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Amazon Prices May Increase with New “Fuel and Inflation” Surcharge

The Amazon logo over a stack of money.

Due to rising costs, Amazon will collect a new “fuel and inflation” surcharge from third-party sellers that use its fulfillment service. This new surcharge, which goes into effect on April 28th, increases fulfillment fees by around 5%. Customers are likely to feel the burn, as most items on Amazon come from third-party sellers.

In a conversation with CNBC, Amazon says that it “expected a return to normalcy as Covid-19 restrictions around the world eased, but fuel and inflation have presented further challenges.” The company also notes that this fee is probably temporary.

Shoppers may notice increased prices when purchasing large or heavy products. Things like TVs, appliances, and furniture are already expensive to ship, so in some cases, that 5% surcharge may increase fulfillment fees by around $8. (Shipping small and lightweight items costs about $0.25 more with this surcharge.)

This news is frustrating for several reasons. Amazon reported a 22% increase in net sales throughout 2021, yet it’s increased the price of Amazon Prime, Music Unlimited, and now, its fulfillment service. But for what it’s worth, other companies are going a bit more aggressive with the fuel fees.

As of April 11th, UPS collects a fuel surcharge of 16.75%, and FedEX collects a whopping 21.75% fuel surcharge for domestic deliveries. These fees are likely to increase every month until the economy stabilizes. With that in mind, Amazon’s 5% surcharge doesn’t seem that unreasonable.

Source: Amazon via CNBC

Andrew Heinzman Andrew Heinzman
Andrew is the News Editor for Review Geek, where he covers breaking stories and manages the news team. He joined Life Savvy Media as a freelance writer in 2018 and has experience in a number of topics, including mobile hardware, audio, and IoT. Read Full Bio »