Amazon to Charge Merchants 5% Fuel and Inflation Fee

Faced with surging energy prices and inflation across all sectors of the global economy, Amazon (NASDAQ: AMZN) plans to charge businesses using its website an additional fee to make up for growing price pressures.

According to an individual familiar with the matter and cited by Bloomberg, Amazon is planning to tack on a 5% fuel and inflation charge to US merchants using its Fulfillment by Amazon service, where the company stores, packages, and ships goods for independent sellers. The e-commerce giant plans to announce the surcharge to sellers via an emailed statement later on Wednesday.

“Like many, we have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners,”  the email allegedly reads. “In 2022, we expected a return to normalcy as Covid-19 restrictions around the world eased, but fuel and inflation have presented further challenges. It is still unclear if these inflationary costs will go up or down, or for how long they will persist.”

Inflationary pressures have intensified in recent months, particularly after Russia’s military operation in Ukraine sent the price of fuel through the roof. In the email, Amazon said it has suffered from unprecedented demand since the beginning of the pandemic, prompting the company to double its employee count by 750,000 workers, as well as raise the average warehouse employee wage from $15 per hour to $18 per hour.

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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