In response to the rising inflation, Amazon announced Wednesday that it will add a 5% “fuel and inflation surcharge” to the fees it charges third-party sellers who use the e-commerce giant’s fulfillment services.
Making the statement on their website, Amazon wrote that the added fees, which take effect April 28, are “subject to change” and will apply to both apparel and non-apparel items.
Source: Fox Business (Reuters / Reuters Photos)
In a notice sent to sellers Wednesday, the company said its costs had gone up since the beginning of the COVID-19 pandemic due to increases in hourly wages, the hiring of workers, and the construction of more warehouses. It said it had absorbed costs whenever possible, and only increased fees to address permanent costs and to be competitive with other providers. Amazon competitors FedEx and UPS both have fuel surcharges.
“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 company said in the notice.
As it stands, inflation in the US jumped to 8.5% in March, which is the fastest pace in more than 40 years. Gasoline prices have rocketed 48% in the past 12 months.
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