AmazonAndy Jassy, CEO of the company, stated that the fuel surcharge and inflation surcharge were necessary to cover rising costs due to inflation and wars in Ukraine.

Jassy stated that it is impossible to absorb all of those costs while running a profitable business.Squawk Box” Interview Thursday.

Jassy explained that Amazon had tried to absorb all these costs whenever possible. However, it was becoming increasingly difficult as the pandemic progressed and Russia invaded Ukraine earlier this month. On Wednesday, AmazonU.S. third party sellers that use the shipping or storage services were charged a 5% surcharge

For sellers using Amazon Fulfillment by Amazon, the surcharge will take effect within two weeks. The merchant pays to store their inventory in Amazon warehouses, and also to use the company’s supply chains and shipping operations.

Jassy stated, “We are very conscious that sellers also have costs.” We’ll continue to look at the cost evolution and will revisit it.

Some sellers complained about the fees, noting they already had to pay it. another FBA cost increase that went into effect in January.

Amazon has incurred expenses jumpedThe company attempted to recruit and maintain enough staff to handle the increased demand at its warehouses since the beginning of the pandemic. The company was faced with staffing shortages at certain facilities and had to ship packages further, more costlyly, to areas that could receive the package.

Jassy was the Amazon founder’s successor Jeff BezosThe war in Ukraine has also been cited in July. This has caused an increase in the price of oil and metals. China’s Covid-19 virus outbreak was another reason. has disrupted tech supply chains.

Jassy explained that “I believe some of the problems happening right now China, where there are variants and being very conservative, locking down production creates some issues in getting products to us as quickly and as needed.” It’s more costly and takes longer to import products. Therefore, there are still difficulties in the supply chain.