Amazon’s New Coupon Fee Structure: What It Means for Handmade Sellers

Are your coupons helping you win sales or bleed profits?

Let’s discuss the not so fun fine print of selling on Amazon—the kind that shows up in your payout report and makes you go: Wait, what did I just pay for?!

If you use Amazon coupons as part of your pricing and promotions strategy, there's a big change coming down the pipeline. One that could seriously shift your profitability—especially if your product pricing dances on either side of that magic $24 mark.

Let you Biz Bestie break it down....

Here’s What’s Changing

Current Coupon Fees (until June 1, 2025):

• $0.60 per redemption (charged every time a shopper uses your coupon)

  
  

New Coupon Fees (starting June 2, 2025):

• $5 flat fee per coupon (charged once, when you create the coupon)

• Plus 2.5% of total sales on redeemed coupons

  
  

That's a big shift from flat-rate to percentage-based. And percentage-based fees? Those hit different—especially if you sell high-ticket items.

Let’s Do the Math. Ugh.

Here are two real-world examples to see the impact in action. Buckle up because my math usually doesn't math, so I had my team check it. :)

Example 1: A $20 Product with a $5 Coupon

Before June 1:

• $0.60 per redemption

• Sell 1,000 units = $600 in fees

After June 2:

• $5 flat fee + 2.5% of $20,000 (your sales)

• $5 + $500 = $505 in fees

👉 Result: Slight savings. But now you have to cough up the $5 upfront, even if the coupon flops. No pressure, right?

Example 2: A $100 Product with a $20 Coupon

Before June 1:

• $0.60 per redemption

• Sell 1,000 units = $600 in fees

After June 2:

• $5 flat fee + 2.5% of $100,000 = $2,505 in fees

👉 Result: Ouch. That’s a +$1,905 increase in coupon fees. If your margins are already tight, this is a red flag waving very aggressively.

So What Does This Mean for Handmade + Product-Based Sellers?

If your products are priced under $24, you might be okay. The percentage fee (2.5%) actually works out to less than the flat $0.60 per redemption in many cases.

But if you sell premium, high-end, or luxury items—like artisan perfumes, bundled gift boxes, or skincare kits—the new model can seriously eat into your profits.

Margins matter. Please, I preach this every day: know your numbers. They don't lie. Even a 2.5% swing could push a product from profitable to break-even—or worse, a loss.

How to Stay Ahead of the Coupon Curve

This isn’t the end of coupons—but it is the beginning of more strategic couponing.

Here’s what to do now:

1. Recalculate your margins. Run your numbers with the new fee structure and see where things land. Factor in product cost, Amazon fees, fulfillment, and now—coupon fees.

2. Stop “set it and forget it” couponing. If you’ve been running evergreen coupons, it’s time to reevaluate. Only promote when it truly moves the needle—like launches, holidays, or peak sales periods.

3. A/B test discount types. Percentage-off vs. dollar-off. Bundle vs. single. You might find that adding a free gift or sample (that costs you less than 2.5%) delivers a bigger perceived value.

4. Track coupon-driven conversions. Are your coupons actually converting browsers into buyers—or are they just cutting into your bottom line? Look at your Amazon stats or integrate with third-party tools to monitor ROI.

5. Consider using coupons off-Amazon.If your goal is discovery or new customer acquisition, sometimes it’s better to drive traffic to your own site where you control the terms (and the margins).

Handmade Doesn’t Mean Hidden

Amazon sellers in the handmade space already walk a tricky line—between staying visible and staying profitable. This fee change makes it more important than ever to play smart.

If you’re not already using a pricing calculator, this is your cue. Set one up that includes Amazon’s referral fee, fulfillment fees, and now, updated coupon costs. (Trust me—future you will thank you.)

Let’s Crowdsource Some Genius

I’d love to hear: Do you use coupons on Amazon? Will this change how you run promos? Drop a comment below or tag me in your stories @bizbestieco—let’s make this a conversation, not a solo stress session.

Takeaway: Coupons can still be powerful, but only if they make financial sense. Run the math, test what works, and be ready to pivot your strategy as Amazon keeps evolving.