Amazon to Charge Merchants 5 Percent Surcharge for US Fulfillment Services as Fuel Costs Rise

Amazon will impose an average 5 percent fuel and inflation surcharge on merchants to warehouse.

Advertisement
By Reuters | Updated: 14 April 2022 10:29 IST
Highlights
  • Amazon said the new fee will begin on April 28
  • Amazon's new surcharge is not permanent
  • Higher wages and labour-related expenses are the reasons behind this move

Sellers can avoid the higher cost by shipping goods to customers directly

Photo Credit: Twitter/ Amazon

Amazon on Wednesday said it will impose an average 5 percent fuel and inflation surcharge on merchants to warehouse and ship their products in the United States, in response to rising costs.

It is Amazon's first such surcharge and follows months of higher wage and labour-related expenses that have chipped away at the online retailer's profit.

Advertisement

Effective April 28, Amazon will charge an average 24 cents more per unit it stores and ships through its Fulfillment by Amazon (FBA) service. The surcharge, which is not permanent, is "a mechanism broadly used across supply chain providers," Amazon wrote in a message to merchants, 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 said. "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 only announced a surcharge in the United States, its biggest market. While sellers can avoid the higher cost by shipping goods to customers directly, many rely on FBA for eligibility in Amazon's fast-delivery club Prime.

Amazon said its fulfillment service "continues to cost significantly less than alternatives."

Advertisement

© Thomson Reuters 2022


Can OnePlus 10 Pro beat iPhone 13 Pro and Galaxy S22 Ultra? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Samsung Galaxy S26 FE Review: Near-Flagship Specs, But at What Cost?
  2. Oppo F35 Pro 5G Review: An 8,000mAh Battery and a Lot to Like
  3. JPMorgan Brings JPM Coin to Ethereum for Institutional Payments
  4. Vivo X500 Ultra Could Launch Next Year With This Flagship Snapdragon SoC
  5. OnePlus 16 vs iQOO 16: Price and Specifications Compared
  6. Here's When Apple's 'Pro and Tell' Launch Event Takes Place
  7. Samsung Galaxy F70 5G With a 5,000mAh Battery Goes on Sale in India
  1. Samsung Galaxy F70 5G With 5,000mAh Battery, 50-Megapixel Camera Goes on Sale in India: Price, Offers
  2. Apple ‘Pro and Tell’ Event Set for Next Week; First MacBook With Touchscreen, New iPad Mini and More Expected to Launch
  3. Cysic Shuts Down Bridge After Attacker Illegally Creates 10 Million CYS Tokens
  4. JPM Coin Arrives on Ethereum as JPMorgan Expands Institutional Payments
  5. Vivo V80 FE Reportedly Spotted on BIS Certification Website, India Launch Seems Imminent
  6. Airtel’s New Recharges in India Announced: Rs. 185, Rs. 203 and Rs. 206 Voice-Only Plans Details
  7. Vivo X500 Ultra Leak Reveals Launch Timeline, Chipset, Display and Key Specifications
  8. iQOO Neo 12 Launch Date Announced; Design, Colour Options Teased
  9. Qubic Halts Chain as Attacker Exploits Weak Seeds to Drain 1,400 Wallets
  10. iPhone Duo Battery Capacity Revealed Days Before Foldable Goes on Sale
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.