Amazon surcharge on third-party sellers may affect customers

Rush Hour

Amazon will now add a 5 percent fuel and inflation surcharge to third-party U.S. sellers who use their fulfillment services.

Maxim Kornilov, who owns Organo Republic, a Florida-based e-commerce seed dealer, has been selling products on Amazon since 2016.

His company will be affected by the new fee that goes into effect April 28.

“Selling on Amazon is a great opportunity and a lot of potential, but every year I think it gets harder and harder,” Kornilov said. 

“We will be employing a fuel and inflation surcharge for the first time — a mechanism broadly used across supply chain providers,” Amazon said in a letter to sellers.

Amazon said they’ve been able to absorb cost increases in the past to reduce impact on sellers, but the constant change in inflation has led to the new charge.

“It feels like you’re being robbed constantly because they are increasing their fees all the time under different excuses,” Kornilov said. “It came from nowhere and it’s like basically two weeks notice.”

Kovrnilov said he is pivoting to more website promotions outside of Amazon, and he encourages consumers to check companies’ direct sites for products.

“Prices can be a lot lower than if you ordered the same product from Amazon, and that probably will be the case more and more because they keep changing the fees,” Kornilov said. 

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