Amazon sellers in the U.S. who use the company’s packaging and delivery fulfillment service will see a 5 percent surcharge on shipping due to rising fuel prices and growing inflation.
It is Amazon’s first such surcharge and follows months of higher wage and labor-related expenses that have impacted the retailer’s profit. The fee becomes effective April 28 and is “subject to change,” the company said in a notice to sellers obtained by numerous media outlets.
“In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” the memo said, according to CNBC. “It is still unclear if these inflationary costs will go up or down or for how long they will persist, so rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time, a mechanism broadly used across supply chain providers.”
Sellers who use third-party delivery services or who ship orders directly will not be affected by the surcharge.
Of Amazon’s over two million third-party sellers, 89 percent use FBA to leverage the retailer’s supply chain, warehouses and shipping operations, reports Jungle Scout research.
Amazon added that even with the addition of the surcharge, its fulfillment rates “continue to cost significantly less than alternatives.”
FedEx charges a fuel surcharge of 49 cents per unit, while UPS charges 42 cents, according to CNBC. Amazon’s surcharge is 24 cents.
Inflation in the U.S. is at its highest point in the last 40 years, with consumer prices surging and supply chains facing disruptions. Gas prices have also hit record highs, driven up in part by Russia’s invasion of Ukraine.
In 2021, sellers paid Amazon about $103 billion in fees, according to The Associated Press, which made up about 22 percent of Amazon’s revenue.
