Amazon Levies 3.5 Percent Fuel and Logistics Surcharge on Third-Party Sellers

Citing high fuel costs, online retail giant Amazon on April 2 announced it would levy a 3.5 percent fuel and logistics surcharge on fulfillment fees in the United States and Canada, beginning May 2.

Amazon said it has absorbed rising transportation-related cost increases, but will now pass on a temporary surcharge to fulfillment fees across its Fulfillment by Amazon (FBA) service, as well as to its Remote Fulfillment with FBA deliveries from the United States into Canada, Mexico, and Brazil.

“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 in the announcement.

The surcharge affects consumer purchases made with Amazon’s Buy with Prime service, as well as with Multi-Channel Fulfillment (MCF) in the United Sstates and Canada. Amazon’s MCF service allows sellers to use the online retailer to fulfill orders placed with third-party sales platforms, such as Walmart, Shopify, or TikTok Shop. Amazon’s FBA allows sellers to store their goods at Amazon fulfillment centers and have them packed and shipped through Prime delivery when orders are placed.

Amazon said the temporary surcharge will be levied against e-sellers’ fulfillment fees and not on the sales price of their goods. On average, the surcharge equates to $0.17 per unit, Amazon said, though costs can vary depending on the size and dimension of goods being fulfilled through FBA.

The announcement by Amazon follows weeks of escalating fuel costs as the war with Iran, which began on Feb. 28, continues. The national average price for regular gasoline was $4.09 per gallon on April 3, nearly $1 higher than a month ago, AAA reported.

Meanwhile, the average price for diesel fuel was $5.53 per gallon, approaching its record high of $5.81 per gallon recorded in June 2022 and more than $1.60 higher than a month ago.

The U.S. Postal Service (USPS) on March 25 announced it was initiating a temporary price increase to better align with rising transportation costs. The 8 percent price hike on base postal prices goes into effect on April 26 and will remain in effect through Jan. 17, 2027.

“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” USPS wrote in a statement.

“The time-limited price change is consistent with industry practices and will support the Postal Service’s ability to continue achieving its public service mission—providing a nationwide, integrated network for the delivery of mail and packages at least six days a week.”

UPS and FedEx both announced in March a variety of fuel-related surcharges for delivery services, as well as for goods coming into the United States.