Here's How Amazon Passed On Rising Fuel Costs, Inflation To Its Sellers

Amazon.com Inc AMZN introduced a 5% surcharge to its delivery fees to shift the burden of the rising fuel costs and inflation, the Financial Times reports based on Amazon’s third-party sellers.
Amazon will add the fee to the per-unit delivery cost implying the cost to deliver a T-shirt would rise from $5.07 to $5.32, up by $0.24 per package.
The fee, effective April 28, will be applied to U.S. sellers using Amazon’s logistics network to deliver products, known as Fulfillment By Amazon.
The fee will neither be permanent nor will it be passed on to consumers directly.
The third-party seller products accounted for 56% of units sold on Amazon in the most recent quarter, FT notes.
MWPVL suggested that Amazon send 3.25 billion packages from third-party sellers to U.S. customers via Fulfillment in 2021.
Experts do not see the third-party sellers passing the incremental costs to the customers at the risk of hindering their competitiveness.
Previously, Amazon hiked the annual price of its Prime membership from $119 to $139 to offset the rise in wages and transportation costs in its logistics network.
Price Action: AMZN shares traded lower by 0.09% at $3,108 premarket on the last check Thursday.

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