E Point Perfect

Sellers face Amazon price hike in the US and Canada

Amazon to fulfil orders from retail stores in the US
Amazon to fulfil orders from retail stores in the US
// Amazon sellers face holiday season costs increase
// Amazon move impacts US and Canada with UK situation unclear

Amazon Inc said on Tuesday that it is to charge an additional fee to some sellers during the upcoming US holiday season to offset rising costs of labour and logistics.

The Amazon price hike comes at a time of unprecedented market pressure.

The online giant is to impose a fee of 35 cents per item, to be charged on goods sold via Amazon’s warehouse and logistics network in the United States and Canada from 15 October 2022 through to 14 January 2023, the company said in a statement.

“We have previously absorbed these cost increases, but seasonal expenses are reaching new heights,” Amazon said, explaining the move.

Currently it is not yet clear whether Amazon intends to impose additional levies on its sellers in the UK, but the North American and British markets are facing many similar economic challenges.

READ MORE: Amazon sees second quarterly loss in a row, but revenue tops estimates

Inflation is posing severe challenges for the US retail landscape by driving up labour and transportation costs, while rising prices are forcing consumers to rein in spending. UK households and retailers are facing many of the same headwinds, shifting buying patterns as hard-up families adjust to new realities.

Blaming the same pressures, Amazon hiked prices for its Prime service from £79 to £95 in the UK recently – following similar measures in the US – and the company said in July that it was slowing down warehouse openings globally, especially in North America, as part of cost control measures.

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