New Fuel & Inflation Surcharge FBA Fee Starting April 28, 2022

Amazon Marketplace

Amazon has announced that starting April 28, 2022, a 5% Fuel & Inflation surcharge will be added to the existing FBA Fulfillment Fees on every FBA Sale.

This 5% increase is in response to the rising cost of fuel and the rising rates of inflation that Amazon has been experiencing, and part of that is going to be passed through to sellers moving forward. This is impactful for most sellers, as 5% is a considerable amount on the overall business.

Fuel-surcharge2

Running a profit analysis

We recommend all brands and sellers to do a full profit analysis, applying the new surcharge to each product you are selling via FBA, to ensure that it’s still profitable for your business. Doing this and acting quickly should protect you from unwanted loss in profit.

Note: Amazon did state that the 5% surcharge is subject to change, so it is possible that it isn’t permanent, or could decrease/increase over time. However, the fees as of April 28 can be found by visiting the Amazon help page, and zeroing in on the type of product you are selling.

Consider your options 

Once the profit analysis is complete, you may uncover that some products are now not worth sending to Amazon once all fees are applied. In most cases, if the numbers don’t add up, the best choice is likely to stop selling that product via FBA. As an alternative option, you can choose to Fulfill the product by Merchant (FBM).

If you don’t have the resources or bandwidth to store, pick, and ship orders, consider hiring an agency such as Retail Bloom, who specializes in wholesaling products, and can get them to the end user quickly through FBM offerings.

With the constant updates in online marketplaces, it’s important to stay up-to-date with the latest changes. If you are a client looking for additional information, contact your strategist or if you are interested in learning more about how Retail Bloom can assist your brand efforts in online marketplaces, schedule a consultation with our team. 

For more updates on marketplaces, visit our full Marketplace Updates content gallery.

Ready to expand your brand?
Drop us a line.

Which services are you interested in? Check all that apply.
Blue Wheel is committed to protecting and respecting your privacy, and we’ll only use your personal information to administer your account and to provide the products and services you requested from us. From time to time, we would like to contact you about our products and services, as well as other content that may be of interest to you. If you consent to us contacting you for this purpose, please tick below to say how you would like us to contact you:
You can unsubscribe from these communications at any time. For more information on how to unsubscribe, our privacy practices, and how we are committed to protecting and respecting your privacy, please review our Privacy Policy.

By clicking submit below, you consent to allow Blue Wheel to store and process the personal information submitted above to provide you the content requested.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.