Amazon adds 5% fuel and inflation surcharge

The e-commerce giant said the new fee will take effect on April 28 and is being introduced due to a significant deterioration in inflation in recent months.

“We expected a return to normal in 2022 as Covid-19 restrictions eased around the world, but fuel and inflation created further challenges,” Amazon said in a memo shared with CNN by the company. “It is not clear whether these inflationary costs will increase or decrease, and how long they will persist.”

Amazon spokesman Patrick Graham told CNN that the fee surcharge only applies to rates paid by sellers who choose to use Amazon’s services, which include storage, packaging and shipping of goods. Other sellers who do not use Fulfillment by Amazon will not be affected. The news about the surcharge was first reported earlier Bloomberg News.
The fee increase is the latest example of how businesses are responding to spikes in energy and other costs. Uber and Lyft have recently begun introducing temporary fuel surcharges for rides, and airlines are jacking up airfares.

Increasing Amazon merchant fees could lead to higher costs for consumers as businesses seek to pass on rising costs to their customers.

Suppliers hiked prices by 11.2% in March, the highest since 2010, the Bureau of Labor Statistics said Wednesday. Consumer prices rose 8.5% year on year in March, the biggest jump since 1981.

Amazon said in its memorandum that the company has tried to minimize the impact of inflation.

“Like many others, we have experienced significant cost increases and have covered them where possible to reduce the impact on our channel partners,” Amazon said in a statement. “When we raised fees, we were focused on addressing recurring costs and ensuring that our fees are competitive with those charged by other service providers.”

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