US Amazon sellers set to increase prices following 5% fuel and inflation surcharge

midian182

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Staff member
A hot potato: Amazon is slapping US sellers who use its fulfillment services with a 5% fuel and inflation fee, a move that has seen some third parties confirm they will have to raise the prices of their goods. The surcharge is set to come into effect on April 28 and applies to sellers using the Fulfillment by Amazon service that lets them store, pack, and ship products.

The 5% addition comes only a few months after Amazon merchants had to deal with another 5.2% cost-related increase that took effect in January, writes Bloomberg.

The retail giant said in an email to sellers that it has made investments to meet increasing demand since the start of the pandemic, including doubling capacity, adding 750,000 employees, and raising the average Amazon warehouse employee wage to $18 from $15. The message also says that Amazon has absorbed the cost increases wherever possible, but the additional operating costs led to it increasing its fulfillment fees in January.

Amazon told CNBC that while it expects a return to normalcy in 2022 as Covid-19 restrictions around the world start to ease, fuel and inflation are presenting new challenges. Inflation hit a four-decade high of 8.5% in March, the result of increasing energy and food costs, supply constraints, and strong consumer demand, while Russia's invasions of Ukraine keeps pushing up gas prices.

Amazon said that rather than permanently increasing (again) the amount it charges sellers for using its warehouses and shipping channels, it imposed a surcharge as it's "unclear if these inflationary costs will go up or down, or for how long they will persist."

Around 89 percent of Amazon's two million+ third-party sellers use Fulfillment by Amazon, reports Jungle Scout research. "We absolutely will need to raise prices," Molson Hart, whose Viahart Toy company sells goods on Amazon, told Bloomberg. "Some sellers cannot because customers are not accepting the new higher prices."

Amazon noted that its surcharge of 24 cents per unit is lower than the fuel surcharge imposed by UPS (42 cents) and FedEx (49 cents).

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Just like every other place out there that increase prices due to high fuel costs....

When the cost of fuel goes down, will they remove this extra cost or just keep milking the consumer?

I know....I know, that's a rhetorical question. Everyone knows that if gas prices drop no one will remove the fuel surcharge they put in place. They'll just leave it there and make more profit.

On the flip side, we all know that gas prices are going to stay artificially inflated. Oil has been, on average, $10-12 lower than it was 2 weeks ago, but gas prices haven't dropped a single penny. Still at $4 a gallon around me. The whole system if fuking broke and will continue to be broke, regardless of what is done about it.

If people think moving to EV will solve the money gouging issue we have with oil/gas, think again. If oil/gas demand falls off and EV take over and become the norm, then electricity will jump and those in control of the oil/gas industry and will take over the electricity industry. They will just move where the money goes once they can no longer manipulate their current avenue of corruption.
 
Just like every other place out there that increase prices due to high fuel costs....

When the cost of fuel goes down, will they remove this extra cost or just keep milking the consumer?

I know....I know, that's a rhetorical question. Everyone knows that if gas prices drop no one will remove the fuel surcharge they put in place. They'll just leave it there and make more profit.

On the flip side, we all know that gas prices are going to stay artificially inflated. Oil has been, on average, $10-12 lower than it was 2 weeks ago, but gas prices haven't dropped a single penny. Still at $4 a gallon around me. The whole system if fuking broke and will continue to be broke, regardless of what is done about it.

If people think moving to EV will solve the money gouging issue we have with oil/gas, think again. If oil/gas demand falls off and EV take over and become the norm, then electricity will jump and those in control of the oil/gas industry and will take over the electricity industry. They will just move where the money goes once they can no longer manipulate their current avenue of corruption.
You're right, we already see it in energy prices. Luckily I'm in an area with extremely cheap energy (primarily wind based) but the repeated removal of nuclear plants, continual building of gas plants, and poorly timed transition to inconsistent renewables leading to blackouts...the energy industry is a flaming disaster and nearly every party involved is to blame besides the consumers.
 
Oil has been, on average, $10-12 lower than it was 2 weeks ago, but gas prices haven't dropped a single penny. Still at $4 a gallon around me. The whole system if fuking broke and will continue to be broke, regardless of what is done about it.
I remember years ago (04-06) some dipshit on a news program tried to explain why prices go up so fast, but down so slow. It was the most ridiculous drivel I have heard in a long time. I'm trying to find it.
If oil/gas demand falls off and EV take over and become the norm, then electricity will jump
So far, the US department of energy still says that increased demand will not affect prices. At least early on I can see why since the higher usage will mean higher bills so they will be cashing in even with the status quo.
Just like every other place out there that increase prices due to high fuel costs
If we want a (not so) bright side, I have contacts in Europe and South Africa and their gasoline prices are up 65%. Gas in South Africa is almost $8 a gallon.
 
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@eforce
@RudyBob

Then feel free to show your work.
I know for a fact the election was not stolen and what actually are the leading factors for the inflation. And I can show my work.

For example. All through the world, inflation is hammering the people.
And their prices have gone up similar to ours (+\-).

