Amazon.com will impose a 3.5% fuel surcharge on independent merchants on its platform later this month, a move that could lead to price increases for consumers.
The temporary fee will take effect on April 17 and applies to most sellers who use Fulfillment by Amazon (FBA) services to store inventory and fulfill orders. As the conflict in Iran enters its second month and energy costs continue to climb, the e-commerce giant has become the latest company to introduce a surcharge to offset rising expenses.
Amazon stated that it had previously absorbed the increases in fuel and logistics costs itself. A company spokesperson said, "However, similar to other major delivery companies, when costs remain elevated for an extended period, we implement a temporary surcharge to partially cover these costs."
United Parcel Service (UPS) and FedEx have also recently increased their fuel surcharges due to rising oil prices. Last week, the U.S. Postal Service announced its first-ever fuel surcharge: it plans to charge an 8% fee on packages from April 26 to January 17.
Starting April 17, Amazon's fuel and inflation-related surcharge will apply to sellers in the United States and Canada using Fulfillment by Amazon (FBA). Sellers using the "Buy with Prime" and multi-channel fulfillment services will see the surcharge applied starting May 2.
There are approximately 2 million sellers on Amazon's global platform. The company stated that its surcharge rate is "significantly lower than other major delivery companies" and is calculated based on the seller's shipping fees, not the product's sale price. FedEx and UPS adjust their fuel surcharges weekly based on prices published by the U.S. Department of Energy.
On average, Amazon said sellers using FBA services will pay an additional 17 cents per item, with the exact amount varying by product size. How much of these costs are ultimately passed on to consumers is at the discretion of the individual sellers.
Amazon did not specify how long the fuel surcharge will remain in effect.