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.
*AMAZON TO CHARGE SELLERS 5% FUEL & INFLATION SURCHARGE
*AMAZON TO BEGIN FEE APRIL 28
— zerohedge (@zerohedge) April 13, 2022
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.