E-commerce giant Amazon (AMZN) says it will levy a 5% fuel and inflation fee on online
merchants that use its shipping services, a move that could lead sellers to raise prices.
The surcharge, which is scheduled to begin on April 28, will apply to U.S. sellers who use the
“Fulfillment by Amazon” service that stows, packs and ships products.
In March, U.S. consumer prices surged 8.5% from a year earlier, the biggest jump since 1981.
Gasoline prices, already high, have also soared since Russia invaded Ukraine. The spiraling
prices have prompted a range of companies to take action to offset rising costs.
Amazon merchants were already grappling with cost-related fee hikes that took effect in
January and averaged 5.2%.
In an email sent to merchants, Amazon said it has made big investments since the start of the
pandemic to meet surging demand. Those include doubling capacity, adding 750,000
employees, and raising the average Amazon warehouse employee wage to $18 U.S. from $15
U.S.
Amazon’s relationship with merchants has been difficult in recent years. Sellers have
complained to regulators that the company’s power lets it dictate terms. Besides paying Amazon
to handle shipping, merchants say they are compelled to buy advertising to make their products
stand out on Amazon.com.
Analysts have speculated that the 5% surcharge could lead merchants to pass on the additional
cost to consumers in the form of higher prices.
Amazon stock is down nearly 10% year to date at $3,110.82 amid a broader rout in shares of
technology companies.
