Amazon Implementing New 5% Fee For Sellers

Due to rising costs of “fuel and inflation”, third-party sellers who use Amazon will be subject to a 5% fee starting April 28th.

This surcharge comes after a country-wide rise in inflation, which Amazon had reportedly told shareholders that its labor costs would eat into the e-commerce site’s sales. The charge will apply to all product types. Those who use Fulfillment by Amazon (FBA) are already paying increased seller fees and have been since November of last year.

This fee is starting during the week when Amazon is going to report its early 2022 earnings. The cost of the fee to sellers is roughly 24 cents per unit, which is cheaper than both UPS and FedEx. Amazon is choosing to implement a surcharge rather than a permanent fee change due to the current uncertainty surrounding inflation. The costs may change over time, so Amazon is following suit to mimic what other supply chain providers have done thus far.

Currently, according to estimates, roughly 90% of Amazon’s sellers utilize it’s FBA service. It stands to reason that many of these sellers will pass the cost increase onto consumer goods, and therefor customers will bear the brunt of the pricing increases.

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