Shulou(Shulou.com)11/24 Report--

In response to soaring inflation, Amazon plans to raise service charges during the holiday season this year and pass on some of the increased costs to millions of third-party merchants who rely on the site to sell products.

Third-party sellers using the Amazon delivery service (FBA) must pay an extra 35 cents per item sold in the United States or Canada between October 15 and January 14, 2023, Amazon said in an email to sellers on Tuesday, local time. For merchants using FBA, Amazon handles the selection, packaging and shipping process.

At present, when using FBA services, the seller's fees will vary depending on the size, category and weight of the goods. Amazon said it would charge additional holiday fees for the first time because its "spending is reaching a new level", making it harder for the company to cope with costs associated with the peak shopping season.

"sales partners are very important to us, so this is not a rash decision, but a well-thought-out decision," Amazon said in an email. "

Amazon's third-party market has become the core of its e-commerce business, and the company now accounts for more than half of online retail sales. Because Amazon has a large user base around the world, in some cases, many retailers rely on the company for most or even all of their business.

Amazon has been taking advantage of this advantage, with revenue from third-party vendor services rising 13% year-on-year to $27.4 billion in the second quarter. The third-party seller's service income includes commissions, distribution fees, freight and other fees charged by Amazon. Over the same period, Amazon's e-commerce revenue fell by 4%.

Amazon's seller service fees have risen this year because of rising costs associated with inflation, supply chain restrictions and international tensions. Amazon's spending is also rising sharply as warehouses hire a large number of staff to meet the challenge of surging e-commerce demand triggered by the epidemic.

"at some point, you can't bear all these costs and run an affordable business at the same time," Amazon CEO Andy Jassy said in an interview in April.

An Amazon spokesman pointed out that this extra charge for holidays is an "industry-wide practice" and has been in practice for many years. Large delivery companies such as the United States Postal Service and FedEx usually announce surcharges during the holiday shopping season.

As the July consumer price index report shows, inflation, though off its early summer highs, is still quite high, with prices rising 8.5% from a year earlier. Although gasoline prices have fallen, they are still 44% higher than in the same period last year.

Many economists believe that supply chain problems should be resolved sooner than expected and that falling world commodity prices will eventually push food prices down.

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