Amazon to hit sellers with surcharge due to higher fuel, logistics costs

FILE: The Amazon logo is seen on the exterior wall of the Amazon OXR1 fulfillment center in Oxnard, Calif. (AP Photo/Damian Dovarganes)

Amazon plans to impose a 3.5 per cent surcharge on sellers in Canada and the U.S. due to “elevated costs in fuel and logistics,” a spokesperson confirmed in an emailed statement to CTV News.

“Elevated costs in fuel and logistics have increased the cost of operating across the industry,” the statement read.

“We have absorbed these increases so far, but similar to other major carriers, when costs remain elevated, we implement temporary surcharges to partially recover these costs.”

The statement claims that Amazon’s “fuel and logistics-related surcharge to fulfillment fees,” a per-unit fee charged to sellers who use the company’s Fulfillment by Amazon (FBA) service, is “meaningfully lower” than surcharges being tacked on by other major carriers.

Other shippers that operate in North America, such as FedEx and UPS, already apply fuel surcharges to sellers that are adjusted weekly, based on the average retail price of fuels like diesel or kerosene-type jet fuel.

Amazon’s announcement comes amid soaring oil prices globally due to the war in Iran, which has impacted shipping, logistics and the cost of petroleum-based products.

The surcharge will be calculated based on a seller’s fulfillment fees, not on the sale price of the items being shipped, according to a message from Amazon posted to the company’s “seller central” message board.

“On average, this equates to US$0.17 per unit for U.S. FBA, though this will vary based on your item’s size and dimensions,” the message said.

The surcharge is set to come into effect on April 17, and will remain in place until further notice, according to the statement.