Amazon

Amazon prices are probably going up due to a new inflation surcharge

A new 5% surcharge will be imposed on sellers using Amazon’s fulfillment services.

by
Alex Gatewood
April 14, 2022

Image: KnowTechie

Amazon is about to enact a big change that could mean an increase in prices for products sold on the platform. The online retail kingpin has just announced a “fuel and inflation surcharge” for sellers who use Amazon fulfillment services.

The company revealed this new surcharge for sellers on its website earlier this week. Starting on April 28, the company will begin charging a 5 percent fuel and inflation surcharge.

The surcharge will apply to all products sold using the Fulfillment by Amazon (FBA) service.

An Amazon spokesperson spoke with CNBC about the upcoming change. “In 2022, we expected a return to normal as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” the spokesperson said.

amazon fba fee increase announcement — Screenshot: KnowTechie

A great deal of Amazon’s business comes from third-party sellers. And of its around 2 million active sellers, nearly 90 percent utilize the Fulfillment by Amazon method according to research from Jungle Scout.

That surcharge is certainly going to affect the pockets of the millions of sellers on Amazon. But what is the platform supposed to do? Inflation is at a ridiculous height and gas prices are continuing to skyrocket. A surcharge like this one, which likely won’t be permanent, seems like an appealing option.

“It is still unclear if these inflationary costs will go up or down, or for how long they will persist,” the company’s spokesperson continued. “So rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time — a mechanism broadly used across supply chain providers.”

Hopefully, the economy bounces back soon prices begin to level out again. Until that happens, though, sellers on Amazon will have to accept this new surcharge. Or try and find a better option for fulfilling orders.

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