April 28 is the day when the 5% fee takes effect.
Amazon is implementing a new fuel and inflation tax to counteract the growing cost of gasoline. According to a letter acquired by CNN, the 5% tax will take effect on April 28. Third-party sellers that utilise Amazon’s fulfilment services will be responsible for collecting the money.
Third-party sellers who do not use Amazon’s fulfilment services will not be impacted by the new fee. Products are stored, packed and sent to customers via Amazon’s fulfilment services. Nearly 89% of Amazon’s 2 million third-party merchants utilised Fulfillment by Amazon (FBA) services in 2021, according to a Jungle Scout analysis (PDF).
He stated, “Consumers are going to lose,” Dan Brownsher told Bloomberg. There are more than 50 customers that sell things on Amazon via his company, Channel Key, an e-commerce consulting firm in Las Vegas. “Sellers will have to hike pricing since Amazon already raised fees in January,” said Brownsher.
Amazon is the latest company to implement gasoline fees, after Uber and FedEx.
Fuel surcharges are not exclusive to Amazon. In response to rising gas prices and inflation, businesses such as Uber, FedEx, and UPS have begun collecting fuel surcharges. Most airlines are now charging passengers a fee for the additional cost of jet fuel.
When it comes to the price of inflation, Amazon says, “We’ve done our best to absorb it.” The firm claims that this is the first time it has ever charged a fee to its vendors.
According to a letter acquired by CNN, Amazon projected a return to normality in 2022 once Covid-19 limitations throughout the globe were lifted. “However, gasoline and inflation have provided further obstacles,” the company noted in the email. Inflationary expenses are expected to rise or fall in the near future, but no one knows how long they will last.
The impact of Amazon’s fuel and inflation charge on you.
Even while we haven’t figured out how this year’s Prime Day bargains would be affected by these additional taxes, it’s clear that third-party retailers are likely to pass on the costs to customers.
The annual pricing of Amazon Prime went up from $119 to $139 earlier this year. At the time, Amazon blamed the price hike on rising labour and shipping expenses, as well as the company’s expansion of Prime member features.
But there are a few things you can do to save money when shopping on Amazon.com. Prior to hitting “Buy,” be sure to check out our guide to the 12 Amazon purchasing tips every Prime member should know. Please check out our list of the top advantages available to Amazon Prime subscribers so that you can maximise your membership.