So what has American politics done to cause their price increases?
And how about the rest of Europe?

And I mean factually. Not your usual made up stuff.

Here is one of those facts, you guys may also avoid it as the truth.

OOPS!! What about Germany?

GREECE! How can you do this to the trumpian right?

Lordy, Lordy how has Biden done it!?
He truly does work miracles!!

Righties let me know if you want more. There are plenty.

Oh what the hell. A freebie just for you all!

Spain! What are you doing to the trumpers, you know how they are?

And yet Biden is responsible for Amazons surcharge?
 
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I recently shopped for a chair to replace the one I use and is falling appart.
Last time I was browsing the best looking ones were at 200 300.
Now those cost past 300.
Everyhting is getting expensive.
Poorest will take the biggest hit.
P.S., can someone check the history book and make a plan for our country based on experience before this crysis?
 
@eforce
@RudyBob

Then feel free to show your work.
I know for a fact the election was not stolen and what actually are the leading factors for the inflation. And I can show my work.

For example. All through the world, inflation is hammering the people.
And their prices have gone up similar to ours (+\-).

So what has American politics done to cause their price increases?
And how about the rest of Europe?

And I mean factually. Not your usual made up stuff.

Here is one of those facts, you guys may also avoid it as the truth.

OOPS!! What about Germany?

GREECE! How can you do this to the trumpian right?

Lordy, Lordy how has Biden done it!?
He truly does work miracles!!

Righties let me know if you want more. There are plenty.

Oh what the hell. A freebie just for you all!

Spain! What are you doing to the trumpers, you know how they are?

And yet Biden is responsible for Amazons surcharge?
Here's some facts from someone who works in the oil industry (me). Since Biden took over he has not only killed two major pipelines in the US but he's also killed any new drilling on Federal lands. Two of our would be biggest oil fields here in Alaska have been shut down due to Biden's policies resulting in thousands of jobs going down the toilet.
 
Here's some facts from someone who works in the oil industry (me). Since Biden took over he has not only killed two major pipelines in the US but he's also killed any new drilling on Federal lands. Two of our would be biggest oil fields here in Alaska have been shut down due to Biden's policies resulting in thousands of jobs going down the toilet.
I'm admittedly not up on some of this. Why is not drilling on Federal lands such a big deal? We have way more oil reserves than we could have dreamed of only 20 years ago, so what is the problem leaving Federal land untouched? And isn't most of that park land?
 
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See everyone, this is what so many people ask for. AlaskaGuy made good points.
Factual and truthful. That's all anyone wants.

I'm admittedly not up on some of this. Why is not drilling on Federal lands such a big deal? We have way more oil reserves than we could have dreamed of only 20 years ago, so what is the problem leaving Federal land untouched? And isn't most of that park land?
Here's why it's a big deal, especially for those of us who live west of the Missouri River. Now if the Feds did this to the eastern states it would be fair play. btw 64% of Alaska is Federal land which is robbery imo.

450px-Map_of_all_U.S._Federal_Land.jpg
 
Here's some facts from someone who works in the oil industry (me). Since Biden took over he has not only killed two major pipelines in the US but he's also killed any new drilling on Federal lands. Two of our would be biggest oil fields here in Alaska have been shut down due to Biden's policies resulting in thousands of jobs going down the toilet.

I understand Alaskans hate federal interference - but one good think is you are part of NATO - otherwise you Nazis would be on Putins agenda to claim Russian land back - Anchorage would be flattened and anything that moves rape or stolen . Imperialistic Russians still think it belongs to them - lots of articles coming out now - of how many countries they should claim back
We actually don't have a peak oil problem anymore - because we should transition to new technologies - use the hydrocarbons for plastic and heavy machinery etc .
A lot of this is in Wildlife Reserves - but we are a rich country we need to exploit it fully - make the poor countries protect their forests and fishing - or should South America, Congo , Indonesia be allow to rape all their resources .
I've seen Alaskans whining about not being able to kill any tree they choose - those slow growing ones - not like Pinus Radiata that grow in 30 years in NZ and really need additional processing to improve it . Those trees are only viable by Federal Road subsidies - to build the exploiters free roads .
You know and I know Alaskan future wealth is tie to it's pristine nature - the pay back is many times the exploiters payback.
But hey the free Oil check every year is alluring .
What do you want for your great grandchildren - or you don't care?
I have seen that gold show on TV - think their is a Canadian one and Alaskan one - you never see inspectors - or them checking water use , or pulling nature back together and replanting trees to hold tailings - maybe it happens - but they think it's boring TV - maybe you can advise me .
Here in NZ we wanted to give up our oil and gas rights to the Southern Ocean and Antarctica over 70 years ago ( maybe a bit less )- Took USA ages to sign the Treaty for protection of Antarctica - many decades later - Some weirdo GQP in Utah wanted to exploit the SW of Utah - I've been there - it's one big National Park - Bryce, Zion, Monument , Arches, Canyonlands etc ,- It's a Superstar as a world attraction.
One the other hand Australia can't pull coal out of the ground fast enough .

