Amazon Adds 5% 'Inflation' Fee to Sellers
The fee comes upon rising inflation rates and supply chain disruptions.
Inflation has hit virtually almost every industry so far this year, with a new report from the Department of Labor showing that inflation rates jumped 8.5% month over month in March, the fastest increase in 40 years.
Escalating tensions between Russia and Ukraine coupled with labor shortages and supply chain issues that have resided as a result of the pandemic have caused companies to compensate for lost revenue by adding fees or increasing prices of goods.
The new fee is set to roll out on April 28 and will equate to an additional $0.24 per unit of each good.
"Like many, we have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners," an email shared with Amazon third-party sellers that was obtained by FOX Business stated. "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 did not publicly comment on the new fees.
The e-commerce giant has been increasing fees over the past year amid the pandemic and competing costs, especially on services for Prime members.
Earlier this month, Amazon increased Amazon Music Unlimited prices for Prime members by $1, after a February price hike that left Prime members looking at an annual increase from $119 to $139, with monthly subscriptions raising from $12.99 to $14.99.
The price hikes were the first of their kind since 2018.
Amazon was down over 10% as of Thursday afternoon.
Entrepreneur Editors' Picks
Formerly Enslaved Black Man Nearest Green Taught Jack Daniel Everything He Knew About Whiskey. Today, the Founder of Uncle Nearest Premium Whiskey Celebrates His Legacy.
Leadership Lessons From the Exclusive Creativity School That 'Packs 5 Years Learning Into 5 Days'
3 Expert-Backed Strategies for Staying Calm in Times of Confrontation
The CEO of Wayfair Has Helped Revolutionize Digital Shopping for 20 Years. Here's How He Handles Rocky Economic Conditions.
This Founder Went to Prison When He Was 15 Years Old. That's Where He Came Up With the Idea for a Company Now Backed By John Legend.
3 Signs You're Letting Pride Get in the Way of Being Successful
Chip and Joanna Gaines and Shonda Rhimes Found Incredible Success By Using This One Entrepreneurial Strategy. Here's How You Can Too.