Andy Jassy, CEO of Amazon Web Services, speaks at the CERAWeek by IHS Markit 2019 conference in Houston, Texas, on March 11, 2019.
Aaron M. Sprecher | Bloomberg | beautiful pictures
Amazon CEO Andy Jassy said the company needed more fuel and inflation surcharges to deal with rising costs related to inflation, the coronavirus pandemic and the war in Ukraine.
Jassy told CNBC’s Andrew Ross Sorkin: “At a certain point, you just can’t keep absorbing all those costs and running an economic business.Box of Squaw“interview on Thursday.
Jassy said Amazon tried to bear all those costs whenever possible, but it became increasingly unacceptable as the pandemic continued and after Russia invaded Ukraine earlier this year. . On Wednesday, Amazon has imposed a 5% fee on US third-party sellers using their shipping and warehousing services.
The surcharge will go into effect in approximately two weeks for sellers using Amazon’s Amazon Fulfillment program. Sellers pay to have their inventory stored in Amazon warehouses and take advantage of the company’s supply chain and shipping operations.
“We know very well that sellers also have costs,” says Jassy. “We will continue to look at how it costs to develop and revisit.”
Some sellers expressed disappointment about the fee, noting that they were absorbed another FBA cost increase effective January 1.
The cost of Amazon has jumped Since the start of the pandemic, the company has managed to hire and retain enough employees to meet demand in its warehouse. Faced with staffing shortages at some facilities, companies often have to send packages longer and more expensively to locations with enough people to receive them.
Jassy, the successor to the founder of Amazon Jeff Bezos in July also pointed to the war in Ukraine, which has driven up oil and metals prices, and China’s latest Covid-19 outbreak, disrupted the technology supply chain.
Jassy said: “I think some problems are happening right now in China, because there are many variations and they are being very cautious and the production lockdown will create some problems in getting the product quickly. as we need.” “It’s still more expensive and time-consuming to bring products into the country. So there are still supply chain challenges.”
