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Amazon to raise holiday seller fees amid rising costs

NEW YORK — Amazon is again increasing fees for third-party sellers – this time adding holiday fees for merchants who use the company’s fulfillment services to package and ship items to customers.

From Oct. 15 to Jan. 14, sellers will be hit with an average fee of $0.35 per item sold using Amazon’s fulfillment services in the United States and Canada, according to a notice the company sent to consumers. traders on Tuesday.

This is the second fee hike imposed on merchants this year by the online retail giant. In April, the company added a 5% “fuel and inflation” surcharge to offset rising gas costs and inflation, which is near its highest level in four decades.

To use Amazon’s fulfillment services, merchants already have to pay a fee that varies based on an item’s size, weight, or category.

In the notice sent Tuesday, Amazon noted that the holiday season increases fulfillment and logistics costs due to the volume of shipments carried. The company said it was previously absorbing these cost increases. But seasonal spending was “now reaching new heights”, he said.

“Our business partners are extremely important to us, and this is not a decision we took lightly,” the company said.

CNBC first reported on the fee hike.

Holiday price adjustments aren’t new to Amazon. Last week, the U.S. Postal Service said it filed a notice to implement a temporary price hike to cover additional processing fees during the holiday season.

But at Amazon, seller fees — and their repeated increases — are a point of contention since the company controls a vast share of the e-commerce market. Critics say the company’s excessive fees could potentially shut traders out of its market.

“Companies that have monopoly power tend to raise prices, and that’s what we see here,” said Stacy Mitchell, Amazon reviewer and co-director of the anti-monopoly group Institute for Local Self-Reliance. “Amazon’s dominance in the online marketplace means small businesses have no choice but to pay.”

Amazon Chief Financial Officer Brian Olsavsky said on a media call last month that third-party sellers accounted for 57% of total units sold on Amazon in the three-month period that ended. on June 30, the highest in company history.

The Seattle-based company’s second-quarter earnings report also showed that total revenue Amazon collects from third-party sellers jumped 13% from a year earlier, while revenue from its own business retail sales decreased by 4%.

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This story has been updated to correct that vacation fees end on January 14, not January 23.

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Post expires at 5:58am on Friday August 26th, 2022