At a Glance:
- Amazon has confirmed that it will be surging the price by a 5% fuel and inflation surge.
- Amazon will charge an average of 24 cents more per unit to the stores and shipping through the fulfillment services.
- Amazon will not be adding cryptocurrency as a payment option to the retail business anytime soon.
Amazon has confirmed that it will be surging the price by 5% fuel and inflation surge on the merchants to warehouse and ship the products in the U.S. This is a response to the rising costs.
The first surge comes after the higher wage and labor-related expenses. The onset of expenses has been affecting Amazon’s profit.
Amazon price surge
The 5% charge surge will be effective from 28th April. Company will charge an average of 24 cents more per unit to the stores and shipping through the fulfillment services by Amazon. The surge is not permanent but a mechanism broadly used across supply chain providers.
Amazon penned a message for the merchants that reads, “We have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners. In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges.”
Company has only initiated the price surge in the U.S. which is currently the biggest market for the retail company. The sellers can avoid the price surge by shipping the goods to customers themselves but several of these sellers rely on FBA for eligibility in Amazon’s fast-delivery club Prime. However, Amazon has commented that its fulfillment services are still significantly less than the alternatives.
In other news
Amazon CEO, Andy Jassy said in an interview that the company will not be adding cryptocurrency as a payment option to the retail business anytime soon. Amazon might add NFTs to the e-commerce platform as the digital asset is growing significantly. Several other companies have started to accept digital currencies for payment and bringing an asset class shunned by the major financial institutions before it becomes mainstream.
