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You are a senior Amazon channel economics analyst. You've helped brands
respond to Amazon fee changes quickly and correctly — modeling the
true impact before deciding whether to absorb it, raise prices, or
reduce costs elsewhere. You know that sellers who react slowly to fee
changes silently erode margin for months before noticing.

I'm going to provide my SKU data and the new fee structure. For each
SKU, calculate the before/after impact and flag which require action.

STEP 1: CALCULATE CURRENT CM PER SKU
Current CM$ per unit = sell price − COGS − current fees (fulfillment
+ referral + storage + any other fees provided)
Current CM% = CM$ ÷ sell price × 100

STEP 2: CALCULATE NEW CM AFTER FEE CHANGE
Apply the new fee amounts I provide to each applicable SKU.
New CM$ per unit = sell price − COGS − new fees
New CM% = new CM$ ÷ sell price × 100

STEP 3: CALCULATE IMPACT
For each SKU:
- Fee delta per unit = new fees − current fees (positive = fees
  increased, negative = fees decreased)
- CM delta per unit = new CM$ − current CM$
- CM% delta = new CM% − current CM%
- Annual dollar impact = CM delta per unit × monthly units × 12

STEP 4: FLAG STATUS
Classify each SKU:
- ABSORB: New CM% is still above target margin — no action needed
- PRICE ADJUSTMENT NEEDED: New CM% falls below target — calculate
  required price increase to restore target margin
- REVIEW REQUIRED: New CM% drops below 10% — product viability
  at risk, requires strategic review
- IMPROVED: Fee went down — flag the gain

For SKUs flagged PRICE ADJUSTMENT NEEDED, calculate:
Required new sell price = (COGS + new fees) ÷ (1 − target CM%)
Required price increase = new sell price − current sell price
Required price increase %

Output format:

FEE CHANGE IMPACT ANALYSIS
Fee change effective date: [as provided]
Total SKUs analyzed: X
Total annual impact: $X (positive = cost increase, negative = savings)

SKU IMPACT TABLE
| SKU | Current CM% | New CM% | Fee Delta/Unit | Annual Impact |
Status |

PRICE ADJUSTMENT REQUIRED
For each flagged SKU:
| SKU | Current Price | Required Price | Increase $ | Increase % |

SUMMARY
- SKUs needing price increase: X
- SKUs can absorb: X
- SKUs under review: X
- Net annual impact to catalog if no action taken: $X
- Net annual impact after recommended price adjustments: $X

BEFORE YOU EXECUTE:

1. If any required input is missing, unclear, or looks malformed,
   stop and ask me a specific clarifying question before proceeding.
   Do not guess or fill in plausible values.

2. If I haven't provided a target CM%, ask before classifying SKUs.
   The status flags are meaningless without a margin benchmark.

3. If the fee change applies only to certain size tiers or product
   types, apply it selectively — do not apply a fulfillment fee
   change to SKUs that fall outside the affected size tier.

4. If you are less than 95% confident you understand what I'm asking
   for, ask me to clarify before executing the task.

5. Verify every arithmetic calculation by working it twice. Do not
   round intermediate calculations; round final figures to two decimal
   places.

6. After completing the analysis, flag any SKU where you had to make
   an assumption about which fee tier applies under a "Caveats"
   section.

=====

PASTE YOUR SKU AND FEE DATA BELOW. Include for each SKU: SKU name,
sell price, COGS, current FBA fulfillment fee, referral fee %,
monthly storage fee, monthly sales volume, and current CM% if known.
Then specify the fee change: which fee is changing, the old amount,
and the new amount (by size tier if applicable). Also provide your
target CM%.

[YOUR DATA HERE]
What you'd paste after the divider
Target CM%: 25%

Fee change: FBA fulfillment fee increase effective February 5, 2026
Size tier affected: Small standard (up to 16 oz)

Old fee: $3.06 per unit
New fee: $3.31 per unit
Change: +$0.25 per unit

SKU: CANDLE-SM
Sell price: $18.99
COGS: $4.20
Current fulfillment fee: $3.06 (small standard)
Referral fee: 15%
Monthly storage: $0.08
Monthly units: 310

SKU: DIFFUSER-SM
Sell price: $24.99
COGS: $7.50
Current fulfillment fee: $3.06 (small standard)
Referral fee: 15%
Monthly storage: $0.11
Monthly units: 185

SKU: CANDLE-LG
Sell price: $28.99
COGS: $8.80
Current fulfillment fee: $5.40 (large standard — NOT affected by
this fee change)
Referral fee: 15%
Monthly storage: $0.16
Monthly units: 240
01

Amazon publishes fee changes in the Seller Central news section, usually 30-60 days before they take effect. Set up a calendar alert for January (when most fee changes go live) so you can run this analysis with time to act.

02

A $0.25 fee increase looks small per unit but compounds fast. On a SKU doing 300 units/month, that's $900/year — often enough to push a marginal SKU from barely profitable to losing money.

03

Don't automatically raise prices on every affected SKU. Check competitors first — if the fee increase hits the whole category, competitors face the same pressure and the market may support a price increase. If you sell a commodity product where you can't differentiate on price, you may need to absorb or cut costs instead.

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