Business

Amazon Adds 5% ‘Inflation’ Fee to Sellers


Inflation has hit nearly nearly each trade to date this yr, with a new report from the Department of Labor displaying that inflation charges jumped 8.5% month over month in March, the quickest improve in 40 years.

Escalating tensions between Russia and Ukraine coupled with labor shortages and provide chain points which have resided because of the pandemic have triggered corporations to compensate for misplaced income by including charges or rising costs of products.

Amazon is the newest to take action as the corporate introduced on Thursday that it could be implementing a 5% charge for “fuel and inflation” to third-party sellers on the retail website.

The new charge is ready to roll out on April 28 and can equate to an extra $0.24 per unit of every good.

Related: Amazon Increases Prices for Prime Members Once Again. Is It Still Worth It?

“Like many, we have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners,” an electronic mail shared with Amazon third-party sellers that was obtained by FOX Business said. “When we did increase fees, we were focused on addressing permanent costs and ensuring our fees were competitive with those charged by other service providers.”

Amazon didn’t publicly touch upon the brand new charges.

The e-commerce big has been rising charges over the previous yr amid the pandemic and competing prices, particularly on providers for Prime members.

Earlier this month, Amazon elevated Amazon Music Unlimited costs for Prime members by $1, after a February worth hike that left Prime members an annual improve from $119 to $139, with month-to-month subscriptions elevating from $12.99 to $14.99.

The worth hikes had been the primary of their type since 2018.

Amazon was down over 10% as of Thursday afternoon.



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