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Amazon's New Surcharge: Sellers Feel the Pinch

About this episode

Amazon introduces a new 3.5% surcharge on shipping services for FBA customers, effective April 17th, due to rising oil prices and logistics costs. This fee is a direct pass-through on higher shipping expenses, impacting independent sellers who already pay commissions, storage, and delivery fees. Amazon claims to have absorbed the increases thus far but now requires temporary surcharges, similar to other major carriers. The charge applies only to the shipping fee, not the items sale price, and is lower than hikes from rivals like the US Postal Service. As costs remain high, expect more adjustments in e-commerce, keeping pressure on sellers while buyers avoid the direct hit for now.

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Amazon's New Surcharge: Sellers Feel the Pinch

Canada News Today | 2 Min News | The Daily News Now!

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Full transcript

Canada News Today | 2 Min News | The Daily News Now!Amazon's New Surcharge: Sellers Feel the Pinch. Machine-transcribed; use the interactive transcript above to jump the player to any line.

It's April 2, I'm Cory with the story, and this is Canada News today. Your AI-powered local news. Amazon's hitting sellers with a new 3.5% fuel and logistics surcharge on its shipping services starting later this month. This comes as oil prices climb from the war in Iran, pushing up costs across the board. It's aimed at independent sellers using fulfillment by Amazon and the U.S. and Canada. The fee kicks in April 17 for those FBA customers, then rolls out May 2 for items Amazon shifts to merchants selling on their own sites, or other retailers. Basically, it's a direct pass through on higher shipping expenses. Sellers are feeling the pinch since over 60% of Amazon products come from these independents, who already pay commissions, storage, and delivery fees. Instead of raising shopper prices, Amazon shifting the burden to its merchant partners through this marketplace setup. Amazon says they've soaked up the increases so far, but now need temporary surcharges

similar to other big carriers. The charge applies only to the shipping fee itself, not the item sale price, and is lower than hikes for rivals like the U.S. Postal Services. 8% jump on some packages. With costs staying high, expect more of these adjustments rippling through e-commerce, keeping the pressure on sellers while buyers dodge the direct.

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