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Amazon introduces fuel surcharge for Canadian sellers using fulfilment program
Amazon says the fee will be charged to sellers, not customers, as rising fuel and logistics costs push up delivery expenses.
- On Thursday, Amazon Canada announced a 3.5 per cent fuel surcharge on fulfillment fees for Canadian sellers, effective tomorrow to recover elevated logistics costs.
- War in the Middle East and the blockaded Strait of Hormuz caused gas prices to soar, prompting the decision after Spokesperson Andrew Gouveia stated Amazon had previously absorbed these surging logistics expenses.
- Amazon will charge the fee directly to businesses using its fulfillment program rather than consumers, with Gouveia noting the 3.5 per cent rate is lower than surcharges applied by other major carriers.
- Other delivery services including Canada Post, UPS, and FedEx are also increasing their own fuel surcharges, leaving it unclear whether sellers will pass these expenses to customers.
- Companies in Canada using Amazon fulfillment services now face immediate pressure on operating margins, reflecting the broader economic impact of rising global fuel and logistics costs on e-commerce.
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This 3.5% supplement on logistics costs will come into effect Friday, said the trade giant.
·Montreal, Canada
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Coverage Details
Total News Sources17
Leaning Left9Leaning Right1Center5Last UpdatedBias Distribution60% Left
Bias Distribution
- 60% of the sources lean Left
60% Left
L 60%
C 33%
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