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"There's one pit after another, and it's hard to escape from any of them." The closer it is to the peak season, the more likely sellers are to encounter various pitfalls. This year, there have been many unexpected incidents, including brand removal and sudden account sweeps. Amazon sellers have to overcome more and more pitfalls than the last. This is no less difficult for sellers than overcoming a catastrophe. In addition, Amazon FBA warehouse overflow, strikes, lost items, contract cancellations and other issues frequently occur, which has always been a concern for many sellers. Not only that, some sellers are also racking their brains to figure out how to increase their warehouse capacity. Amazon adjusts FBA seller storage capacity limits
It is learned that recently, Amazon issued an announcement that it will adjust the storage capacity limits of FBA sellers to make corresponding preparations for the peak season. The announcement shows that, in accordance with previous years' practice, the Amazon distribution center team will focus on the receiving process in September and October to ensure that sellers' products can be placed in the correct distribution center. In November and December, Amazon will focus on processing customer orders to ensure faster delivery and increase sellers' sales potential. Because Amazon manages its operations this way during peak season, most sellers find that they have more storage capacity in October and less in November . Amazon further stated that on average, the storage capacity in November is expected to provide sellers with enough storage space for the next six months of sales. In the announcement, Amazon also recommends that sellers prepare in advance to ensure that the goods can arrive before October 26, 2023. In this way, Amazon can complete the receipt on time and prepare for delivery before Black Friday. If sellers need additional capacity, they can also use Capacity Manager to request additional storage capacity from Amazon. As soon as the announcement came out, some sellers breathed a sigh of relief, no longer having to worry too much about missing out on peak season sales due to insufficient storage capacity. During the peak season, expanding storage capacity can ensure product inventory security to a certain extent and minimize a series of problems caused by traffic loss due to out-of-stock . However, many sellers refused to accept this "goodwill" application from Amazon: "In terms of efficiency and accuracy, the situation is worse now than last summer and fall. How can Amazon guarantee timeliness?" “Regardless of whether there is enough inventory, when the Amazon holiday season begins, will customers take more than six months to return their products this year?” "What do we do when we only have three weeks left and there is no confirmed storage capacity in October?" It is learned that before this announcement was issued, some sellers did increase their storage capacity a lot: "Yesterday I was still worried about insufficient storage capacity, but today I woke up and found that the storage capacity has increased by about 5 times." In this regard, a seller commented scathingly, "Why do you increase your storage capacity? It's because if you ship now, you will have to pay three times the peak season storage fee when you receive the goods. Amazon is just cunning." In addition to facing the problem of storage capacity, sellers also have to deal with the frequent Amazon warehouse explosions. Previously, due to the extreme weather in the United States, many Amazon warehouses were shut down. Currently, the recovery work is progressing slowly, but it is inevitable that the seller's goods will be affected to a certain extent. In addition, sellers also have to face the problem of further increase in logistics costs. Many logistics companies announced to impose peak season surcharges It is learned that on August 28 this year, FedEx released the 2023 peak season surcharge adjustment plan. It is understood that the new surcharges will start to increase from October 2 , and the price increase involves multiple aspects, such as additional handling surcharges, oversized package fees, residential delivery surcharges, ground unauthorized package fees, and a surcharge applicable to FedEx's land transportation economy transportation service. It can be said that the price increase will be implemented in all aspects of various logistics services . UPS's peak season surcharge will start on October 1 , and the increase in surcharges will be huge . Take domestic transportation in the United States as an example: the current attachment fee for packages that require "extra handling" is $3.50 per piece, and during the peak season this fee will increase to $6.90, an increase of nearly 100%. It is worth noting that in addition to announcing the collection plan for peak season surcharges, FedEx and UPS have both announced that they will raise parcel rates across the board starting next year . Sellers will face a series of problems brought about by further increases in logistics costs. It is understood that the rates of FedEx's domestic services in the United States and its import and export services in the United States will increase by an average of 5.9%. The freight rate adjustment range of FedEx freight is between 5.9% and 6.9% , and the specific fee will be determined according to the transportation rate table. In addition, FedEx's customs clearance service fee will also increase from January 1, 2024. Coincidentally, UPS also announced that the overall package rate will increase by 5.9% from December 26, 2023. However, like FedEx, UPS did not announce the specific charging standards, but only announced the general situation of the overall rate increase. Overall, logistics companies have raised prices one after another, and sellers’ logistics costs may increase further. FBA warehouse explosion, sudden account sweep, brand removal and other difficulties are coming one after another. As the peak season is approaching, sellers have to face a lot of storms. If sellers have any opinions on this, please leave a message in the comment area to share~
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