Amazon Hits US & EU Sellers With Fuel And Inflation Surcharge

Starting April 28, US sellers who use Fulfillment by Amazon (FBA) will see a (hopefully) temporary 5% fuel and inflation surcharge amidst surging prices. 😫 EU & UK sellers will also get hit with a similar 4.3% fee increase beginning May 12, 2022.

The additional fee will apply to apparel, non-apparel, dangerous goods, and Small & Light items, squeezing sellers and further eating into the profits. 🤦‍♀️

Amazon mentioned that the current FBA costs, inclusive of the 5% fuel and inflation surcharge, remain significantly less than alternatives. The surcharge is also subject to change, which could mean lower fees in the future. 🤞

However, some sellers believe that even if prices go down, the surcharge will not go away, and we tend to agree with them. History tells us that a tax (or surcharge), once implemented, can be difficult to revert.

So, Amazon should just call it for what it is: a price hike. 🤔

This is not the first Amazon gut-punch of 2022. The new dimensional weight factor saw fees increase overnight for many sellers, some as much as 94% or more! Couple that with this 5% fuel increase and sellers are really getting hit hard.

In addition, even if you’re not affected by dimensional weight fees, when you factor in the current FBA fulfillment fee, which is roughly 5.2% higher than last year’s rate, and other expenses, the overall cost increase per unit could be potentially huge for many sellers, specifically those with already-slim margins.

Sellers will either have to remove unprofitable products from Amazon or pass the cost increases to their customers to compensate. It would also be wise to run some numbers using our Master Carton Calculator Tool to see if restructuring your shipping practices can increase your profit margins.

Read the news announcement for more information.

Related: New Dimensional Weight Fees Placing Further Strain on Profit Margins