Amazon to Add 3.5% Fulfillment Surcharge as Fuel Costs Rise
Amazon will add a 3.5% fuel and logistics surcharge to the fulfillment fees charged to third-party merchants, as per war in the Middle Eastwhich began with the American and Israeli strikes against Iran in late February, continues to drive up fuel prices.
The fees will be applied to third-party FBA sellers in the United States and Canada starting April 17, Amazon said in a note to sellers Thursday.
“High fulfillment and logistics costs have increased operating costs across the industry,” Amazon wrote in its report. announcement. “To date, we have absorbed these cost increases. However, like other major carriers, when costs remain high, we apply temporary surcharges on our processing fees to recover some of the actual cost increases we experience.”
Amazon said the new surcharge is “significantly lower” than what other major carriers charge. The surcharge will average about 17 cents per unit in the United States, but the cost will vary depending on the size of the item, Amazon said.
Amazon’s announcement comes amid rising gas prices in much of the world as war intensifies. The national average price of a gallon of gasoline exceeded $4 per gallon at the end of March for the first time since August 2022, an increase of more than $1 per gallon in one month.
Amazon’s new fees follow a similar surcharge offered last month by the U.S. Postal Service. The USPS announced it would implement a temporary 8% surcharge starting in April “to better align its transportation costs with the market.” The proposed increase, which requires approval from the Postal Regulatory Commission, will affect Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select.
Shipping competitors, such as FedEx and United Parcel Service, have had fuel surcharges for years. Due to the current oil crisis and rising gas prices, these fees have been increased in recent weeks.
