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Amazon adds 5% surcharge for rising gas prices

Recently in an announcement, Amazon adds 5% surcharge for rising gas prices, that it will impose an average fuel surcharge and inflation of 5% on merchants.

The increase will be used to defray the costs of storing and shipping products in the United States, in response to the increase in costs.

“We have experienced significant cost increases and absorbed them, where possible, to reduce the impact on our selling partners,” Amazon said in a message sent to the media.

“In 2022, we expected a return to normalcy as Covid-19 restrictions ease around the world, but fuel and inflation have presented more challenges.”

Amazon adds 5% surcharge for rising gas prices

According to the information, it will be from April 28, when Amazon will charge an average of 24 cents more per unit that it stores and ships through its Fulfillment service.

“When we raised rates, we focused on addressing ongoing costs and making sure our rates were competitive with those charged by other service providers.”

Amazon noted. “Like many, we have experienced significant cost increases and absorbed them, where possible, to reduce the impact on our sales partners,”

Read: Many Americans expect to use credit card rewards to travel in 2022

Amazon wrote that it is unclear if these inflationary costs will rise or fall, or for how long they will persist, so instead of a permanent rate change, a fuel surcharge and inflation will be used for the first time and that it is a mechanism.

The surcharge will be applied directly to sellers, not Amazon buyers, but as is common in these cases, Amazon’s fee increases for sellers are expected to result in higher costs for consumers.

Amazon explains in its message: “Since the start of the pandemic, we have invested significantly in Amazon’s store and fulfillment operations to better support you and our customers. We’ve nearly doubled fulfillment capacity, added more than 750,000 full- and part-time positions, and our average hourly wage in the US has increased from $15 to $18. These investments enabled tremendous growth for vendors, who increased sales in our store by more than 70% during this time”

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