During the holiday season, Amazon will pass on some of its increased costs to merchants who depend on the site to sell their goods.
Third-party sellers who use Fulfillment by Amazon will have to pay 35 cents per item sold in the US or Canada starting in October and running through January. The process of packing and shipping items is handled by Amazon.
There are additional charges that sellers pay for using the services. The costs depend on the size, category and weight of the item.
The holiday surcharge will be implemented for the first time as expenses are reaching new heights making it harder for the company to absorb costs during the peak shopping season.
Amazon said in the email that it was not a decision they made lightly.
More than half of online retail sales are now accounted for by Amazon's third-party marketplace. Many retailers rely on Amazon for the majority of their business because of the company's global reach and huge customer base.
Amazon has been taking advantage of that leverage. The revenue from third-party seller services rose in the second quarter from a year earlier. During the same time, Amazon's total revenue declined.
Amazon manages through higher costs tied to inflation, supply chain constraints and the war in Ukranian by increasing sellers fees. Amazon's expenses went up due to rapid hiring to meet a surge in e- commerce demand.
In an interview with CNBC in April, Andy Jassy said that it was time to stop absorbing all those costs.
surcharges are usually announced by major carriers during the holiday season. A price hike for the holidays was requested by the USPS.
Amazon is competing with FedEx andUPS.