Amazon Raises Seller Shipping Costs As Fuel, Energy Spikes Due to Iran War

Amazon, the world’s largest retailer, has announced that it is applying a 3.5% fuel and logistics surcharge later this month due to rising oil costs as energy prices continue to spike due to the ongoing war in Iran.

The company confirmed the upcoming change on Thursday to Military.com which will affect the roughly 2 million third-party sellers from the United States and Canada who use its Fulfillment by Amazon (FBA) services to pick, package and ship items. The news follows other major companies like UPS and FedEx announcing similar surcharges, while the U.S. Postal Service is implementing its own package-related surcharges on April 26.

The surcharge translates to an average of 17 additional cents per unit for FBA. That varies based on dimensions and item sizes, per the company.

“Elevated costs in fuel and logistics have increased the cost of operating across the industry,” an Amazon spokesperson told Military.com. “We have absorbed these increases so far, but similar to other major carriers, when costs remain elevated we implement temporary surcharges to partially recover these costs.

“We will apply a 3.5% fuel and logistics-related surcharge to fulfillment fees—meaningfully lower than surcharges applied by other major carriers. We remain committed to our selling partners’ success and to maintaining broad selection and low prices for customers.”

The new surcharge will be in place “until further notice” and evaluations will continue as conditions evolve, the company added.

Military.com asked Amazon whether the surcharge is directly attributable to the Iran war among other factors including tariffs employed by the United States, or whether the surcharge could increase even more over time if oil prices continue to climb or remain stagnant. The company did not directly respond to those questions.

Strait of Hormuz Continues to Be an Issue

The closure of the Strait of Hormuz, which provides roughly 20% of the global oil supply, has become an instrumental defense for Iran as the United States and Israel continue to militarily overpower and bombard the region.

Amazon’s announcement comes as oil prices again surged Thursday, with CNBC reporting that June futures for international benchmark Brent crude rose more than 6% to $107.35 per barrel.

The stock market also took a hit on Wednesday evening after U.S. President Donald Trump’s primetime address to the American people that left many questions unanswered regarding the intended duration of the conflict and how victory could be perceived.

In January, Amazon surpassed Walmart as the world’s largest company based on sales, according to CNN, breaking Walmart’s 13-year hold. Amazon’s sales in 2025 totaled roughly $717 billion, edging out Walmart’s $713 billion in sales.