Amazon is introducing a new 3.5% “fuel and logistics-related surcharge” for third-party sellers in Canada and the U.S. as rising oil prices continue to impact the global supply chain. According to a note sent to sellers on Thursday and viewed by CNBC, the new fee will take effect on April 17.
The surcharge specifically targets sellers who use the Fulfillment by Amazon (FBA) service, which handles the picking, packing, and shipping of products. Amazon stated that the ongoing war in Iran, now entering its fifth week, has driven up operating costs across the entire logistics industry.
While Amazon has absorbed these expenses until now, the company noted that it must implement the temporary levy to recover a portion of the actual cost increases. Amazon spokesperson Ashley Vanicek told CNBC that the surcharge is “meaningfully lower” than similar fees recently applied by other major carriers like FedEx, UPS, and the U.S. Postal Service.
On average, the fee amounts to an additional 17 cents per unit, though the exact cost will vary based on the size and weight of the item.
Since the majority of the 2 million third-party sellers on the platform rely on Amazon’s fulfillment services, this new surcharge may lead to an increase in prices from third-party sellers as they look to offset the additional shipping costs. Things aren’t getting any cheaper right now so keep some tabs on your favourite third party items and start tracking to see if prices go up or not.
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