2026-06-11 · 9 min read
Amazon Inbound Defect Fees 2026: What They Are and How to Avoid Them
Amazon now charges $0.32 to $5.72 per unit for shipments that arrive with problems. Here is how the inbound defect program works and how to stay compliant.
Amazon's inbound defect fee program launched in 2025 and changed significantly in 2026. Previously, shipments that arrived with prep or labeling problems were rejected or held. Now, Amazon assesses fees per defective unit, accepts the inventory, and deducts the fees from your account. For sellers with prep inconsistencies, these fees have become a significant unexpected cost.
What counts as an inbound defect
Amazon defines six defect categories for inbound shipments:
Unexpected items: products that arrive at a fulfillment center that were not on the shipment manifest. This happens when inventory gets cross-contaminated across shipments. Fee: $0.32 per unexpected unit.
Missing barcode: the FNSKU label is missing or unreadable. Fee: $0.16 per unit with a missing or unscannable barcode.
Prep issue: the item required prep (poly-bagging, bubble wrapping, etc.) but arrived without it. Fee: $0.32 per unit.
Damaged: the item arrives in condition that makes it unsellable. Fee: $2.45 to $5.72 per unit depending on damage severity.
Over-boxing: the item is over-packaged in a way that requires Amazon to remove and repack. Fee: $0.55 per unit.
Label issue: the FNSKU label is applied in the wrong location or is partially obscured. Fee: $0.16 per unit.
Why fees jumped in 2026
Before the prep service shutdown in January 2026, sellers who sent items without proper prep paid Amazon to fix it. The fee was $0.55 to $1.55 per unit. Now that Amazon no longer offers prep services, the inbound defect program is the enforcement mechanism. Units that arrive with prep problems are processed and the defect fee is charged, but Amazon will not fix the prep.
This means defective units may reach customers in non-compliant packaging. Amazon tracks this in the Inbound Problem Report and uses it to calculate your shipment defect rate, which affects your future inbound shipment permissions.
How to review your inbound defect charges
In Seller Central, go to Inventory > FBA Inventory > Shipments, then select a specific shipment and click on the Inbound Performance Report. This shows every defect flagged for that shipment, the fee charged, and the specific ASIN affected.
You can also access aggregate defect data under Reports > Fulfillment > Inbound Performance Report. Download the report and filter by defect type and date range to understand your defect patterns across multiple shipments.
Disputing incorrect defect fees
Amazon does make mistakes. A common error: a unit is flagged as "missing barcode" when the barcode was properly applied but faced inward during scanning. To dispute, file a case in Seller Support > FBA Issue > Inbound Shipment. Include photos from your prep process showing compliant labeling, and reference the shipment ID and the specific ASIN. Include the date of the defect charge from the inbound performance report.
Amazon reviews disputes within 7 to 14 business days. Keep photos from every shipment prep session for at least 90 days for this reason.
Preventing inbound defect fees
Implement a prep checklist for every shipment. For each ASIN, document: required prep type (bubble wrap, poly-bag, etc.), label placement location, box orientation for fragile items. Review this checklist with whoever handles prep before each shipment.
Run a pre-shipment audit. Before sealing boxes and applying shipping labels, check 5% to 10% of units for barcode scannability (a phone barcode scanner app works), correct prep application, and that no unexpected units have been mixed into the shipment.
Use a 3PL experienced with Amazon requirements. Third-party logistics providers that specialize in Amazon prep have systems that catch defects before shipment. Ask potential 3PLs for their defect rate per shipment before selecting one.