Iran war impact: Amazon hikes seller charges as shipping costs soar

New York: Amazon has announced that it will impose a 3.5 percent fuel and logistics surcharge on third-party sellers operating on its platform, citing a sharp rise in fuel costs linked to the ongoing war in Iran.

Charge to take effect in phases

The temporary surcharge will come into force on April 17 for many sellers who rely on Amazon’s fulfilment services. The company confirmed the move in an email to The Associated Press on Thursday.

In its statement, Amazon noted that increased fuel and logistics expenses have driven up operational costs across the industry. It explained that while it has absorbed these additional costs so far, sustained pressure has made it necessary to introduce a temporary surcharge, similar to steps taken by other major carriers.

Amazon says surcharge is lower than rivals

The Seattle-based firm pointed out that the newly introduced charge is considerably lower than the surcharges currently being applied by other logistics providers. It reiterated its commitment to supporting sellers while continuing to offer a wide range of products at competitive prices.

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

Scope of the surcharge

The surcharge will initially apply to sellers in the United States and Canada who use Fulfilment by Amazon. From May 2, it will also extend to those using the Buy with Prime and Multi-Channel Fulfilment services.

Industry-wide trend amid rising costs

Amazon’s decision reflects a broader trend within the logistics sector, where companies are increasingly introducing surcharges to offset rising energy expenses as the Iran conflict continues.

Major carriers such as United Parcel Service and FedEx have already raised their fuel surcharges. Meanwhile, the United States Postal Service recently announced an 8 percent fuel surcharge on packages scheduled for shipment from April 26. According to its statement, this charge will remain in place until January 17, 2027.

With agency inputs