In The USA you need cross party agreement - not Trumps lets grab Canadian Oil Shale - low grade toxic junk and pipe it willynilly to Galveston - with no Indigenous or environmental oversights - let the polluters self report , and let the tax payer clean up the spills and damage - to the lets take nothing side . Environmental protections can bring more jobs - not just young fit men broken in the grind for profits
 
@eforce
@RudyBob

Then feel free to show your work.
I know for a fact the election was not stolen and what actually are the leading factors for the inflation. And I can show my work.

For example. All through the world, inflation is hammering the people.
And their prices have gone up similar to ours (+\-).

So what has American politics done to cause their price increases?
And how about the rest of Europe?

And I mean factually. Not your usual made up stuff.

Here is one of those facts, you guys may also avoid it as the truth.

OOPS!! What about Germany?

GREECE! How can you do this to the trumpian right?

Lordy, Lordy how has Biden done it!?
He truly does work miracles!!

Righties let me know if you want more. There are plenty.

Oh what the hell. A freebie just for you all!

Spain! What are you doing to the trumpers, you know how they are?

And yet Biden is responsible for Amazons surcharge?
USD is the world reserve currency.
 
@eforce
@RudyBob

Then feel free to show your work.
I know for a fact the election was not stolen and what actually are the leading factors for the inflation. And I can show my work.

For example. All through the world, inflation is hammering the people.
And their prices have gone up similar to ours (+\-).

So what has American politics done to cause their price increases?
And how about the rest of Europe?

And I mean factually. Not your usual made up stuff.

Here is one of those facts, you guys may also avoid it as the truth.

OOPS!! What about Germany?

GREECE! How can you do this to the trumpian right?

Lordy, Lordy how has Biden done it!?
He truly does work miracles!!

Righties let me know if you want more. There are plenty.

Oh what the hell. A freebie just for you all!

Spain! What are you doing to the trumpers, you know how they are?

And yet Biden is responsible for Amazons surcharge?
Glad you are one of the Happy Guys. Good on ya Cobber
 
I understand Alaskans hate federal interference - but one good think is you are part of NATO - otherwise you Nazis would be on Putins agenda to claim Russian land back - Anchorage would be flattened and anything that moves rape or stolen . Imperialistic Russians still think it belongs to them - lots of articles coming out now - of how many countries they should claim back
We actually don't have a peak oil problem anymore - because we should transition to new technologies - use the hydrocarbons for plastic and heavy machinery etc .
A lot of this is in Wildlife Reserves - but we are a rich country we need to exploit it fully - make the poor countries protect their forests and fishing - or should South America, Congo , Indonesia be allow to rape all their resources .
I've seen Alaskans whining about not being able to kill any tree they choose - those slow growing ones - not like Pinus Radiata that grow in 30 years in NZ and really need additional processing to improve it . Those trees are only viable by Federal Road subsidies - to build the exploiters free roads .
You know and I know Alaskan future wealth is tie to it's pristine nature - the pay back is many times the exploiters payback.
But hey the free Oil check every year is alluring .
What do you want for your great grandchildren - or you don't care?
I have seen that gold show on TV - think their is a Canadian one and Alaskan one - you never see inspectors - or them checking water use , or pulling nature back together and replanting trees to hold tailings - maybe it happens - but they think it's boring TV - maybe you can advise me .
Here in NZ we wanted to give up our oil and gas rights to the Southern Ocean and Antarctica over 70 years ago ( maybe a bit less )- Took USA ages to sign the Treaty for protection of Antarctica - many decades later - Some weirdo GQP in Utah wanted to exploit the SW of Utah - I've been there - it's one big National Park - Bryce, Zion, Monument , Arches, Canyonlands etc ,- It's a Superstar as a world attraction.
One the other hand Australia can't pull coal out of the ground fast enough .

In The USA you need cross party agreement - not Trumps lets grab Canadian Oil Shale - low grade toxic junk and pipe it willynilly to Galveston - with no Indigenous or environmental oversights - let the polluters self report , and let the tax payer clean up the spills and damage - to the lets take nothing side . Environmental protections can bring more jobs - not just young fit men broken in the grind for profits
Alaskans = Nazi's eh. That's a new one on me. As far as what NZ chooses to do with their resources ... nobody cares seeing how anything NZ does means zero in the real world scheme of things. NZ is nothing more than two islands located in the middle of nowhere that depends on others to protect their sovereign status.
 
USD is the world reserve currency.
Glad you are one of the Happy Guys. Good on ya Cobber
Wow. Looks like the right sicked their best on me.
Couldn't you have just put up a picture of a dog? Would have defended your
position better.

But neither your "answers" nor the dog pic would have answered me.
1. Proof of stolen election
2. How did Biden cause record US inflation?
3. How did Biden cause Europe's record inflation?
4. How is Biden tied to the Amazon surcharge?

But I might as well help a little
Meet Roxy:

Cute-White-German-Shepherd-Puppy-Photo.jpg
 
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