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Amazon to levy fuel and inflation surcharge on sellers

Amazon.com Inc. said Wednesday that it will add a 5% fuel and inflation surcharge on sellers using its fulfillment and delivery services, the first time in the company’s history it has imposed a fuel levy.

In a memo to sellers, the Seattle-based e-tailer (NASDAQ: AMZN) said the surcharge, which goes into effect April 28, will be levied on top of the per-unit rates charged under its Fulfillment by Amazon service. 

Amazon said in the memo that the surcharge is a better alternative for sellers than a permanent change to its fee structure. It added that, since the COVID-19 pandemic, its fulfillment and delivery rates have increased slower than those of its competitors.

Amazon has tacked on fees to offset rising costs in response to the pandemic-related shifts in its business. While there has been a return to post-pandemic normalcy, the company is facing spikes in inflation, especially in the cost of fuel.