LAS VEGAS (KLAS) — Skyrocketing inflation means that costs are being passed down to just about everyone.
More businesses are feeling the pinch, even big online retailers. Amazon is now joining the long list of tech companies adding fuel and inflation fees, fees that will likely be passed onto consumers.
Amazon will now add a 5% fuel and inflation surcharge to third-party users who use their fulfillment services.
“It came from nowhere and it’s like a basically two weeks’ notice,” said Maxim Kornilov, Organo Republic CEO.
Organo Republic is a Florida e-commerce seed dealer which has been selling products on Amazon since 2016.
Kornilov’s company will be affected by the new fee, which goes into effect April 28.
“Selling on Amazon is a great opportunity and a lot of potential, but every year I think it gets harder and harder,” he said.
In a letter to sellers, Amazon said its been able to absorb cost increases in the past, but the constant change in inflation has led to the new charge.
“It feels like you’re being robbed constantly because they are increasing their fees all the time under a different excuse,” Kornilov continued.
He said he is pivoting to more website promotions outside of Amazon, and encourages consumers to check companies’ direct sites for products.
“Prices can be a lot lower than if you ordered the same product from Amazon and probably will be the case more and more, because they keep changing the fees,” he said.