Amazon adds 5% 'fuel and inflation surcharge' to seller fees

Expert says Amazon taking advantage of the moment

Amazon is taking a step to offset its rising costs, announcing on Wednesday it will add a 5% “fuel and inflation surcharge” to fees it charges third-party sellers who use the e-commerce giant's fulfilment services.

The Seattle-based company said on its website that the added fees, which take effect April 28, are “subject to change” and will apply to both apparel and non-apparel items.

The latest fee hike follows one announced in November and went into effect in January. Amazon didn't immediately respond to a request for further details on the recent move. But in a notice sent to sellers on Wednesday, the company said its costs had gone up since the beginning of the COVID-19 pandemic due to increases in hourly wages, the hiring of workers and construction of more warehouses.

It said it had absorbed costs whenever possible, and only increased fees to address permanent costs and to be competitive with other providers. Amazon competitors in the United States FedEx and UPS both have fuel surcharges.

“In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” the company said in the notice.

U.S. Federal data released on Tuesday showed the country’s inflation jumped 8.5% in March, its fastest pace in more than 40 years. Gasoline prices have rocketed 48% in the past 12 months.