Amazon set to add 3.5% surcharge for US, Canadian sellers due to elevated fuel costs

As the ongoing war in Iran continues to drive up oil prices, Amazon has added a new 3.5% fee to third-party sellers using its fulfillment services. 

CNBC reported that the company announced the update in a note to sellers in the United States and Canada on Thursday, sharing that the fee will take effect on April 17. 

Oil prices also surged Thursday as investors weighed how long the conflict in the Middle East would block crude oil shipments through the Strait of Hormuz. 

Amazon cited "elevated costs" related to fuel and shipping as the reason for this charge.

In communication to sellers, Amazon explained that it had previously absorbed these costs, similar to other major carriers that implemented surcharges earlier this year. 

However, to mitigate risks associated with rising expenses, the company indicated that these fees are necessary to recover part of the cost increases it has been facing.

With fuel prices on the rise, the expenses incurred by major carriers are being passed down to the platform's sellers, which may in turn affect their customers, who are already facing financial challenges.

As fuel and energy prices rise across the U.S., the International Energy Agency has even advised people to reduce their fuel use, both to lower their own bills and to help prices stabilize overall. 

The U.S. Postal Service, UPS, and FedEx have also imposed higher fuel surcharges since the start of the Iran war.

Amazon representative Ashley Vanicek said to CNBC that the new surcharge is "meaningfully lower" than those imposed by other carriers. 

The fee averages an additional 17 cents per unit for Fulfillment by Amazon shipments, though it may vary, according to the company. Amazon hosts about 2 million sellers, and the majority of third-party sellers use FBA as their fulfillment method for products sold on Amazon, according to CNBC. 

"We remain committed to our selling partners' success and to maintaining broad selection and low prices for customers," Vanicek said in a statement, per the publication.

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