Amazon Canada fuel surcharge kicks in on Friday
As rising fuel costs impact companies nationwide, Amazon Canada is introducing a new fuel surcharge.
Gas prices have surged following the Middle East conflict, pushing up fuel costs and adding pressure on companies like Amazon Canada. As a result, the company is adjusting its fee structure to help offset higher transportation and delivery costs.
A company spokesperson told Daily Hive in an email that the surcharge is set to kick in on Friday, April 17.
Who will be paying for the extra cost?
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If you rely on Amazon Canada for your essentials, there’s some good news: the fuel surcharge won’t be charged directly to customers.
Instead, Amazon Canada says the added cost will be passed on to sellers in the U.S. and Canada that rely on Amazon fulfillment services.
How much will sellers have to pay for the fuel surcharge?
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According to Amazon Canada, the fuel surcharge that sellers must pay will be calculated as a percentage of fees.
“We will apply a 3.5 per cent fuel and logistics-related surcharge to fulfillment fees — meaningfully lower than surcharges applied by other major carriers,” stated the Amazon spokesperson. “We remain committed to our selling partners’ success and to maintaining broad selection and low prices for customers.”
Although sellers are expected to shoulder the added cost, it remains to be seen whether or not customers will end up paying for the fuel surcharge.
Other delivery services are impacted
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Although Amazon is charging sellers, other services will be charging Canadian customers directly.
Each week, Canada Post updates its site with the latest fuel surcharges.
Until April 19, domestic services will have a 40 per cent surcharge, up from 39 per cent the previous week. Fuel surcharge for U.S. and international parcel services are up from 22.75 per cent to 23.25 per cent, while U.S. and international packet services are up from 20.75 per cent to 21.25 per cent.
FedEx, UPS, and Purolator also publish weekly rates online.
These are the other companies impacted by increasing fuel prices.
With files from Isabelle Docto