You could see an Amazon price hike soon: Here's why

Victoria Rosenthal
nj.com (TNS)

Amazon is charging website merchants with an additional fee — and customers might foot the bill.

The e-commerce site will impose a 5% fuel and inflation fee on April 28 for U.S. third-party sellers using Amazon’s fulfillment services.

Amazon CEO Andy Jassy told CNBC’s Andrew Ross Sorkin the costs of inflation, the war in Ukraine and the coronavirus pandemic are too high for the company to pay on its own.

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“At a certain point, you can’t keep absorbing all those costs and run a business that’s economic,” Jassy said.

Amazon said in an email to sellers it had expected to return to normal when COVID-19 restrictions were lifted. This year, it absorbed many major cost increases to limit the impact on merchants.

“When we did increase fees, we were focused on addressing permanent costs and ensuring our fees were competitive with those charged by other service providers,” the company said in the email.

The latest cost-related fee increase follows the 5.2% hike imposed in January.

Experts say sellers will increase product prices to cover the additional fees.

“Consumers will lose,” said Channel Key CEO Dan Brownsher told Bloomberg. “Amazon already raised fees in January, so sellers will have to raise prices.”