The situation with inflation in America today is much worse than many people realize. The high price of fuel is affecting every corner of our society and economy.
It’s not only that driving has become much more expensive and difficult for working families; it’s also that our largest corporations are having to charge more for their products.
For proof, look no further than Amazon, which is adding a new special surcharge for sellers, due to the high cost of gas and the impact of inflation.
This is going to hurt a lot of online sellers who use the Amazon platform; so it’s important to understand what it means.
What is the New Surcharge?
The new surcharge from Amazon is a 5% additional cost for sellers. The reason for it is officially to cover the higher cost of “fuel and inflation,” according to Amazon.
The significant growth of inflation over the past year and the past few months, in particular, has hit many people hard. Despite its record-high profits, Amazon is looking to protect its bottom line here and give shareholders good news.
The prices of various Amazon Prime products will also be going up, due to the current economic climate, according to Amazon.
Higher fuel costs affect everyone, including those who make a living online and in e-commerce.
According to company spokesman Patrick Graham, this surcharge will only hit sellers who use Amazon’s delivery services for their products.
Nonetheless, it’s clear to see rising gas prices and inflation are eventually going to make every service in our society more expensive.
Oil and gas are what moves our economy, and when the price skyrockets, so does everything else.
Amazon: "we are forced to add a 5% inflation surcharge and raise Prime prices"
Also Amazon: our profit tripled since pre-pandemic times, our founder is worth $190 billion (up $77B in the pandemic) and we just gave shareholders $10B in stock buybackshttps://t.co/iTPNT28RRj
— Dan Price (@DanPriceSeattle) April 15, 2022
Amazon is Far From Alone
It’s not like Amazon is the only company that’s responding to inflation and high fuel prices by jacking up prices.
In March, the rideshare company Lyft added a 55-cent flat fee to every ride that people take with them because of gas prices. Uber is adding 45 to 55 cents per ride for the same reason.
Shockingly, 43% of Uber drivers in a recent poll said they plan to quit or drive significantly less because the rise in fuel prices makes the job unprofitable for them now.
That’s the thing with inflation: it doesn’t only make you have to pay more for the same service; it makes those providing the service less and less incentivized to provide it without raising the price significantly.
It’s a very vicious, economy-destroying cycle.
Uber Eats, meanwhile, is adding a 35 to 45 cent surcharge to every food delivery order. That may sound like peanuts if you’re paying for one burger combo, but add up millions of meals delivered per day around the country and you are looking at a massive haul!
This is the price of high fuel: economic destruction and an inflationary spiral. The situation is not yet nightmare-level, but it’s quickly on its way there.
I see Amazon is now adding a 5% surcharge. Nothing escapes high fuel prices.
— john and casper (@johnandcasper) April 14, 2022