Amazon is Raising Seller Fees For the Holidays To Manage Through Surging Inflation

In its latest effort to contend with soaring inflation, Amazon is planning to raise fulfillment fees during the holiday season, passing off some of its increased costs to the millions of merchants who rely on the site to sell their products. From a report: Starting Oct. 15, and running through Jan. 14, third-party sellers who use Fulfillment by Amazon, or FBA, will have to pay 35 cents per item sold in the U.S. or Canada, the company said Tuesday in an email to sellers. For merchants using FBA, Amazon handles the process of picking, packing and shipping items. The holiday fee comes on top of existing charges that sellers pay for using FBA services. Those costs vary depending on an item's size, category and weight. Amazon said it's implementing an added holiday surcharge for the first time as "expenses are reaching new heights," making it harder for the company to absorb costs tied to the peak shopping season. "Our selling partners are incredibly important to us, and this is not a decision we made lightly," Amazon said in the email. Amazon's third-party marketplace has become the centerpiece of its dominant e-commerce business, as it now accounts for more than half of online retail sales. Because of Amazon's global reach and massive customer base, many retailers count on the company for the majority, and in some cases the entirety, of their business.

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