply €3 by the number of tariff lines and add VAT, transport, marketplace fees and any customs-processing costs.

For EU-based FBA inventory, the comparison should include bulk-import duty and VAT, international freight, Amazon inbound charges, storage and fulfillment fees. Consolidating inventory into an EU warehouse can avoid the new charge on each customer shipment, but it introduces inventory and storage risk.

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Amazon Shipping Discounts Reshape FBA Fee Calculations

By JiuFang Logistics
July 17, 2026

Amazon Targets Parcel Volume

Amazon Shipping is offering U.S. parcel rates that match or undercut FedEx and UPS as it seeks more business customers, Supply Chain Dive reported July 9. Logistics platform Loop said eligible residential shipments saved clients as much as $6 per package.

For one large retailer, Amazon Shipping covered more than 90% of distribution and reduced annual parcel spending by over 33% compared with FedEx, according to Loop.

Fewer Delivery Surcharges

Amazon said its service has no residential surcharge or weekend delivery fee. Pricing experts also cited surcharge waivers and lower fuel surcharges as reasons quoted costs can be simpler than traditional carrier contracts.

The reported savings are customer-specific, not a universal rate reduction. Package weight, destination, volume commitment and existing carrier discounts still determine the final cost.

Service Limits Still Matter

Amazon Shipping currently provides two-to-five-day ground delivery in the contiguous United States. It does not offer the same range of overnight and specialized services as FedEx or UPS, making it most relevant to high-volume retailers shipping lightweight parcels.

How to Update the Fee Calculation

Amazon Shipping is not an FBA fulfillment fee. China-based sellers should use its parcel quote as an FBM benchmark when deciding whether to send inventory into FBA.

The FBA calculation should include international inbound freight, customs costs, Amazon inbound placement charges, storage and fulfillment fees. The FBM comparison should include pick-and-pack labor, the Amazon Shipping label, packaging, returns and any uncovered destinations. Sellers should compare total cost per delivered order rather than a single headline rate.

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Asia Air Cargo Tightens as AI Shipments Compete With E-Commerce

By JiuFang Logistics
July 16, 2026

Two Cargo Segments Compete

AI-related data center equipment is competing with e-commerce shipments for limited freighter space on routes from Asia, the Journal of Commerce reported July 15. Air cargo tonnage from Taiwan to Europe increased 20% over the previous three weeks, driven mainly by computer equipment linked to AI demand.

Carriers Add Asian Capacity

Freighter capacity from Vietnam increased 30% from January through June, according to air freight consultancy Aevean. Capacity from Thailand rose 12%, while Taiwan recorded a 7% increase over the same period.

The additions have not removed the broader constraint because e-commerce and data center cargo require the same type of air capacity.

Rates Remain Elevated

Strong demand and limited space are keeping Asian air freight rates elevated. Time-sensitive e-commerce shipments must compete not only with other consumer goods but also with high-value technology cargo that can support premium transport costs.

Amazon FBA Planning

China-based Amazon FBA sellers using air freight for urgent replenishment should reserve space before inventory is ready and compare direct and regional gateway options. The figures cited cover Vietnam, Thailand and Taiwan, but the competition for Asian freighter capacity can also affect sellers routing cargo through regional hubs.

Air shipments should be reserved for inventory where the avoided stockout cost justifies the higher freight rate. Less urgent replenishment can move by ocean or rail where the destination permits.

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Amazon and Chinese E-Commerce Lift UK Warehouse Demand

By JiuFang Logistics
July 16, 2026

UK Warehouse Demand Returns

UK industrial net absorption reached nearly 6 million square feet in the second quarter of 2026, its strongest result in more than three years, according to CoStar data released July 16. Twelve-month net absorption also returned to positive territory after reaching a 23 million-square-foot low in 2024.

Amazon Adds Major Capacity

Amazon took an estimated 6 million square feet of UK warehouse space over the past 18 months. That total includes a 2 million-square-foot facility at Segro Park Northampton, which opened in June, while a 900,000-square-foot site at Symmetry Park Kettering is scheduled to open this autumn.

Chinese E-Commerce Expands

Chinese occupiers had leased or placed under offer more than 2 million square feet by mid-2026, putting the segment on course for another record year. CoStar said Chinese e-commerce platforms are increasing domestic inventory and logistics space to support faster UK delivery.

Impact on Amazon FBA Sellers

For China-based Amazon FBA sellers, additional UK fulfillment capacity can support deeper local inventory, but it also signals stronger competition for well-located warehouse and delivery resources. Inventory plans should account for international transit, customs clearance, domestic storage and Amazon receiving time.

The expansion favors earlier replenishment decisions for products that depend on consistent UK delivery speed.

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Amazon Expands Customs-Friendly China Warehouse Network for FBA Sellers

By JiuFang Logistics
July 15, 2026

Warehouses Near Chinese Ports

Amazon is building warehouses near major Chinese ports to attract exporters seeking more compliant access to the U.S. market, Nikkei Asia reported on July 15. The strategy comes as imported goods face closer scrutiny.

