Amazon Adds New 3.5% Surcharge for Sellers: What It Means for Your Online Orders

What this means for you: If you shop online, you will likely see higher prices on many items starting very soon. Amazon is adding a new fee for the sellers who use their warehouses, and those sellers usually pass these costs on to the customer.

The Details

Amazon is implementing a new 3.5% surcharge on shipping services. This fee applies to third-party sellers who use Amazon's Fulfillment services in both the United States and Canada.

This surcharge takes effect on April 17.

Amazon has labeled this fee as a "fuel and logistics" surcharge. The company says rising global costs and higher oil prices are the reasons for the change. Amazon claims it absorbed these costs for as long as possible, but now must pass them on.

This is significant because third-party sellers account for more than 60% of products sold on Amazon. Since most sellers operate on thin profit margins, they will likely raise their prices to cover this new 3.5% fee.

Who is Affected

• Canadian Shoppers: Anyone buying everyday items through Amazon.ca or Amazon.com that are shipped and handled by Amazon's logistics network.
• Third-Party Sellers: Small and medium-sized businesses that rely on Amazon to store and ship their products.

What You Should Do

1. Check the "Sold by" tag: Look to see if the item is sold by a third-party or Amazon directly. This fee applies to third-party sellers using Amazon's shipping.
2. Compare prices: Before buying big-ticket items, check other retailers to see if their prices have remained stable.
3. Buy in bulk: If you need non-perishable items, buying them now before the April 17 deadline might save you money.
4. Watch for price hikes: Be aware that prices on everyday goods may slowly creep up over the coming weeks.

Bottom Line

A new 3.5% surcharge starts on April 17 for sellers using Amazon's fulfillment services in the US and Canada. Since third-party sellers make up the majority of Amazon's sales, expect to see slightly higher prices on the items you buy online.