Amazon Introduces 5% Fuel And Inflation Surcharge For Merchants

Matt Lillywhite

Amazon recently announced that it will charge merchants a 5% fuel and inflation surcharge. The new surcharge will take effect on April 28th, according to the e-commerce juggernaut, and will be implemented as a result of recent rises in inflation.

"In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges," the company said in a memo published by NPR. "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."

Businesses across the United States are struggling to keep up with inflation. But unfortunately, that means companies are often forced to make decisions that raise the price of goods and services. Uber recently added temporary fuel surcharges to rides. In addition, as oil prices skyrocket, some airlines are raising their ticket prices. For example, Emirates, Japan Airlines, and AirAsia are among the major airlines that have recently introduced surcharges to cover the rising cost of jet fuel.

The announcement from Amazon comes as inflation in the United States reaches a 40-year high. According to BBC News, "Consumer prices surged by 8.5% - the largest annual gain since December 1981 - following a double-digit rise in energy prices."

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Matt Lillywhite covers politics, the economy, and kitchen-table issues that matter.


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