Shanghai Follows Shenzhen

A new facility near Shanghai port follows Amazon’s existing Shenzhen center, and another location is planned, according to Nikkei Asia. The network gives China-based sellers more options for staging U.S.-bound inventory before international shipment.

Focus on U.S. Customs Compliance

Port-adjacent storage can support cargo consolidation and earlier document checks, but it does not remove customs obligations. Sellers remain responsible for accurate product classification, declared value, origin information and required import documentation.

Impact on Amazon FBA Sellers

For Amazon FBA sellers, a broader China warehouse network can simplify bulk inventory planning and replenishment. Shipping schedules must still include export clearance, ocean or air transit, U.S. import clearance, inland delivery and Amazon receiving time.

The expansion signals that customs compliance is becoming a larger part of Amazon’s logistics offer to Chinese exporters.

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Transpacific Rates Surge as Early Peak Raises Amazon FBA Shipping Costs

By JiuFang Logistics
July 15, 2026

Asia-U.S. Rate Increases

Transpacific spot rates rose sharply in early July as shippers accelerated cargo movements, Supply Chain Dive reported on July 7. Freightos data placed the Asia-to-U.S. West Coast rate at $6,200 per forty-foot equivalent unit as of July 4, up 120% since mid-May.

The Asia-to-U.S. East Coast rate reached $8,000 per FEU, an 85% increase over six weeks.

Frontloading Creates an Early Peak

Shippers pulled orders forward ahead of July bunker surcharges, manufacturer price increases and an approaching U.S. tariff deadline. Freightos said the rush created an earlier-than-normal peak season and could also produce an earlier slowdown later in July.

Carriers Add Capacity

Offered capacity from Asia to the U.S. West Coast reached a record level, according to Xeneta. MSC reinstated its Pearl service, while Yang Ming and ONE deployed extra loaders to handle frontloaded cargo. Additional capacity improved availability but had not reversed the upward rate trend.

Impact on Amazon FBA Sellers

China-based Amazon FBA sellers shipping by ocean face higher costs during a critical holiday inventory window. Sellers should compare West Coast and East Coast landed costs, reserve space before factory completion and allow time for customs clearance, inland delivery and FBA receiving.

The data also shows that waiting for the traditional late-summer peak may not reduce risk when tariff deadlines and frontloading shift demand earlier.

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Amazon to Open Shanghai Hub for U.S.-Bound FBA Inventory

By JiuFang Logistics
July 14, 2026

New Shanghai Distribution Center

Amazon plans to open a Global Warehousing and Distribution center in Shanghai on July 16, 2026. The facility will allow sellers to store U.S.-bound inventory in bulk in China, according to Amazon and Supply Chain Dive.

The Shanghai location joins Amazon’s existing distribution center in Shenzhen.

Role in Amazon FBA Inventory Planning

The new center gives China-based sellers another location for staging export inventory before it enters Amazon’s U.S. fulfillment network. Bulk storage can separate long-term stock from inventory already assigned to an Amazon FBA fulfillment center.

Impact on China-to-USA Shipping

A China-based storage option may help sellers consolidate cargo and plan replenishment in larger batches. International transit, export and import clearance, and Amazon receiving time still need to be included in the final FBA delivery schedule.

Peak-Season Timing

The opening comes as Amazon advises sellers to place holiday inventory in its network by October. Sellers using the Shanghai center should work backward from the required U.S. check-in date when booking ocean or air freight from China.

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Amazon FBA 2026 Holiday Fees: China Sellers Told to Ship Early

By JiuFang Logistics
July 14, 2026

Amazon FBA Holiday Fees

Amazon will apply higher holiday fulfillment fees from October 15, 2026, through January 14, 2027, Supply Chain Dive reported on July 13. The increase covers Fulfillment by Amazon, Remote Fulfillment with FBA, Multi-Channel Fulfillment and Buy with Prime.

The Amazon FBA increase will average $0.32 per unit, matching the previous peak season. Amazon’s existing 3.5% fuel and logistics surcharge will apply on top of the holiday fee.

October Inventory Target

Amazon advised sellers to place inventory in its network by October to maintain Prime delivery speeds for Black Friday and Cyber Monday. The exact deadline depends on whether inventory is entering Amazon Warehousing and Distribution or an FBA fulfillment center.

Amazon also warned that sellers may receive lower capacity limits in November and December as fulfillment centers prioritize customer orders.

Impact on China Sellers

China-based Amazon FBA sellers must account for production, export customs, international transit, import clearance and FBA receiving time before the October target. Late cargo may face both higher fulfillment costs and limited inbound capacity during the holiday rush.

Shipping plans should be based on the inventory check-in date, not only the vessel or flight departure date from China.

New Shanghai Distribution Center

Amazon also announced a Global Warehousing and Distribution center in Shanghai for bulk storage of U.S.-bound seller inventory. The facility is scheduled to open July 16 and joins Amazon’s existing Shenzhen distribution center.

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