Higher shipping prices could trickle down to consumers after Amazon announced that it is levying a 3.5% fuel surcharge on some third-party sellers.
Those merchants accounted for more than 60% of items sold on Amazon’s platform in 2024, according to Marketplace Pulse.
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The new surcharge takes effect on April 17. Amazon had previously absorbed higher fuel costs caused by the war in Iran.
Gasoline and diesel price increases
On Friday, AAA reported the average price for a gallon of regular unleaded gasoline has reached $4.09 nationally, up nearly $1 from a month ago. Diesel prices, which are critical to the shipping industry, are even higher at $5.53 a gallon, up from $3.89 a month ago.
“Similar to other major carriers, when costs remain elevated we implement temporary surcharges to partially recover these costs,” an Amazon spokesperson told The Wall Street Journal.
The surcharge will apply to American and Canadian sellers that deliver goods through Amazon’s Fulfillment by Amazon option. On May 2, sellers who use the Buy with Prime and Multi-Channel Fulfillment option will be subject to the new fee.
Competitors’ fuel surcharges
Delivery giants FedEx and UPS have already increased their fuel surcharges to cope with rising fuel costs.
SupplyChainDive reports that FedEx’s surcharge was at 25% for ground domestic shipments, while the UPS rate was similar at 25.5% as of mid-March. However, both carriers adjust their fuel surcharges on a weekly basis based on fuel prices posted by the U.S. Department of Energy.
U.S. Postal Service fuel surcharge
As Straight Arrow News reported last week, the U.S. Postal Service announced its first-ever fuel surcharge in the wake of rising fuel prices. The 8% surcharge on Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select deliveries begins April 26 and is expected to continue until Jan. 17, 2027.
“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the agency said. “We have steadfastly avoided surcharges and this charge is less than one-third of what our competitors charge for fuel alone.”
Dollars and cents
The USPS surcharge will mean an increase of anywhere from $1 to $2.50 per package, depending on the size.
For Amazon, the Journal reports the new 3.5% fuel levy translates to an additional 17 cents per unit for sellers who use the Fulfillment by Amazon option and will vary by size of the item.
It would be up to the sellers to decide whether to pass that additional cost down to the consumers.
This story has been updated to reflect that the surcharge only applies to some third-party sellers, not all.
