Cost increases hitting sellers
| Cost category | War impact | Seller effect |
|---|---|---|
| Ocean freight from Asia | Ships rerouting around Africa | +$2,000-5,000/container, 2-3 weeks delay |
| Packaging materials | Petroleum-based plastics up | +10-20% on boxes, wrap, tape |
| Warehouse energy | Electricity and heating up | Higher FBA fees likely coming |
| Last-mile delivery | Diesel up 28% | Higher carrier rates |
| Product sourcing | Commodity prices rising | Higher wholesale costs |
What Amazon sellers should do
- Stock up on inventory now before shipping costs rise further
- Adjust pricing gradually — Amazon’s algorithms penalize dramatic jumps
- Diversify suppliers — reduce dependence on Gulf-transiting routes
- Switch to lighter packaging to reduce shipping weight costs
- Consider domestic sourcing for products where possible
- Monitor FBA fee changes — Amazon may adjust storage and fulfillment fees
Opportunity for sellers
Higher prices at physical retail stores may drive more consumers to shop online for deals, potentially increasing e-commerce volume even as margins tighten.