Amazon plans to increase FBA shipping fees over the holidays

International Business News  –  According to the latest OECD inflation forecast for 2022, inflation in Germany, the UK and the US has reached the highest level in 40 years due to the continued deterioration of supply chain problems caused by the epidemic and the conflict between Russia and Ukraine.

Inflation in Turkey is as high as 72%! Argentina has the second-highest inflation rate at 60.1%, and Lithuania is third, with inflation also set to hit 15.6%.

In response to soaring inflation, Amazon plans to increase FBA shipping fees during the holiday season! Pass the cost of inflation on to millions of Amazon sellers around the world.

Yesterday, Amazon mentioned in a seller email that from October 15th to January 14th, third-party sellers using Fulfillment by Amazon (FBA) must pay an additional 35 cents per item sold in the United States or Canada .

For merchants using FBA, Amazon is responsible for the selection, packaging and distribution of the whole process of product sales

Vacation fees are fees that are excluded from existing FBA services, and these fees vary by item size, category, and weight.

Amazon said it would be implementing additional holiday surcharges for the first time as “costs have risen to new heights,” making it difficult for Amazon to bear the costs associated with the peak shopping season in the second half of the year.

“Our selling partners are very important to us, and this was a very difficult decision,” Amazon said in an email.

Amazon’s marketplace for third-party sellers is already at the heart of its main business (e-commerce) and currently accounts for the average online retail sales.

Due to Amazon’s global influence and huge customer base, millions of retail sellers around the world have started online retailing with Amazon, and many retail sellers are overly dependent on Amazon.

In the second quarter of this year, Amazon’s third-party seller services revenue rose 13% year over year to $27.4 billion, which includes commissions, logistics, shipping and other fees charged by Amazon. Over the same period, Amazon’s total e-commerce revenue fell 4%.

Amazon’s seller fees are already rising this year due to rising costs due to inflation, supply chain issues and the war in Ukraine. In recent years, the surge in online consumer demand caused by the epidemic has forced Amazon to recruit more warehouse employees, so its costs have also increased significantly.

In April of this year, Amazon CEO Andy Yassi said in an interview with foreign media: “In a way, you can’t absorb all these costs all the time and run a profit-oriented business at the same time.”

This also shows that Amazon is actually planning to raise prices early on.