Amazon Canada Last-Mile Delivery Fees

Amazon Canada's Last-Mile Delivery Fees

In recent years, with the rapid development of e-commerce, logistics distribution has become one of the core areas of competition for e-commerce companies. As a leading global e-commerce platform, Amazon's expansion in the Canadian market also relies on efficient last-mile delivery services. Last-mile delivery refers to the final leg of the journey from the distribution center to the consumer’s doorstep. This step directly affects consumers' shopping experience and the operational efficiency of businesses. In recent years, Amazon Canada has made multiple adjustments to its last-mile delivery fees to adapt to market changes and customer demands.

At the beginning of 2025, Amazon Canada announced a significant adjustment to its last-mile delivery fees. The main change involved an increase in prices, with delivery fees for certain categories rising by about 5% to 8%. This news drew widespread attention, especially among small and medium-sized merchants who rely on Amazon's platform to sell their products. The rise in delivery costs undoubtedly increased their operating pressure. In response, Amazon stated that the price hike was mainly due to the continuous increase in logistics costs, including fluctuations in fuel prices, rising labor costs, and tight warehouse space.

It is worth noting that Amazon is not the only company facing logistics challenges. According to a report by a Canadian business magazine, since the pandemic, the global logistics industry has undergone unprecedented changes. On one hand, consumers' demand for fast delivery has surged, driving the rapid development of the express delivery industry; on the other hand, supply chain disruptions and port congestion have kept logistics costs high. In this context, Amazon had no choice but to adjust its last-mile delivery fees to maintain its service quality and ensure profit margins.

However, for small merchants who rely on Amazon's platform, this is undoubtedly a significant blow. An anonymous seller interviewed said We have already felt enormous pressure, especially for products with low profit margins. If Amazon continues to raise delivery fees, our competitiveness may be further weakened. In fact, such concerns are not isolated cases. Many small and medium-sized enterprises are in a relatively weak position when cooperating with Amazon, often unable to bear the high delivery costs, and thus forced to leave the platform or seek other sales channels.

In response to this issue, some experts suggest that Amazon should adopt more flexible pricing strategies. For example, it could formulate differentiated fee standards for businesses of different sizes or offer discounts to long-term, high-quality partners. There are also views suggesting that Amazon could try to optimize its internal operations, such as increasing automation levels and optimizing warehouse layouts, to reduce overall logistics costs. After all, only by achieving a win-win situation can it truly consolidate its leading position in the e-commerce field.

Nevertheless, Amazon insists that the current adjustment to last-mile delivery fees is necessary. In a statement, the company mentioned We are always committed to providing customers with the best shopping experience, which depends on an efficient and reliable logistics network. Although it may bring certain impacts to some partners in the short term, we believe that through continuous innovation and technological upgrades, benefits will eventually extend to all stakeholders.

Overall, Amazon Canada's adjustment to its last-mile delivery fees reflects the current state and development trends of the entire logistics industry. In the future, as technology advances and social needs change, logistics companies need to constantly explore new business models and service models to cope with increasingly complex competitive market environments. For giants like Amazon, how to balance cost control and user experience will be key to maintaining its industry leadership.