Amazon adds 5% fuel and inflation surcharge

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The e-commerce giant said the new fee will begin on April 28 and will be imposed as inflation has worsened significantly in recent months.

“In 2022, we expected a return to normalcy as Covid-19 restrictions eased around the world, but fuel and inflation have presented further challenges,” Amazon wrote in a memo provided by the company to CNN. “It’s unclear whether these inflationary costs will rise or fall, and how long they will last.”

Amazon spokesperson Patrick Graham told CNN that the surcharge only applies to fees paid by merchants who choose to use Amazon’s fulfillment services, which include storing, packaging and shipping products. Other merchants who do not use Fulfillment by Amazon are not affected. News of the surcharge was first reported by Bloomberg News.
The rate hike is the latest example of how companies are responding to rising energy and other costs. Uber and Lyft recently started offering temporary fuel surcharges for rides, and airlines have increased airfares.

Amazon’s rate hikes for sellers could translate into higher costs for consumers as companies look to pass the rising costs on to their customers.

Suppliers pushed prices sharply up 11.2% in March, the highest number dating back to 2010, the Bureau of Labor Statistics said Wednesday. Consumer prices rose 8.5% year-on-year in March, the largest jump since 1981.

Amazon said in its memo that the company has tried to minimize the impact of inflation.

“Like many, we have experienced significant cost increases and absorbed that where possible to reduce the impact on our retail partners,” Amazon said. “When we increased rates, we were focused on addressing ongoing costs and making sure our rates were competitive with other service providers.”



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