Observed Signal · May 13, 2026 · Policy Update · Source: Adweek · Impact: 4/5 · Sentiment: Positive
Amazon Drops Planned SP-API Fees After Industry Backlash
Amazon has reversed plans to charge third-party vendors usage and annual fees for its Selling Partner API (SP-API) after pushback from developers, adtech firms and agencies. The company told SP-API users this week it will not move forward with the proposed SP-API usage and annual fees “at this time,” saying support for partners’ ability to innovate is a priority. The fees were first announced in November 2025 and had prompted concern that they could strain relationships between Amazon and the technology vendors that build tools for advertisers.
A policy reversal from a major retail/platform provider affects the economics and integration strategy for third-party adtech vendors and agencies; it preserves access paths and cost assumptions for tools that support Amazon’s retail and advertising ecosystem.
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Key Takeaways & Evidence Grounding
- Amazon announced it will not proceed with planned usage and annual fees for the Selling Partner API (SP-API) "at this time."
- The SP-API fees were originally announced in November 2025.
- Amazon communicated the reversal in a message to SP-API users and framed the decision as supporting partners' ability to innovate, build and grow.
- Developers, adtech firms and agencies reacted positively to Amazon’s reversal, expressing relief on social channels.
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Related Market Signals & Shifts
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Amazon Tightens Margins and Liquidity for Sellers
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Amazon Sellers Boycott Ads Over New Payment Policies
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Amazon Ads Boycott Raises Existential Question for Sellers
A coalition of large Amazon sellers organized by Million Dollar Sellers paused Amazon Ads spend for 24 hours in mid-April 2026 to protest recent policy and fee changes that are squeezing seller margins. Complaints center on a 3.5% fuel surcharge, longer payment timing (Amazon waits seven days after delivery confirmation to pay sellers), and a proposed ban on credit-card payments for Amazon media and data — a change Amazon has delayed until August after pushback. Sellers argue credit-card perks and cashback materially offset thin margins. Marketplace Pulse data cited in the piece shows active seller counts falling (584,000 to 500,000) and increasing concentration of third-party GMV among fewer sellers. The author frames the boycott as a limited lever sellers can use while questioning whether it remains viable to build and scale brands primarily on Amazon amid rising costs and regulatory pressures.
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