Amazon Adds Fuel and Inflation Surcharge for Sellers

Facing rising costs, Amazon said Wednesday it was adding its first “fuel and inflation surcharge” to the fees it collects from sellers, according to an announcement on its website, whose inventory it carries out and delivers to customers.

The surcharge, which averages 5 percent of the current fulfillment fee, will take effect on April 28.

In an email to vendors, the company said that as its costs increased, including increased wages for workers and the construction of more warehouses, it “absorbed them wherever possible, to minimize the impact on our sales partners,” but did not expect current growth in those costs.

Federal data released on Tuesday showed that inflation rose to 8.5 percent in March, the fastest pace in 12 months since 1981. Gasoline was up 48 percent from a year earlier.

Amazon announced a fee increase in November that took effect in January. On Wednesday, he told sellers that it was not enough.

“In 2022, we expected a return to normal as the worldwide Covid-19 sanctions eased, but fuel and inflation presented more challenges,” the company told sellers.

The company described the fuel surcharge as “the most widely used method in supply chain providers”. Both FedEx and UPS have fuel surcharges based on fuel cost indicators.

Most items that customers purchase from Amazon are sold by third-party vendors, who pay Amazon a referral fee for each sale and an additional fulfillment fee if they use Amazon’s warehousing and delivery services. While sellers do not need to use Amazon’s fulfillment services, the primary way is that products are eligible for the Prime label, which promises fast shipping to customers and is the main driver of sales.

Vendors paid Amazon ફી 103 billion in fees last year, about 22 percent of the company’s revenue.

Bloomberg News reported the surcharge on Wednesday before the announcement.

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