Fuel and inflation surcharges are being implemented by Amazon in an attempt to offset the increasing cost of petrol. Unconfirmed reports suggest that the 5 percent fee will go into effect on April 28. Third-party sellers that utilise Amazon’s fulfilment services will be responsible for collecting the money.
The premium will not apply to third-party merchants who do not use Amazon’s fulfilment services. Products are stored, packed and sent to customers via Amazon’s fulfilment services. Nearly 89% of Amazon’s 2 million third-party merchants utilised Fulfillment by Amazon (FBA) services in 2021, according to a Jungle Scout analysis (PDF).
Dan Brownsher told Bloomberg that “consumers will lose.” More than 50 of his clients are selling their items on Amazon via his Las Vegas e-commerce consulting firm, Channel Key. “Sellers will have to hike pricing since Amazon already raised fees in January,” said Brownsher.
Amazon joins Uber, FedEx with new fuel surcharges
Fuel surcharges are not exclusive to Amazon; other companies are doing the same thing. Companies including Uber, FedEx, and UPS have begun collecting fuel surcharges in response to rising inflation and rising gas prices. Fuel surcharges are being implemented by the majority of airlines as well.
Amazon has said that it has made an effort to offset the impact of inflation. For the first time in its existence, the firm is charging a fee to its vendors.
Covid-19 limitations throughout the globe were supposed to lift in 2022, but Amazon stated in a document obtained by CNN: “Fuel and inflation have provided more hurdles.” Inflationary expenses are “uncertain whether they will rise or fall, and how long they will last.”
What Amazon’s fuel and inflation fee means for you
This year’s Prime Day bargains may or may not be affected by the increased fees, but buyers trying to save money should be aware that third-party vendors will likely pass the costs on to customers.
The price of an Amazon Prime membership went up from $119 to $139 earlier this year. A surge in labour and transportation expenses was cited as a factor in Amazon’s decision to raise prices at that time.