Amazon hits sellers with ‘fuel surcharge’ as Iran war rocks global energy markets

The war in Iran has hit global oil markets, with US gas prices falling. increasing significantly. Amid rising transportation costs, Amazon has instituted a new 3.5% fuel surcharge for sellers using its distribution network. The policy has the potential to inflict significant new costs on the countless merchants who rely on the e-commerce giant to sell their products.

Amazon told TechCrunch that the surcharge would be in place for the foreseeable future, although the company said it will continue to evaluate a potential policy change as market conditions evolve. the news was originally reported by Bloomberg.

“High fuel and logistics costs have increased operating costs across the industry,” a spokesperson said. “We have absorbed these increases so far, but like other major airlines, when costs remain high we implement temporary surcharges to partially recover these costs.” The spokesman added that the surcharge was “significantly lower than surcharges applied by other large companies.”

The new policy will go into effect on April 17 and will affect sellers who use the company. Fulfillment by Amazon servicewrites Bloomberg. Fulfillment by Amazon, commonly known as FBA, allows businesses to ship their products to Amazon warehouses, where they are packaged and shipped to buyers. Amazon does not disclose how many merchants use FBA, but the program supports the vast majority of third-party sales on its platform.

Amazon instituted this type of surcharge for the first time in 2022, which, not coincidentally, was the last time Crude oil is trading at more than $100 a barrel.. What was happening in 2022? Russia had just invaded Ukraine. Driving energy markets crazy. Today, the war in Iran, promoted by the Trump administration and the Israeli government murder of the nation’s Supreme Leader—has similarly shaken markets.

Iran is strategically located along the northern border of the Strait of Hormuz – a narrow but critical sea route for global oil supplies through which approximately 20% of the world’s oil supply passes – and the country has tried to block the sea routes therea movement that has mostly shocked Energy prices around the world.