Amazon to Charge Merchants 5 Percent Surcharge for US Fulfillment Services

Amazon on Wednesday mentioned it’ll impose a mean 5 p.c gas and inflation surcharge on retailers to warehouse and ship their merchandise within the United States, in response to rising prices.

It is Amazon’s first such surcharge and follows months of upper wage and labour-related bills which have chipped away on the on-line retailer’s revenue.

Effective April 28, Amazon will cost a mean 24 cents extra per unit it shops and ships by way of its Fulfillment by Amazon (FBA) service. The surcharge, which isn’t everlasting, is “a mechanism broadly used across supply chain providers,” Amazon wrote in a message to retailers, which it shared with Reuters.

“We have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners,” the message mentioned. “In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges.”

So far, Amazon has solely introduced a surcharge within the United States, its greatest market. While sellers can keep away from the upper price by delivery items to prospects instantly, many depend on FBA for eligibility in Amazon’s fast-delivery membership Prime.

Amazon mentioned its success service “continues to cost significantly less than alternatives.”

© Thomson Reuters 2022