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Egyptian Gazette
Home Business

Amazon adds 5% ‘fuel and inflation surcharge’ to seller fees

by News Wires
April 15, 2022
in Business
A file photo showing the company logo graces one of the doors of a delivery van for Amazon in Denver. Amazon said that it will add a 5% "fuel and inflation surcharge" to fees it charges third-party sellers who use the retailer's fulfillment services as the company faces rising costs.

A file photo showing the company logo graces one of the doors of a delivery van for Amazon in Denver. Amazon said that it will add a 5% "fuel and inflation surcharge" to fees it charges third-party sellers who use the retailer's fulfillment services as the company faces rising costs.

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BUENOS AIRES – Amazon is taking a step to offset its rising costs, announcing it will add a 5% “fuel and inflation surcharge” to fees it charges third-party sellers who use the e-commerce giant’s fulfillment services.

The Seattle-based company said on its website that the added fees, which take effect April 28, are “subject to change” and will apply to both apparel and non-apparel items.

The latest fee hike follows one announced in November and went into effect in January. Amazon didn’t immediately respond to a request for further details on the recent move.

But in a notice sent to sellers, 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 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 according to AP.

Federal data released showed inflation jumped 8.5% in March, its fastest pace in more than 40 years. Gasoline prices have rocketed 48% in the past 12 months.

Though the company is blaming inflation and rising fuel costs for the surcharge, Stacy Mitchell, co-director for the anti-monopoly group Institute for Local Self-Reliance, criticized the announcement, saying Amazon was taking advantage of the moment.

“Amazon keeps increasing its fees on the sellers that have to depend on its platform,” Mitchell said, adding the new fees are a way “to take more money out of the pockets of independent businesses and put it into Amazon´s coffers.

Tags: AmazonBUSINESSCommerce

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