Amazon will add a 5% surcharge for fuel and inflation

Fallout from US inflation hits 40-year high 5:20 New York (CNN Business) — Amazon said Wednesday that for the first time in the company’s history it will charge sellers a surcharge for fuel and 5% inflation. The e-commerce giant said the new fee will start on April 28 and is imposed because inflation has worsened significantly in recent months. “In 2022, we expected a return to normalcy as COVID-19 restrictions eased around the world, but fuel and inflation have presented more challenges,” Amazon wrote in a memo the company provided to CNN. . “It is not clear whether these inflationary costs will go up or down, or for how long they will persist, in lieu of a permanent rate change.” Amazon spokesman Patrick Graham told CNN that the fee surcharge applies only to fees paid by sellers who choose to use Amazon’s fulfillment services, which include storage, packaging and shipping of products. . Other sellers who do not use FBA will not be affected. News of the surcharge was first reported by Bloomberg News. The rate increase is the latest example of how companies are reacting to rising energy and other costs. Uber and Lyft recently began adding temporary fuel surcharges to rides, and airlines have increased airfares. Amazon’s fee increases for sellers could translate into higher costs for consumers, as companies seek to pass on rising expenses to their customers. Suppliers sharply raised prices 11.2% in March, the most on record dating back to 2010, the Bureau of Labor Statistics said Wednesday. Consumer prices soared 8.5% year-over-year in March, the biggest jump since 1981. Amazon said in its memo that the company has tried to minimize the impact of inflation. “Like many, we have experienced significant cost increases and absorbed them, where possible, to reduce the impact on our selling partners,” Amazon said. “When we raised rates, we focused on addressing ongoing costs and making sure our rates were competitive with those charged by other service providers.”