Just announced Amazon fuel and inflation surcharge: what it means to you
Amazon is trying to offset the rising cost of gas with a new fuel and inflation surcharge. The 5% surcharge will take effect on April 28, according to a note obtained by CNN. The e-commerce giant will be collecting 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 the storage, packaging, and shipping of products to consumers. A report by Jungle Scout (PDF) shows that nearly 89% of Amazon’s 2 million third-party sellers used Fulfillment by Amazon (FBA) services in 2021.
“Consumers will lose,” Dan Brownsher told Bloomberg. He runs Channel Key, a Las Vegas-based e-commerce consulting firm with over 50 customers selling products on Amazon. “Amazon already raised their fees in January, so sellers will have to raise their prices,” Brownsher said.
Amazon joins Uber, FedEx with new fuel surcharges
Amazon isn’t the only company adding a fuel surcharge. As inflation rises and the cost of gas rises, companies like Uber, FedEx and UPS have also started charging fuel surcharges. Most airlines also apply fuel surcharges to travelers.
For its part, Amazon said it was trying to absorb the cost of inflation. According to the company, this is the first time in its history that it has imposed a premium on its sellers.
“In 2022, we expected a return to normal with the easing of Covid-19 restrictions around the world, but fuel and inflation presented further challenges,” Amazon wrote in a note obtained by CNN. “It is unclear whether these inflationary costs will rise or fall, or how long they will persist.”
What Amazon’s fuel and inflation fees mean to you
We still don’t know how these new charges could affect this year’s Prime Day deals, but for consumers looking to cut costs, it means another potential blow to the wallet as third-party sellers are likely to pass the costs on to buyers. .
Earlier this year, the cost of an Amazon Prime membership also increased from $ 119 to $ 139 per year. At the time, Amazon said the price increase was a result of the continued expansion of benefits for Prime members and the increase in 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 12 Amazon Buying Tricks All Prime Members Show and see the only Amazon tool you need to use before clicking Buy. Also, if you are a Prime member, be sure to check out our list of the best Prime member benefits to get the most out of your membership.