Amazon adding fuel surcharge for Canada and the U.S. sellers

Amazon will soon apply a 3.5 per cent fuel surcharge to fulfillment fees for Canadian and U.S. sellers.

The surcharge will first take effect on April 17 for those in the Fulfillment by Amazon program, which has the e-commerce giant handle packing and shipping for sellers. On May 2, the added fees will extend to those in the Multi-Channel Fulfillment program, which is used by sellers with their own online Amazon storefronts.

In a statement to CBC News, an Amazon spokesperson attributed the surcharge to “elevated costs in fuel and logistics.” It claims it’s “absorbed these increases” so far but must now “implement temporary surcharges to partially recover these costs.”

Unfortunately, we’ll likely see sellers pass these increased costs on to consumers.

Of course, the company didn’t explicitly mention one of the root causes for these increased costs: U.S. President Donald Trump’s war with Iran, which has caused fuel prices to skyrocket worldwide. The White House now says ceasefire talks are being discussed after Trump launched an unhinged, expletive-filled tirade at Iran over the weekend, demanding the opening of the Strait of Hormuz, a major oil shipping channel.

For now, though, the revenue calculator tools on Amazon’s Seller Central website have been updated to reflect the surcharge.