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Chronicles

The story behind the story

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Amazon tells merchants using Fulfillment by Amazon to pay a fee of 35¢ per item sold in the US and Canada from October 15 to January 22, citing rising expenses

CNBC Annie Palmer

Context & Ripple Effects

The 35¢ per-item holiday fee is the second surcharge Amazon has layered onto Fulfillment by Amazon sellers this year, following the ~5% fuel and inflation surcharge added in April 2022 — itself pitched as cheaper than comparable surcharges at UPS and FedEx. It marks a reversal from late 2020, when Amazon delayed a planned raise in storage and shipping fees rather than impose one.

The fee also sits inside a longer arc about how Amazon charges sellers who leave its warehouses: a year later, leaked documents showed plans for a 2% fee per sale on merchants who ship products themselves, which was subsequently scrapped after disclosure. And the surcharge habit stuck — by 2026 Amazon was again adding a 3.5% fuel and logistics surcharge to US and Canadian fulfillment fees when oil prices spiked.

First-order effects

  • FBA merchants selling in the US and Canada face a direct per-unit cost increase of 35¢ across the entire Q4 peak season, forcing repricing or margin absorption decisions before the holidays.
  • Sellers who had already priced in the April fuel-and-inflation surcharge now have to model stacked add-ons rather than a single annual fee schedule.

Second-order effects

  • Merchants weighing self-fulfillment gain a fresh cost argument for leaving FBA — precisely the leakage Amazon tried to tax with its later-planned 2% fee on self-shipping sellers, suggesting the company sees defection risk at the warehouse boundary.
  • With Amazon's surcharges still benchmarked below UPS and FedEx's, carrier pricing becomes the ceiling that lets Amazon keep adding fees while claiming relative value to sellers.

Third-order effects

  • If 'temporary' surcharges keep recurring across cycles, FBA's headline fee schedule becomes a floor rather than a price, and sellers' real cost of Amazon fulfillment turns volatile enough to reshape sourcing and channel-mix decisions.
  • A fee structure that penalizes both using the warehouses (surcharges) and avoiding them (the attempted self-ship fee) points toward tighter lock-in around FBA — the kind of seller-fee dynamics that historically draw antitrust and regulator attention, though whether scrutiny materializes remains open.

The trend: Amazon is converting episodic cost shocks into a recurring cadence of seller surcharges, turning fulfillment fees from a fixed published rate into a variable lever it adjusts whenever expenses rise.

Discussion

  • @stevekovach Steve Kovach on x
    Amazon raising its fulfillment fees on third-party sellers for the holidays for the first time. Inflation. https://www.cnbc.com/...
  • @jordannovet Jordan Novet on x
    ‘Expenses are reaching new heights.’ -Amazon https://www.cnbc.com/...
  • @ivanthek @ivanthek on x
    Landlord is raising the rent. https://twitter.com/...
  • @madscapital @madscapital on x
    $AMZN hiking shipping prices to 35 cents per item for FBA. USPS announced earlier they'd hike to 75 cents per parcel. https://www.cnbc.com/...