Why prices might go up on Amazon

If you buy products from Amazon’s e-commerce site, you may soon see price increases. The reason ? A 4.3% “inflation and fuel surcharge” that will soon be applied to shipping costs paid by third-party sellers when Amazon manages the logistics of their products, reports LSA this Wednesday, April 27. On Amazon, nearly two million independent merchants list millions of their products whose shipment to the end customer is sometimes managed by a branch of the e-commerce giant. These sellers may have access to the company’s logistics and transportation network for their shipments in exchange for payment of a “fee”. Half of the products sold on Amazon.com come from these particular merchants, this article from the Guardian from April 14th.

In France, the surcharge that the latter will have to pay will be put in place from May 12, 2022. In a notice intended for third-party sellers published on its website, Amazon explains the reasons for this increase. It was fuel prices, which have been rising steadily for several months, and inflation affecting the United States and Europe, which led the logistics juggernaut to apply “for the first time a fuel surcharge and inflation, a mechanism widely used by all suppliers in the supply chain”, rather than a “final price update”.

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The e-commerce company says it’s raising fees to be competitive with other providers that have applied fuel surcharges, like FedEx and UPS, says the Guardian. In practice, the site will apply a 4.3% increase to its shipping rates when the product is shipped through Amazon’s logistics service to the United Kingdom, Germany, France, Italy and Spain. In France, this will result in an average increase in shipping rates of €0.20 per unit, details the company on its site. Another clarification: this surcharge does not apply to return processing fees, to which no supplement will be applied. It remains to be seen to what extent third-party sellers will impact this surcharge on their prices.

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