Amazon adding 5% fuel, inflation surcharge to sellers’ fees

Amazon announced it is adding a 5% “fuel and inflation surcharge” to fees used by third-party sellers who use its fulfillment services.

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The e-commerce giant announced the new fees on its website on Wednesday, adding that the surcharges would apply to all items shipped from fulfillment centers beginning April 28.

The Seattle-based company said its costs had risen since the beginning of the COVID-19 pandemic due to increases in hourly wages, the hiring of workers and the construction of more warehouses, The Associated Press reported.

Bloomberg News was the first outlet to report the surcharge.

Federal data released on Tuesday showed that inflation hit 8.5% in March, the fastest 12-month pace since 1981, according to The New York Times. Gasoline prices have risen 48% since last year, the newspaper reported.

“The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and small and light items,” the notice stated, according to CNBC.

Amazon announced fee increases in November 2021 that went into effect in January, the Times reported. On Wednesday, the company told sellers that those increases were insufficient.

“In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” Amazon said.

Amazon already collects fees from sellers who use Fulfillment by Amazon, or FBA, according to CNBC. Merchants pay to have their inventory stored in Amazon’s warehouses and to utilize the company’s supply chain and shipping operations, the network reported.

Approximately 89% of Amazon’s 2 million-plus sellers used FBA in 2021, according to a report from Jungle Scout.

Sellers paid Amazon $103 billion in fees last year, which is 22% percent of the company’s revenue, the Times reported.

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