Amazon adding fuel surcharge for Canadian sellers starting April 17


Business

Amazon is applying a fuel surcharge to fulfillment fees for Canada-based sellers starting on April 17, a spokesperson for the e-commerce giant confirmed to CBC News on Thursday.

Company will apply the 3.5 per cent surcharge in response to elevated oil prices

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A package with a checkmark logo on a conveyor belt
An Amazon package crosses a conveyor belt in this photo taken on Nov. 21, 2024. Amazon is applying a fuel surcharge to fulfillment fees for Canada-based sellers starting on April 17, a spokesperson for the e-commerce giant confirmed to CBC News on Thursday. (Ina Fassbender/AFP/Getty Images)

Amazon is applying a fuel surcharge to fulfillment fees for Canada-based sellers starting on April 17, a spokesperson for the e-commerce giant confirmed to CBC News on Thursday.

The 3.5 per cent surcharge will apply to those using Fulfillment by Amazon to sell on the Amazon website in the U.S. and Canada. Sellers who use the company’s Multichannel Fulfillment will see a surcharge on May 2 onwards.

“Elevated costs in fuel and logistics have increased the cost of operating across the industry,” the spokesperson said in a statement, saying the company has “absorbed these increases” so far.

“But similar to other major carriers, when costs remain elevated we implement temporary surcharges to partially recover these costs,” the spokesperson wrote.

“We remain committed to our selling partners’ success and to maintaining broad selection and low prices for customers.”

A number of major companies who offer consumer services have added fuel surcharges to their base rate in the weeks since the beginning of a global energy crisis that began with the U.S. and Israel’s attack on Iran.

Iran retaliated partly by closing the Strait of Hormuz, a tiny waterway through which a fifth of the world’s oil passes through.

ABOUT THE AUTHOR

Jenna Benchetrit is the senior business writer for CBC News. She writes stories about Canadian economic and consumer issues, and has also recently covered U.S. politics. She was part of the team that won a silver Digital Publishing Award in best news coverage for covering the 2024 U.S. election. A Montrealer based in Toronto, Jenna holds a master’s degree in journalism from Toronto Metropolitan University. You can reach her at jenna.benchetrit@cbc.ca.

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