April 14 (Reuters) - Amazon.com Inc said on Wednesday it will impose an average 5 percent fuel and inflation surcharge on merchants using its U.S. warehousing and shipping services in response to rising costs.
Amazon's first such surcharge
Starting April 28, Amazon will charge merchants for using its Fulfillment by Amazon (FBA) service, which includes loading, packing and shipping products.
Amazon said the surcharge is not permanent and is a mechanism widely used by supply chain suppliers. “Costs have risen significantly and we try to absorb costs to minimise the impact on our sales partners. In 2022, we expect a return to normality as Covid-19 lockdowns ease around the world, but fuel and inflation have brought further challenge."
"Amazon's competitors, FedEx and UPS, have fuel surcharges," Amazon said.
Amazon also highlighted that it charges a fuel inflation fee of 24 cents per unit, which is lower than what UPS and FedEx charge as of March 21, which charge 42 cents and 49 cents, respectively.
Stacy Mitchell says Amazon is taking advantage of the moment
While Amazon blamed the surcharge on inflation and rising fuel costs, Stacy Mitchell, co-chair of the antitrust group Institute for Local Self Reliance, criticized the company's statement Wednesday, saying Amazon was taking advantage of the timing.
"Amazon continues to increase the fees it charges sellers who rely on its platform. The new fees are a way to take more money out of the pockets of independent businesses and into Amazon's coffers," Mitchell said.
Amazon's third-party marketplace is an important part of its business. Independent merchants list millions of products on third-party marketplaces. It has about 2 million sellers, and more than half of the items sold on Amazon.com come from these sellers.
