Amazon hits sellers with ‘fuel surcharge’ as Iran war roils global energy markets

The ongoing conflict in Iran has severely impacted global oil markets, leading to a notable surge in gas prices across the United States. In response to rising transportation expenses, Amazon has announced a 3.5% fuel surcharge for sellers utilizing its distribution network, a decision that could significantly raise costs for many merchants relying on the e-commerce platform. Amazon confirmed to TechCrunch that this surcharge is set to remain in effect for the foreseeable future. However, the company also indicated that it would reassess the policy as market conditions change. According to a spokesperson, the decision was made in light of increased fuel and logistics costs affecting the entire industry. "We have absorbed these increases so far, but similar to other major carriers, we are implementing temporary surcharges to partially recover these costs when they remain elevated," the spokesperson explained, adding that Amazon's surcharge is "meaningfully lower than those applied by other major carriers." The surcharge is scheduled to take effect on April 17 and will particularly affect sellers using the Fulfillment by Amazon (FBA) service. This program enables businesses to send their products to Amazon's warehouses for packing and shipping directly to customers. While Amazon does not disclose the exact number of merchants using FBA, it is known that this service supports the majority of third-party sales on the platform. This is not the first time Amazon has introduced such a surcharge; a similar measure was put in place in 2022, coinciding with crude oil prices exceeding $100 per barrel. The previous increase was also linked to geopolitical tensions, specifically the invasion of Ukraine by Russia. The current situation in Iran, exacerbated by the actions of the Trump administration and the Israeli government, has similarly unsettled energy markets. Iran's strategic location near the Strait of Hormuz—through which approximately 20% of the world’s oil supply is transported—has led to efforts to block shipping routes, further influencing global energy prices.