Amazon is trying to offset the rising cost of gas with a new fuel and inflation surcharge. The 5% surcharge will take effect April 28, according to a memo obtained by CNN. The e-commerce giant will collect it from third-party sellers who use its fulfillment services.
Third-party sellers who do not rely on Amazon fulfillment services will not be affected by the surcharge. Amazon’s fulfillment services include storing, packaging, and shipping products to consumers. A Jungle Scout report (PDF) shows that nearly 89% of Amazon’s 2 million third-party sellers used Fulfillment by Amazon (FBA) services in 2021.
“Consumers will lose out,” Dan Brownsher told Bloomberg. He runs Channel Key, a Las Vegas e-commerce consulting business with over 50 clients selling products on Amazon. “Amazon already raised fees in January, so sellers will have to raise prices,” Brownsher said.
Amazon joins Uber and FedEx with new fuel surcharges
Amazon isn’t the only company adding a fuel surcharge. As inflation soars and the cost of gas rises, companies like Uber, FedEx, and UPS have also started charging fuel surcharges. Most airlines also charge travelers fuel surcharges.
For its part, Amazon said it tried to absorb the cost of inflation. According to the company, this is the first time in its history that it has imposed a surcharge on its sellers.
“In 2022, we expected a return to normal as Covid-19 restrictions eased around the world, but fuel and inflation presented new challenges,” Amazon wrote in a note obtained by CNN. . “It is unclear whether these inflationary costs will rise or fall, or for how long they will persist.”
What Amazon’s Fuel and Inflation Charges Mean for You
We still don’t know how these new fees might affect this year’s Prime Day deals, but for consumers looking to cut costs, it means another potential impact on the wallet, as third-party sellers will likely pass the costs on to buyers.
Earlier this year, the cost of an Amazon Prime subscription also fell from $119 to $139 per year. At the time, Amazon said the price increase was the result of continued expansion of Prime member benefits and rising wages and transportation costs.
However, there are some things you can do to save money on Amazon. Be sure to check out our guide to the 12 Amazon Shopping Tips Every Prime Member Knows and see the one Amazon tool you need to use before you click buy. Plus, if you’re a Prime subscriber, be sure to check out our list of the best Prime member benefits to get the most out of your subscription.