Amazon will impose holiday shipping costs to third-party retailers.

For the second time this year, Amazon will increase the costs for third-party sellers, this time by adding a holiday fee for businesses who use the company’s fulfilment services to package and ship goods to customers.

According to a notification the firm sent to merchants last week and examined by The Post, the so-called “holiday peak fulfilment fee” would run from Oct. 15 to Jan. 14 and raise costs for sellers in the US and Canada by an average of 35 cents per item sold.

The tax follows a rise of an average of 24 cents per unit that the e-commerce behemoth passed along to its sellers in April as part of a “fuel and inflation levy.”

According to Reuters, Amazon stated at the time in a memo to sellers, “We have encountered considerable cost increases and absorbed them, when possible, to mitigate the impact on our selling partners.” As COVID-19 restrictions around the world loosened in 2022, “we anticipated a return to normalcy, but gasoline and inflation have caused further obstacles.”

Amazon increased merchants’ fees in April by a “fuel and inflation” extra.

Amazon cited an anticipated rise in its own operating costs during the busiest holiday season as the cause of the most recent price increase, adding that in the past it had already absorbed such charges.

The email from Amazon, which was first reported by The Wall Street Journal, stated that “Seasonal expenses are hitting new heights.”

In order to cover additional handling expenses over the holiday season, the U.S. Postal Service and FedEx both announced temporary price increases last week.

Since the corporation dominates a sizable portion of the e-commerce market, seller fees at Amazon — and their ongoing hikes — are a contentious issue.

An Amazon worker with a package in a plastic wrapping.

According to detractors, the company’s high costs can prevent retailers from accessing its marketplace.

Stacy Mitchell, an opponent of Amazon and co-director of the anti-monopoly organisation Institute for Local Self-Reliance, stated that “corporations that have monopoly power tend to raise prices, and that’s what we’re seeing here.” “Small firms have little choice except to pay extra because Amazon dominates the internet industry,”

Regarding the fee rise, Amazon declined to make any public remarks.

The largest percentage ever recorded by the company, according to Brian Olsavsky, chief financial officer of Amazon, third-party sellers accounted for 57% of all units sold on the site for the three months that concluded on June 30.

The Seattle-based company’s second-quarter financial release also revealed that while sales from its own retail division had decreased by 4%, it had increased 13% overall in terms of revenue from third-party sellers.

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Akanksha Jain

Akanksha Jain love to learn new stuff every day. With a background in computer science and a passion for writing, she loves writing for Startup, Business sections of Editorials99.

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