May 26, 2022

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Amazon adds 'fuel and inflation surcharges'

Amazon adds ‘fuel and inflation surcharges’

Last Wednesday, Amazon announced that for the first time in the company’s history, it would charge sellers a “5% fuel surcharge and inflation.”

to me CNN BusinessThe new fees are being imposed because “inflation has worsened significantly in recent months.”

In a company-wide note, Amazon said: “In 2022, we expected to return to normal life with the relaxation of Covid-19 restrictions worldwide, but fuel and inflation posed more challenges.”

“It is unclear whether these inflationary costs will rise or fall, or how long they will last,” the company said.

Patrick Graham, a spokesperson for the company, said the fee surcharge only applies to fee rates paid by sellers who choose to use Amazon’s fulfillment services. These services include warehousing, packaging and shipping of products.

Reportedly, sellers who do not use Amazon Fulfillment Services will not be affected.

Amazon’s fees are the latest example of how companies are reacting to rising energy costs and the increasing general cost of goods and services due to inflation.

Last month, Lyft, the popular passenger service, announced that it was adding an additional 55 cents surcharge for each ride served in order to offset higher gasoline prices.

News letters mentioned That all money made through this surcharge will be returned directly to Lyft drivers and that it will remain in place for “at least 60 days”.

In mid-March Uber announce An initiative similar to that of their competitor. Uber announced that it will charge an additional fee of 45 to 55 cents on all of its rides and add an additional fee of 35 to 45 cents on all Uber Eats deliveries.

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However, drivers said the additional compensation they would receive from their employers was not enough.

According to a blog from “The Rideshare Guy,” 43% of Uber and Lyft drivers said they’ve been driving fewer cars or abandoning their vans due to the high cost of fuel.

These high costs, and the few relief drivers they received, prompted them to stage a protest in front of Uber’s headquarters in Manhattan.

New Amazon surcharges for its sellers could trickle down and affect consumers as retailers seek to offset the increased cost of hosting their business on Amazon.

The Bureau of Labor Statistics said suppliers raised their prices by 11.2% in March as inflation soared 8.5% on an annual basis.

In the company-wide memo, Amazon said: “Like many, we have seen significant cost increases and have internalized them, where possible, to reduce the impact on our selling partners. When we increased fees, we focused on addressing enduring costs and ensuring that our fees were competitive with those of our service providers. others”.