Amazon raises selling fees with the addition of a 5% fuel and inflation surcharge

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Amazon announced on Wednesday, April 14 that it would add a 5% fuel and inflation surcharge to the fees it charges third-party sellers who use the company’s fulfillment services.

The new fees are to be officially implemented on April 28. Amazon said it has increased seller fees to offset rising costs. The company also noted that the fees are still “subject to change” and will apply to apparel and non-apparel goods.

the Associated press further reported that the latest fee increase follows the increase announced in November and which took effect in January of this year. Although Jeff Bezos’ e-commerce company did not immediately respond to inquiries related to its recent move, a notice sent to sellers indicated that costs had increased since the start of the COVID-19 pandemic.

Amazon mentioned that its costs have increased mainly due to wage increases, the construction of new warehouses and the hiring of new workers. But then the company said it also tries to cut costs by absorbing costs as much as it can and whenever possible.

It was explained that it only increased the fees to meet ongoing costs and to stay competitive with competitors such as UPS and FedEx, which have also already added fuel surcharges. According to recent data released by officials, inflation rose by 8.5% last month and this is the fastest pace in more than 40 years. It has also affected gas prices which have jumped 48% in the past 12 months.

“In 2022, we expected a return to normal as Covid-19 restrictions eased around the world, but fuel and inflation presented other challenges,” Amazon wrote in a note. was provided to CNN Business. “It’s unclear whether these inflationary costs will rise or fall, or how long they will persist, so rather than a permanent change in fees.”

Now, while Amazon says inflation and rising fuel costs were to blame for its new surcharge, Stacy Mitchell, co-director of the Institute for Local Self-Reliance, an anti-monopoly group, says that they thought the company was only profiting from the current situation.

“Amazon keeps increasing its fees on sellers who have to rely on its platform,” she said. “The new fees are a way to take more money out of independent businesses’ pockets and into Amazon’s coffers.”

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