Decoding the Amazon Inflation Surcharge: Tips for Successful Management

If you're selling on Amazon, there's a good chance your profit margins are being affected by the recent inflation of FBA shipping prices. Here's an explanation of how this works and some tips for protecting yourself from it!

Amazon recently announced that they will be implementing an inflation surcharge for sellers on their platform. This has caused a lot of confusion among Amazon sellers, so today, we will break down this surcharge and how it will impact your business.

When businesses are struggling to keep up with rising expenses, Amazon's fee hikes will undoubtedly translate into higher costs for consumers.

5% Surcharge is on FBA Fulfillment Fees only

The new surcharge starts on 28th April and will impact all your fulfillment fees. Amazon confirmed that the surcharge could go up or down later.

Impact on Sellers

In January of 2022, Amazon increased fulfillment fees by 5-20%. This was a painful surprise for sellers who expected the typical yearly increases to start in Q2. While sellers have barely adapted to work with the recent increases, the latest surcharge was a painful surprise for sellers.

The surcharge impacts fulfillment fees only and does not increase commissions, advertising charges, storage fees, etc.

Amazon’s inflation surcharge is an unfortunate reality for sellers. However, it’s important to understand the impact on your business and take steps to mitigate any negative consequences. For customers, it’s important to be aware of the upcoming increase in prices. We hope this article has helped you understand Amazon’s inflation surcharge and its implications for both sellers and buyers.