Key insights
- Amazon is imposing a 3.5% fuel and logistics surcharge on US and Canadian sellers due to rising costs, partly driven by the Iran conflict and higher oil prices. This may negatively impact seller profitability and potentially lead to increased prices for consumers, contributing to inflationary pressures. The impact on Amazon's overall profitability is likely limited, but it signals broader cost pressures within the e-commerce and logistics sectors.
In this article
Amazon is adding a 3.5% "fuel and logistics-related surcharge" to fees it collects from third-party sellers who use its fulfillment services, as the war in Iran stretches into its fifth week, driving up oil prices.
The surcharge will take effect on April 17, for sellers in the U.S. and Canada, the company wrote in a note to sellers on Thursday that was viewed by CNBC.
"Elevated costs in fulfillment and logistics have increased the cost of operating across the industry," Amazon wrote. "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 spokesperson Ashley Vanicek said in a statement that the surcharge is "meaningfully lower" than levies applied by other major carriers.
"We remain committed to our selling partners' success and to maintaining broad selection and low prices for customers," Vanicek said in a statement.
Oil prices surged Thursday as investors weighed how long the conflict in the Middle East would block shipments of crude traveling through the Strait of Hormuz. June futures for international benchmark Brent crude rose more than 6% to $107.35 per barrel.
WATCH: You don't see a crisis yet in liquefied natural gas suppliers in Europe