Amazon's goods and services will get more expensive this year. On February 18, 2022, the company raised annual membership fees for new members by $20, up from $119 to $139. The monthly customer charge went up by $2 from $12.99 to $14.99. (source)
Now, new costs are getting passed on to suppliers. Amazon plans to add a fuel and inflation surcharge of about 5% to existing fees. These fees apply to U.S. third-party sellers who use the company's fulfillment services. This cost fee is "subject to change" and goes into effect in about two weeks. (source)
The Amazon notice said, "The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and small and light items. The surcharge will apply to all units shipped from fulfillment centers starting April 28."
With inflation soaring, the e-commerce giant is passing extra costs onto sellers. The company already collects fees from Fulfillment by Amazon (FBA) sellers. These merchants pay to use Amazon's warehouses. Plus, use the firm's distribution services. About 89% of Amazon's two million-plus merchants used FBA in 2021. (source)
"In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased. But fuel and inflation have presented further challenges. It is still unclear if these inflationary costs will go up or down, or for how long they will persist. So rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time—a mechanism broadly used across supply chain providers."
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*Disclaimer: This article is for general knowledge and informational purposes only.*