Amazon (NASDAQ:AMZN) has decided to impose a 3.5% “fuel and logistics-related surcharge” on third-party sellers availing its fulfillment services.
The surcharge, which comes into effect on April 17, is Amazon’s response to the oil price surge triggered by the Iran war, now in its fifth week. Amazon clarified in a note to sellers that the surcharge will apply to those in the U.S. and Canada and will be calculated on fulfillment fees rather than the items’ sale prices, reported CNBC on Thursday.
Amazon spokesperson Ashley Vanicek told the publication that the surcharge is “meaningfully lower” compared to those of other major carriers. On average, Fulfilment by Amazon (FBA) shipments incur an extra charge of 17 cents per unit, which varies by item size and dimensions.
The FBA service, popular among third-party sellers for picking, packing, and shipping items, has experienced “elevated costs in fulfillment and logistics” due to the industry-wide impact of the war. Amazon has absorbed rising costs but is now adding temporary surcharges, like other major carriers, to offset the increased expenses.
War Pushes Fuel, Shipping Costs
This move by Amazon further underscores the ripple effects of the Iran war on the global logistics and transportation industry. Late March, the U.S. Postal Service (USPS) notified regulators of a temporary price increase to better match transportation costs and ensure it covers operating expenses as required by law.
As the conflict drags on and the Strait of Hormuz remains partially closed, energy prices continue to rise. At 3:36 AM ET, Brent crude oil is trading 0.018% higher at $109.05 per barrel, while the U.S. gasoline prices at the pump crossed $4 per gallon, as per AAA.
Impact On Retail Sales, Consumer Spending
The impact is now spilling beyond logistics providers to consumers, as higher transportation and fuel costs begin feeding into broader household expenses.
While overall finances remain stable, spending growth is modest and uneven, making consumers more vulnerable to further energy price shocks, according to Goldman Sachs and Moody’s, reported Yahoo Finance.
Moody’s says higher gasoline prices effectively act like a tax on Americans, pushing households to spend more on essentials and cut discretionary spending, with the recent surge costing an estimated $8 billion.
Coresight’s John Mercer told Benzinga that value-focused retailers like Walmart (NYSE:WMT), dollar stores, and warehouse clubs are well-positioned to benefit, as higher fuel costs and uncertainty push price-sensitive consumers toward cheaper shopping options.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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