NEWS

Amazon UK sellers hit with fuel and inflation levy

Published on: 27th April 2022

The surcharge, due to high fuel prices and spiralling inflation, could see Amazon marketplace sellers having to put their prices up.

Sellers on Amazon UK may be forced to raise prices for customers after being hit with a a 4.35% inflation and fuel levy.

Retail Gazette reports that the surcharge will come into force on 12th May for marketplace sellers that use its ‘Fulfilment by Amazon’ (FBA) service and is being introduced to offset rocketing inflation and record fuel prices.

The levy will also be introduced to FBA sellers in Germany, France, Italy and Spain.

Amazon chief executive Andy Jassy defended the levy saying the new charges are in response to rising costs following the pandemic and war in Ukraine and would be introduced to many of its markets. “At a certain point, you can’t keep absorbing all those costs and run a business that’s economic,” he said.

Retail Gazette reports that Amazon’s profits tripled in 2020 following the huge increase in online sales during the pandemic.

City AM reports that Amazon told UK FBA sellers: “It’s still unclear if these inflationary costs will go up or down or for how long they will persist. Rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time.”

 

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