NATIONAL NEWS

Amazon adds 5% ‘fuel and inflation surcharge’ to seller fees

Apr 13, 2022, 8:36 PM | Updated: Jun 13, 2022, 3:35 pm
FILE (Photo by Leon Neal/Getty Images)...
FILE (Photo by Leon Neal/Getty Images)
(Photo by Leon Neal/Getty Images)

Amazon is taking a step to offset its rising costs, announcing Wednesday it will add a 5% “fuel and inflation surcharge” to fees it charges third-party sellers who use the e-commerce giant’s fulfillment services.

The Seattle-based company said on its website that the added fees, which take effect April 28, are “subject to change” and will apply to both apparel and non-apparel items.

The latest fee hike follows one announced in November and went into effect in January. Amazon didn’t immediately respond to a request for further details on the recent move. But in a notice sent to sellers Wednesday, the company said its costs had gone up since the beginning of the COVID-19 pandemic due to increases in hourly wages, the hiring of workers and construction of more warehouses.

It said it had absorbed costs whenever possible, and only increased fees to address permanent costs and to be competitive with other providers. Amazon competitors FedEx and UPS both have fuel surcharges.

“In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” the company said in the notice.

Federal data released Tuesday showed inflation jumped 8.5% in March, its fastest pace in more than 40 years. Gasoline prices have rocketed 48% in the past 12 months.

Though the company is blaming inflation and rising fuel costs for the surcharge, Stacy Mitchell, co-director for the anti-monopoly group Institute for Local Self-Reliance, criticized Wednesday’s announcement, saying Amazon was taking advantage of the moment.

“Amazon keeps increasing its fees on the sellers that have to depend on its platform,” Mitchell said, adding the new fees are a way “to take more money out of the pockets of independent businesses and put it into Amazon’s coffers.”

Amazon’s third-party marketplace, where independent merchants list millions of their products, is a huge part of its business. It has about 2 million sellers, and more than half the goods sold on Amazon.com come from these sellers.

Last year, sellers paid Amazon about $103 billion in fees, which made up about 22% of the company’s revenue. The online retailer said the new fees will apply to products ordered before April 28 but shipped and delivered after that date. Amazon is also expected to release its earnings report from the first three months of this year on April 28.

Amazon has long faced accusations of undercutting merchants that sell on its platform by making “knock-offs,” or very similar products, and boosting their presence on the site.

___

Associated Press journalist Manuel Valdes in Seattle contributed to this report.

KSL 5 TV Live

Top Stories

National News

FILE PHOTO...
Mark Morales, Liam Reilly and Amanda Jackson, CNN

2 law enforcement officers shot during a July Fourth festival in Philadelphia, source says

Two police officers were shot during a July Fourth celebration in Philadelphia, a law enforcement source with knowledge of the situation told CNN.
1 day ago
Robert "Bobby" E. Crimo III (Credit: Highland Park Police Department)...
Eric Levenson, Adrienne Broaddus, Shawn Nottingham and Brynn Gingras, CNN

Police have arrested a ‘person of interest’ after a mass shooting at July 4th parade in Highland Park, Illinois

Highland Park Police identified 22-year-old Robert E. Crimo III as a person of interest in connection with the Independence Day Chicago shooting.
1 day ago
First responders work the scene of a shooting at a Fourth of July parade on July 4, 2022 in Highlan...
MICHAEL TARM, KATHLEEN FOODY and ROGER SCHNEIDER, Associated Press

6 dead, 24 wounded in shooting at Chicago-area July 4 parade

Police say at least five people are dead and 19 have been taken to hospitals after a shooting at a July Fourth parade in a Chicago suburb.
1 day ago
Steve Carell and the Minions visit the Empire State Building on June 28, 2022 in New York City. (Ph...
Lindsey Bahr, AP Film Writer

‘Minions’ set box office on fire with $108.5 million debut

“Minions: The Rise of Gru” brought in an estimated $108.5 million in ticket sales from 4,391 screens in North America, Universal Pictures said Sunday.
1 day ago
...
KPTV Staff

Police: Man armed with pitchfork threatens people at Portland Water Bureau

A man broke into the Portland Water Bureau building and threatened people with a pitchfork on Friday.
2 days ago
Houston assistant police chief Chandra Hatcher briefs the media on the double shooting. (Credit: 	H...
Michelle Watson and Holly Yan, CNN

A drive-by shooting leaves a 5-year-old dead and an 8-year-old injured in Houston

Houston police are asking for the public's help in finding whoever opened fire on a car overnight, killing a 5-year-old child and injuring an 8-year-old.
2 days ago

Sponsored Articles

hand holding 3d rendering mobile connect with security camera for security solutions...
Les Olson

Wondering what security solutions are right for you? Find out more about how to protect your surroundings

Physical security helps everyone. Keep your employees, clients, and customers safe with security solutions that protect your workplace.
Many rattan pendant lights, hay hang from the ceiling.Traditional and simple lighting....
Lighting Design

The Best Ways to Style Rattan Pendant Lighting in Your Home

Rattan pendant lights create a rustic and breezy feel, and are an easy way to incorporate this hot trend into your home decor.
Earth day 2022...
1-800-GOT-JUNK?

How Are You Celebrating Earth Day 2022? | 4 Simple Ways to Celebrate Earth Day and Protect the Environment

Earth Day is a great time to reflect on how we can be more environmentally conscious. Here are some tips for celebrating Earth Day.
Get Money Online...

More Ways to Get Money Online Right Now in Your Spare Time

Here are 4 easy ways that you can get more money online if you have some free time and want to make a little extra on the side.
Lighting trends 2022...

Lighting Trends 2022 | 5 Beautiful Home Lighting Trends You Can Expect to See this Year and Beyond

This is where you can see the latest lighting trends for 2022 straight from the Lightovation Show at the Dallas World Trade Center.
What Can't You Throw Away in the Trash...

What Can’t You Throw Away in the Trash? | 5 Things You Shouldn’t Throw in to Your Trash Can

What can't you throw away in the trash? Believe it or not, there are actually many items that shouldn't be thrown straight into the trash.
Amazon adds 5% ‘fuel and inflation surcharge’ to seller fees