Amazon Is Going To Get More Expensive For You

Amazon is going to get more expensive… for you. It is a definitive statement that you may want to read again.

Beginning April 28, Amazon will charge sellers a 5% fuel and inflation surcharge. It’s the first such fee in company history, and it’s being imposed because inflation has worsened significantly in recent months.

Amazon says the fee surcharge applies only to fee rates paid by sellers that choose to use Amazon’s fulfillment services, which include storing, packing and shipping products. Others sellers that do not use Fulfillment by Amazon will not be impacted.

“In 2022, we expected a return to normalcy as Covid-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” Amazon wrote in a memo that was provided by the company. “It is unclear if these inflationary costs will go up or down, or for how long they will persist.”

The fee hike is the latest example of how businesses are reacting to spiking energy and other costs. Gas and diesel prices hit record highs in early March. Inflation is soaring at the fastest pace in 40 years with the Consumer Price Index (CPI) skyrocketing to 8.5 in March – the highest since 1981. The Bureau of Labor Statistics said Wednesday that suppliers raised prices by 11.2% in March, the most on records that go back to 2010.

Amazon said in its memo that the company has attempted to minimize the impact of inflation.

“Like many, we have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners,” Amazon said. “When we did increase fees, we were focused on addressing permanent costs and ensuring our fees were competitive with those charged by other service providers.”

Photo by Daniel Eledut on Unsplash