Amazon to increase 3rd-party seller fees for holidays amid rising costs – National

Amazon is raising fees for third-party sellers again — this time adding a holiday fee for sellers who use the company’s fulfillment service to pack and ship items to customers.

Between October 15 and January 14, sellers will pay an average fee of $0.35 per item sold using Amazon’s fulfillment service in the US and Canada, according to a notice released by the company. company sent to the seller on Tuesday.

This is the second increase in fees for merchants this year by the online retail giant. In April, the company added a 5% “fuel and inflation” surcharge to offset rising gas costs and inflation, close to a four-decade high.

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To use Amazon’s fulfillment service, sellers had to pay a fee that varied depending on the item’s size, weight, or category.

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In a notice sent on Tuesday, Amazon noted that the holiday season increases shipping and logistics costs due to the volume of shipments shipped. The company said it had previously absorbed these cost increases. But seasonal costs have now “reached new heights,” it said.

“Our sales partners are extremely important to us and this is not a decision we have taken lightly,” the company said.

CNBC first reported on the fee increase.

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Holiday price adjustments are nothing new to Amazon. Last week, the US Postal Service said it had filed notice of a temporary price increase to cover additional holiday handling costs.

But at Amazon, seller fees – and their ongoing rise – are a controversial topic because the company controls a large portion of the e-commerce market. Critics say the company’s outrageous fees could drive merchants out of its marketplace.

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Stacy Mitchell, an Amazon critic and co-director of the antitrust group, the Institute for Local Self-Reliance, said: “Corporations with monopolistic power tend to raise prices, and that’s what we’re doing. see here. “Amazon’s dominance in the online marketplace means small businesses have no choice but to pay.”

Last month, Amazon Chief Financial Officer Brian Olsavsky said in a media call that third-party sellers represent 57% of all units sold on Amazon in the three-month period ending June 30. June, the highest level in the company’s history.

The Seattle-based company’s second-quarter earnings report also showed that Amazon’s total revenue from third-party sellers was up 13% year over year, while revenue from its retail business increased by 13%. themselves fell 4%.

© 2022 Canadian Press

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