Amazon adds a ‘fuel and inflation surcharge’

Last Wednesday, Amazon announced that for the first time in company history, it would charge sellers a “5% fuel and inflation surcharge.”

According to CNN Business, the new fees are imposed because “inflation has worsened significantly in recent months.”

In a company-wide memo, Amazon said: “In 2022, we expected to be back to normal with the easing of Covid-19 restrictions around the world, but fuel and inflation presented other challenges.”

“It is unclear whether these inflationary costs will rise or fall, or how long they will persist,” the company said.

Company spokesman Patrick Graham said the surcharge only applies to rates paid by sellers who choose to use Amazon’s fulfillment services. These services include storage, packaging and shipping of products.

Apparently, sellers who don’t use Amazon’s fulfillment services won’t be impacted.

Amazon’s fees are the latest example of how businesses are responding to soaring energy costs and the general rise in the cost of goods and services due to inflation.

Last month, Lyft – the popular ride-sharing service – announced it was adding an extra 55 cents to every ride taken to offset soaring gas prices.

ABC News reported that all money generated from this surcharge will be donated directly to Lyft drivers and will remain in place for “at least the next 60 days.”

In mid-March, Uber announced an initiative similar to that of its competitor. Uber has announced that it will apply a 45-55 cent surcharge on all its rides and add a 35-45 cent surcharge on all Uber Eats deliveries.

However, drivers said the surcharge refunds they would receive from their employers were not enough.

According to a blog by “The Rideshare Guy,” 43% of Uber and Lyft drivers said they were driving less or quitting rideshare gigs due to rising fuel costs.

These rising costs and the little relief drivers have received prompted them to stage a protest outside Uber’s headquarters in Manhattan.

The new surcharge that Amazon is imposing on its sellers could ripple through and hurt consumers as retailers seek to pass on the rising cost of hosting their businesses on Amazon.

The Bureau of Labor Statistics said suppliers raised prices 11.2% in March as inflation rose 8.5% year-over-year.

In the company-wide memo, Amazon said: “Like many, we have experienced significant cost increases and have absorbed them, where possible, to reduce the impact on our business partners. . When we increased fees, we focused on ongoing costs and making our fees competitive with those of other service providers. »

Leave a Comment