Amazon slaps US sellers with 5% fuel and surcharges for inflation

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Amazon On Wednesday, it said it plans to add fuel surcharges and inflation of about 5% to existing fees it collects from third-party sellers in the United States that use the company’s fulfillment services.

The fees will take effect in about two weeks, and are “subject to change,” the company said in a notice to sellers seen by CNBC.

“The surcharge will apply to all types of products, such as non-apparel, apparel, dangerous goods, and small and light items,” the notice said. “The surcharge will apply to all units shipped from shipping centers starting April 28.”

With high inflation And oil prices are on the rise, Amazon is trying to offset some of its costs by passing fees on to sellers

Amazon already collects fees from sellers who use Fulfillment by Amazon or FBA. Merchants pay to store their inventory in Amazon warehouses and benefit from the company’s own supply chain and shipping processes.

About 89% of Amazon’s 2 million+ sellers used FBA in 2021, according to a report From Jungle Scout, which creates product search software for Amazon sellers.

“In 2022, we expected to return to normalcy as COVID-19 restrictions ease around the world, but fuel and inflation pose more challenges,” an Amazon spokesperson said in an email to CNBC. “It remains unclear whether these inflationary costs will rise or fall, or how long they will last, so instead of permanently changing fees, we will be using fuel surcharges and inflation for the first time – a mechanism widely used across supply chain providers.”

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Amazon said the fuel surcharge and inflation are 24 cents per unit, less than UPS Fuel cost 42 cents FedEx Fee 49 cents, as of March 21, 2022.

Watch: How Amazon plans to fix its multi-billion dollar revenue problem

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