Amazon Adds 5% 'Inflation' Fee to Sellers The fee comes upon rising inflation rates and supply chain disruptions.

By Emily Rella

entrepreneur daily

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.

Amazon is the latest to do so as the company announced on Thursday that it would be implementing a 5% fee for "fuel and inflation" to third-party sellers on the retail site.

The new fee is set to roll out on April 28 and will equate to an additional $0.24 per unit of each 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 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.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

Red Lobster Changed Its 'Endless Shrimp' Promotion After Losing $11 Million in One Quarter — Now It's Hauling Out Another All-You-Can-Eat Deal

The restaurant chain reported a record $12.5 million operating loss in the fourth quarter of 2023.


6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Business Solutions

The Ultimate AI ChatGPT and Python Programming Bundle Is $30 This Week Only

Expand your knowledge and bring more work in-house to improve your business.


How to Make PR Campaigns Customer-Focused Instead of Company-Focused

The 21st century has seen a shift away from the company that's "selling" and toward the consumer that's "buying." Business practices, like PR campaigns, have had to transition in kind to stay relevant in the current culture and to resonate with the public.


SMART Goals May Be Holding You Back — Try This Effective Goal-Setting Technique Instead

Everyone suggests SMART goals, but this framework is flawed. Learn why and how to create goals properly — ones that you can actually achieve.

Business News

2024 Could Be the Year that Makes or Breaks a Lot of Small Businesses, According to a New Report

About a third of small business owners indicated on a Slack survey that they aren't sure if their businesses will survive the year.