Amazon Will Increase Seller Fees to Ship Holidays Despite Rising Costs

NEWYORK-Amazon has raised third-party seller fees again. This time, Amazon is adding holiday fees for merchants that use fulfillment services from the company to ship their items.

From Oct. 15 to Jan. 14, sellers will be hit with an average fee of $0. 35 for each item that is sold through Amazon fulfillment services in Canada and the United States, according to the notice sent Tuesday by the company to sellers.

This is the second annual merchant fee increase by the internet retail giant. To offset the rising fuel costs and inflation in April, Amazon added a 5 per cent “fuel and inflation surcharge” to merchants. This is close to the highest point for four decades.

To make use of Amazon’s fulfillment services merchants must pay an additional fee. This fee varies depending on the item’s category, size and weight.

A notice was sent to Tuesday by Amazon indicating that the holiday season brings increased fulfillment and logistic costs because of the large volume of shipping. Amazon stated that it had previously been able to absorb these increases. It stated that seasonal costs were “reaching new heights” now.

” “Our selling partners are extremely important to us and this decision was not taken lightly,” said the company.

CNBC reported the increase in fees first.

Amazon does not make

Holiday price adjustments. The U.S. The U.S. Postal Service filed notices to increase temporary prices to pay for handling fees during holiday season.

But seller fees at Amazon–and their constant increases–are an issue since Amazon controls a large share of the online marketplace. Some critics believe that Amazon’s high fees may make it difficult for merchants to access its marketplace.

“Corporations with monopoly power tends to raise prices. That’s what we see here,” stated Stacy Mitchell. She is an Amazon critic, co-director for Institute for Local Self-Reliance and co-director for anti-monopoly group Institute for Local Self-Reliance. Small businesses are forced to make .”

payments because of Amazon’s online dominance.

Last Month, Amazon’s Chief Financial officer Brian Olsavsky stated during a press conference that third-party vendors represented 57 % of all total Amazon units during the three months that ended in June 30, which was the most recent period in Amazon’s history.

The Seattle-based company’s second-quarter earnings report also showed total revenue Amazon collects third-party sellers had jumped 13 percent compared to the prior year, while revenue from its own retail business had declined by 4 percent.

By Haleluya Hadero

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