Chicago Sun-Times (Sunday)

Amazon to raise seller fees for holidays amid rising costs

- BY HALELUYA HADERO AP Business Writer

NEW YORK — Amazon is raising charges on third-party sellers again — this time adding a holiday fee for merchants who use the company’s fulfillmen­t services to pack 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 U.S. and Canada, according to a notice the company sent to merchants Tuesday.

It’s the second fee hike imposed on merchants this year by the online retail behemoth. In April, the company added a 5% “fuel and inflation” surcharge to offset rising gas costs and inflation, which is running close to 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 the holiday season increases fulfillmen­t and logistics costs due to the volume of shipments being transporte­d. The company said it previously absorbed these cost increases. But seasonal expenses were now “reaching new heights,” it said.

“Our selling partners are incredibly important to us, and this is not a decision we made lightly,” the company said.

CNBC first reported on the hike in fees.

Holiday pricing adjustment­s are not novel to Amazon. This month, the U.S. Postal Service said it filed a notice to implement a temporary price hike to cover extra handling costs during the holiday season.

But at Amazon, seller fees — and their repeated increases — are a subject of contention since the company controls a vast share of the e-commerce market. Critics argue the company’s excessive fees could potentiall­y lock out merchants from its marketplac­e.

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