Amazons Taxes Have Gone Up, Which Means Higher Prices on Everything.
Amazon announced that starting on April 28th, any sellers who use their fulfillment services will need to start paying higher taxes in the form of a fuel surcharge. This comes about after gas prices have sky rocketed the last few months. “The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and Small and Light items,” per the Notice. “The surcharge will apply to all units shipped from fulfillment centers starting April 28.” This will apply to sellers who use the fulfillment services through Amazon, which is around 90% of the sellers. But they are not expected to eat those costs themselves, but instead raising prices on their items to cover that cost.
This Amazons Taxes charge will roughly be 5% extra added on to prices to cover the charge. Amazon had expected things to return to normal this year with the pandemic and prices, unfortunately they just seem to keep going up. There are many causes for this, between a shortage in truck drivers making deliveries. To big companies not being able to keep up with demand on necessities and groceries. In my local area we had a cream cheese shortage a few months ago and rarely could you find Nutella. We have also seen prices of used cars go up and even on internet and electricity. Prices are going up on everything and does not look to be slowing down any time soon.
Per an interview with Amazon on the taxes: “In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges,” an Amazon spokesperson said. “It is still unclear if these inflationary costs will go up or down, or for how long they will persist, so rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time—a mechanism broadly used across supply chain providers.” What are your thoughts on this? How are you coping with rising prices everywhere? Let us know in the comments!
