Amazon stated that it planned to add a fuel and inflation surcharge of around 5%. This will add to the existing fees to collect from US third-party sellers. These sellers as those who use the company’s fulfillment services. The surcharge calls for “subject to change” as per the inflation charges. It was concerning the CNBC. The inflation sought the retailer to offset its own cost.
The company stated in a notice. The fee will come into effect within two weeks. Though, this is subject to change. The notice stated that “The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and Small and Light items,” The surcharge will apply to all units shipped from fulfillment centers starting April 28.”
The soaring inflation is forcing the sellers to offset some of their costs by passing fees along to sellers.
Amazon already collects fees from sellers who use Fulfillment by Amazon. Merchants pay to keep inventory stored in Amazon’s warehouses. This is also to make use of the company’s supply chain and shipping operations. According to Jungle Scout, Some 89% of Amazon’s 2 million-plus sellers used FBA in 2021. Jungle Scout creates product research software for Amazon sellers.
An Amazon spokesperson said in an email to CNBC stated that in 2022 they expect to return to normalcy as Covid-19 restrictions around the world eased, but fuel and inflation have presented further challenges.
It is still unclear if these inflationary costs will go up or down or for how long they will persist, so rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time — a mechanism broadly used across supply chain providers.
Amazon stated that its fuel and inflation surcharge is 24% per unit. This is below the UPS fuel surcharge of 42 cents. And FedEx’s fee of 49 cents.