Amazon UK prices could rise as it imposes ‘fuel and inflation’ levy on sellers

Amazon hires new global retail boss
// Amazon prices could rises as it introduces a 4.3% surcharge for its Fulfilment by Amazon sellers
// The levy will come into force on 12 May and is being introduced to offset rocketing inflation and record fuel prices

Amazon shoppers could could be hit with higher prices after the online giant revealed it will impose a new levy on sellers to offset spiralling inflation and record fuel prices.

From 12 May Amazon’s UK operation will add a “fuel and inflation surcharge” of 4.3% to fulfilment fees for marketplace sellers that use its ‘Fulfilment by Amazon’ (FBA) service.

It is likely that sellers will pass on the cost increase to customers.

READ MORE: Primark raises prices as its unable to offset rising inflation

Amazon chief executive Andy Jassy said the new charges are a response to rising costs following the pandemic and war in Ukraine and would be introduced to many of its markets.

He said: “At a certain point, you can’t keep absorbing all those costs and run a business that’s economic.”

However, Amazon’s profits tripled in 2020 following soaring online sales during the pandemic.

City AM reported 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.”

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

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