Amazon levies extra commission on merchants for the holiday season at the mercy of inflation

In yet another effort to combat rising inflationary pressures, Amazon plans to increase during the holiday season the commissions it charges merchants who sell their products through its platform, passing on some of the increased costs to them.

Specifically, starting October 15 and ending January 14, merchants using the Fulfillment by Amazon (FBA) platform will have to pay the e-commerce giant an additional 35 cents for each of their products sold in the US or Canada. as the company announced on Tuesday in an email to sellers.

It is noted that through the FBA platform, Amazon provides merchants with collection, packaging and shipping services.

The holiday surcharge is in addition to the applicable fees merchants pay for using the FBA platform services, which vary based on the size, category and weight of each item.

Amazon noted that it is imposing an additional charge for the holiday season for the first time as “its costs reach new heights,” making it harder for the company to absorb the costs associated with the peak shopping season.

“Our merchant partners are extremely important to us and this is not a decision we took lightly,” Amazon said in its email.

After all, sales for third-party accounts have become the core of the US giant’s e-commerce business, now accounting for more than half of its total online sales. Because of Amazon’s global reach and huge customer base, many retailers rely on the company for most, and in some cases all, of their business

Amazon has cashed in on that leverage. Third-party selling services revenue, which includes commissions collected by Amazon, fulfillment, shipping and other fees, rose 13% in the second quarter of 2022 compared to the same period a year earlier, to 27, 4 billion dollars. Total revenue from Amazon’s e-commerce business fell 4% in the same period.