Amazon to slap 3.5% fuel surcharge on third-party sellers in US, Canada

Amazon is slapping a 3.5 per cent fuel and logistics surcharge on third-party sellers using its platform starting later this month amid a spike in fuel prices since the war in Iran started.

The temporary charge is effective April 17 for many of the sellers who use Amazon's fulfillment services, the online behemoth confirmed to The Associated Press in an email Thursday.

"Elevated costs in fuel and logistics have increased the cost of operating across the industry," Amazon said in the emailed statement.

The Seattle-based company said it has absorbed these increases so far but similar to other major carriers, when costs remain elevated, it implements temporary surcharges to partially recover these costs. It noted the charge is "meaningfully" lower than surcharges applied by other major carriers.

 

"We remain committed to our selling partners' success and to maintaining broad selection and low prices for customers," Amazon added.

Amazon's fuel and logistics-related surcharge will apply to US and Canadian sellers using its Fulfillment by Amazon option. Starting May 2, the surcharge will take effect with sellers using the Buy with Prime and Multi-Channel Fulfillment options.

Amazon joins a growing list of carriers imposing surcharges to recoup rising energy costs as the Iran war drags on.

United Parcel Service and FedEx have increased their fuel surcharges. The United States Postal Service announced last week it was imposing an 8 per cent fuel surcharge that would apply to packages to be shipped starting April 26. The surcharge would remain in place until January 17 2027, it said.