Buzz Update Amazon adds 5% fuel, inflation surcharge to sellers TOU

Buzz Update Amazon adds 5% fuel, inflation surcharge to sellers


Amazon adds 5% fuel, inflation surcharge to sellers

Amazon is starting to charge extra surcharges for fuel and inflation to active sellers on its platform – a change that has been implemented as the e-commerce giant and other major companies struggle with rising operating costs.

The Seattle-based company said the 5% surcharge would take effect on April 28 and would apply to sellers using its “Fulfillment by Amazon” service.

Fees contribute to higher prices for consumers as sellers spend in addition to cost to the public.

Third-party vendors who use the program may store the inventory in Amazon warehouses and use its shipping services. In a message to sellers, Amazon stated that the fee was not permanent and was “a widely used mechanism among supply chain providers” – a clear indication of other shipping services implementing similar fees.

“We have experienced significant cost increases to reduce the impact on our sales partners and realize them where possible,” Amazon said in a statement. According to Reuters. “By 2022, we expect the global easing of COVID-19 sanctions to return to normal, but energy and inflation pose more challenges.”

Surcharge can lead to higher prices for customers.
CQ-Roll Call by Getty Images, Inc.

Businesses and American consumers face similarly high costs due to inflation – a rise of 8.5% in March, the sharpest growth rate since 1981. The gasoline price index rose 18.3% in March and was one of the key factors in the rise in inflation. .

Despite the surcharge, Amazon says its fulfillment program “continues at a much lower cost than the alternatives.”

The company estimates that the fuel and inflation surcharge will average 24 cents per unit – lower than the surcharges implemented by UPS and FedEx, According to CNBC.

Energy surcharges have become more common in companies that are active in transportation or shipping services. Ride-sharing companies have implemented gas fees in recent weeks to ease the pressure on Uber and Lyft drivers.

Amazon trucks
Amazon says its fulfillment service is still cheaper than alternatives.
Bloomberg by Getty Images

According to the latest data from the AAA, gas prices hit an all-time high last month and are still hovering above $ 4 per gallon nationwide.

Rising operating fees are a source of pressure on Amazon and its partners. With a national unemployment rate of just 3.6%, large and small businesses competing for labor are increasingly suffering from labor shortages across the country.

Amazon has increased the average starting hourly wage for warehouse workers to $ 18 per hour as part of its hiring effort. The company has also revived a recruitment campaign for the graduation of high school students who are at least 18 years old, which was paused during the COVID-19 pandemic.

With post wires

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