Amazon will add a 3.5% fuel and logistics-related surcharge to fulfillment fees it charges third-party merchants, as the war in the Middle East, which began with US and Israeli strikes against Iran at the end of February, continues to drive up fuel costs.
The fee will be applied to third-party sellers across Fulfillment by Amazon in the US and Canada beginning April 17, Amazon said in a note to sellers on Thursday.
"Elevated costs in fulfillment and logistics have increased the cost of operating across the industry," Amazon wrote in its announcement. "We have absorbed these increased costs so far. However, similar to other major carriers, when costs remain elevated, we implement temporary surcharges on our fulfillment fees to recover a portion of the actual cost increases we are experiencing."
Amazon said the new surcharge is "meaningfully lower" than what is charged by other major carriers. Its surcharge will average about 17 cents per unit in the US, but the cost will vary based on the item's size, Amazon said.
Amazon's announcement comes amid surging gas prices across much of the globe as the war escalates. The national average price for a gallon of gas exceeded $4 per gallon at the end of March for the first time since August 2022, an increase of more than $1 per gallon in one month.
Amazon's new fee follows a similar surcharge proposed last month by the US Postal Service. The USPS said it will implement a temporary 8% surcharge beginning in April "to better align its costs of transportation with the market." The proposed increase, which requires the approval of the Postal Regulatory Commission, will affect Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select.
Shipping competitors, such as FedEx and United Parcel Service, have had fuel surcharges in place for years. Due to the ongoing oil crisis and rise in gas prices, they have increased these fees in recent weeks.