• ITVI.USA
    12,475.330
    -74.540
    -0.6%
  • OTLT.USA
    2.863
    0.005
    0.2%
  • OTRI.USA
    8.610
    0.210
    2.5%
  • OTVI.USA
    12,525.630
    -80.810
    -0.6%
  • TSTOPVRPM.ATLPHL
    2.780
    -0.050
    -1.8%
  • TSTOPVRPM.CHIATL
    2.390
    -0.270
    -10.2%
  • TSTOPVRPM.DALLAX
    1.800
    -0.040
    -2.2%
  • TSTOPVRPM.LAXDAL
    2.160
    -0.030
    -1.4%
  • TSTOPVRPM.PHLCHI
    1.990
    -0.020
    -1%
  • TSTOPVRPM.LAXSEA
    2.880
    -0.060
    -2%
  • WAIT.USA
    125.000
    6.000
    5%
  • ITVI.USA
    12,475.330
    -74.540
    -0.6%
  • OTLT.USA
    2.863
    0.005
    0.2%
  • OTRI.USA
    8.610
    0.210
    2.5%
  • OTVI.USA
    12,525.630
    -80.810
    -0.6%
  • TSTOPVRPM.ATLPHL
    2.780
    -0.050
    -1.8%
  • TSTOPVRPM.CHIATL
    2.390
    -0.270
    -10.2%
  • TSTOPVRPM.DALLAX
    1.800
    -0.040
    -2.2%
  • TSTOPVRPM.LAXDAL
    2.160
    -0.030
    -1.4%
  • TSTOPVRPM.PHLCHI
    1.990
    -0.020
    -1%
  • TSTOPVRPM.LAXSEA
    2.880
    -0.060
    -2%
  • WAIT.USA
    125.000
    6.000
    5%
BusinessE-commerce & FulfillmentFuelLast-mile deliveryModern ShipperNewsParcelTop StoriesWarehouse

Amazon to levy fuel and inflation surcharge on sellers

Company to tack on a 5% fee for FBA sellers at end of month

Amazon.com Inc. said Wednesday that it will add a 5% fuel and inflation surcharge on sellers using its fulfillment and delivery services, the first time in the company’s history it has imposed a fuel levy.

In a memo to sellers, the Seattle-based e-tailer (NASDAQ: AMZN) said the surcharge, which goes into effect April 28, will be levied on top of the per-unit rates charged under its Fulfillment by Amazon service. 

Amazon said in the memo that the surcharge is a better alternative for sellers than a permanent change to its fee structure. It added that, since the COVID-19 pandemic, its fulfillment and delivery rates have increased slower than those of its competitors.

Amazon has tacked on fees to offset rising costs in response to the pandemic-related shifts in its business. While there has been a return to post-pandemic normalcy, the company is facing spikes in inflation, especially in the cost of fuel.

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The FREIGHTWAVES TOP 500 For-Hire Carriers list includes UPS (No. 2).

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.