The largest parcel carrier in the United States just hit senders with a surcharge — and it's not USPS. Amazon (NASDAQ: AMZN), which delivered 6.7 billion packages last year (1), has announced a 3.5% fuel and logistics-related surcharge starting on April 17.
The stated cause for the surcharge is rising fuel prices from the Iran war, and while this surcharge will directly impact sellers, consumers could feel it, too, as price increases almost always flow downstream.
Amazon isn't the only delivery service making changes. The USPS is rolling out an 8% price increase for specific products on April 26 that will remain in place until January 17, 2027 (2). UPS has been operating with a variable surcharge structure (in the double digits) since April 13 (3) and FedEx added a 26.5% fuel surcharge on April 6 which is subject to weekly adjustment (4).
War-stricken fuel prices will likely continue to impact pockets of the economy in places we might not expect. For example, items coming from other countries have steeper costs to arrive in the U.S., which could be tacked onto the delivery costs when you place an order.
Amazon's add-on
The 3.5% surcharge applies to sellers using Amazon's fulfillment services, which includes the process of storing, packing and shipping orders. While sellers can manage their own fulfillment, many use an Amazon-affiliated service such as Fulfillment by Amazon (FBA) or Amazon Multi-Channel Fulfillment (MCF), according to USA Today (5).
The surcharge will be based on a seller's fulfilment fees, not the sale price of their items — roughly $0.17 per unit (6). How this will impact consumers ultimately falls on each individual seller. They either lose money by maintaining prices or risk losing customers by raising prices.
Some experts, like Stephen Henn, an economics professor at Sacred Heart University, told USA Today (7) that sellers could communicate the surcharge within the shipping fee. If a consumer can understand the breakdown of the shipping fee, they might be more understanding.
But what about Amazon Prime where shipping is free? The consumer will always see $0 shipping, but that doesn't mean the cost of the products won't go up.
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Trending up, across all transportation
The over $4 a gallon it costs to fill up your car has been given a lot of airtime lately, but what about other areas of transport?
Consumers should expect more price hikes rippling across ride-sharing apps, food delivery services, public transport, and airline tickets. It's happening in other regions like Australia, with Uber announcing a second price hike in weeks, where passengers will pay an extra 5 cents per kilometer (8) on top of a 6% fare increase introduced last month.
We're in a bit of a wait and see moment, as there are many factors at play.
Global challenges met with smart, small changes
If you're a regular Amazon shopper and you're worried about the surcharge, you could crosscheck with what you've paid in the past, as well as compare with other retailers. While Amazon is often unbeatable in terms of convenience, you might just need to add some extra buffer time if you order elsewhere.
Or better yet, pick a retailer that's close to home and aim to shop in-person for the next few months.
To be sure you don't overpay or get stuck with unclear surcharges, you could try to avoid shopping online or getting items through delivery. This counts for rides that you yourself may take to and from your destination, too. If you do need to rideshare, at the very least do a price check between platforms. Only 16.1% of riders open both Uber and Lyft to compare prices (9).
These small behavior changes are worth considering before you buy to help save on surcharges.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Yahoo Finance (1); United States Postal Service (2); UPS (3); FedEx (4); USA Today (5),(7); Amazon Seller Central (6); YouTube (8); Johns Hopkins University (9)
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Amanda Smith is a freelance journalist and writer. She reports on culture/society, technology, and health. Her ability to hold a mirror up to society, to see both the malaise and majesty, has led to assignments with highly respected titles such as The Guardian, Business Insider, MIT Tech Review, and National Geographic.
