Amazon To Charge 5% Fuel and Inflation Surcharge Due To Rising Costs

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Amazon will levy an average fuel and inflation surcharge of 5% on fees it charges to third-party sellers who use its fulfillment services.

While the additional charges come into force on April 28, the company said they are “subject to change” and will apply to both clothing and non-clothing items.

Amazon identified several factors that led to this decision, including the COVID-19 pandemic, hourly wage increases, hiring and building more warehouses, and inflation.

The company said it had absorbed costs wherever possible and only increased fees to cover ongoing costs and be competitive with other providers.

“We have experienced significant cost increases and absorbed them, wherever possible to reduce the impact on our selling partners. 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 statement said.

Amazon’s surcharge applies only to merchants in the United States, but sellers can avoid the higher cost by shipping goods directly to customers.

The sources for this piece include an article in Reuters.

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