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

The ongoing conflict in Iran has significantly disrupted global oil markets, leading to a noticeable increase in gas prices within the U.S. Prices have surged considerably. In response to rising transportation costs, Amazon has introduced a 3.5% fuel surcharge for sellers utilizing its distribution network. This new policy could introduce substantial additional expenses for many merchants who depend on the e-commerce giant to distribute their products.

Amazon informed JS that the surcharge would remain in effect indefinitely, though the company plans to reassess the policy as market conditions change. This development was first reported by Bloomberg.

According to a company spokesperson, “Increased fuel and logistics costs have heightened operating expenses across the industry. We have absorbed these costs so far, but like other major carriers, we implement temporary surcharges to recover part of these elevated expenses when they persist.” The spokesperson further stated that Amazon’s surcharge is “substantially lower than those charged by other major carriers.”

Set to commence on April 17, the new policy will affect sellers using Amazon’s Fulfillment by Amazon (FBA) service, as Bloomberg notes. FBA allows businesses to ship their products to Amazon’s warehouses for packaging and delivery to customers. While Amazon does not publicly disclose the number of merchants using FBA, it supports the majority of third-party sales on the platform.

Amazon first introduced such a surcharge in 2022, coinciding with the last instance of crude oil prices exceeding $100 per barrel. At that time, the Russian invasion of Ukraine caused turmoil in energy markets. Currently, the conflict in Iran, instigated by the Trump administration and the Israeli government’s assassination of Iran’s Supreme Leader, has similarly disrupted markets.

Iran’s strategic position along the northern border of the Strait of Hormuz—a critical channel for global oil transport, where about 20% of the world’s oil supply passes—has led the country to attempt to obstruct shipping lanes there, a move that has significantly affected energy prices worldwide.