Sellers accuse Amazon of unlimited FBA warehouses, squeezing out profits! What is the truth?

According to the latest data from MarketPlace Pulse, in 2022, sellers' operating costs on Amazon accounted for more than 50% of sales revenue , 10% higher than five years ago. Among them, according to the profit and loss statements provided by the seller sample, Amazon's logistics costs (including storage fees and other fees) accounted for 20-35% of it .

It can be seen that the increasing Amazon FBA logistics costs have become the biggest obstacle to the sellers’ profits.

Just when sellers were still worrying about whether to ease profit pressure by raising prices, Amazon once again posed a shipping problem.

It is learned that a few days ago, a seller reported on the forum that Amazon's incoming goods seem to be divided into warehouses without restrictions in recent days. Forty products are divided into four warehouses, and there are almost no shipments that are not divided into warehouses.

▲ The picture comes from Zhiwubuyan

Coincidentally, in the seller communication group, many sellers have also initiated discussions about the seriousness of FBA's forced warehouse division :

“Not only are they divided into warehouses, but sometimes they are even assigned to remote warehouses, which directly increases costs.”

"In the past, I created multiple shipments or changed the shipping address and hardly divided the warehouses. Recently, no matter what I did, they were divided into warehouses."

"Standard parts are also separated into warehouses! This has never happened before!"

▲ The picture comes from the seller communication group

It is understood that this is not the first time that Amazon has encountered serious problems with warehouse distribution.

During the peak seasons of previous years, Amazon often increased warehouse utilization by splitting warehouses to alleviate transportation problems such as warehouse overflow and slow shelf loading, as warehouses were always under high pressure. However, since the new Amazon shipment system came into effect , sellers have found that even in the off-season, shipments are often split by default by Amazon.

For sellers, warehouse division is accompanied by many negative effects: in addition to increasing the first-leg freight cost , product operations also face greater instability risks due to the different transportation conditions of different goods . However, if sellers want to keep the goods in warehouses, they need to pay a warehouse consolidation fee or lock the warehouse, and the warehouse consolidation fee is also a considerable fee .

Based on this, most sellers speculate that the unlimited warehouse division phenomenon that has re-emerged this time is actually Amazon increasing the sellers' logistics costs in disguise in order to shift its cost pressure.

Judging from the losses in Amazon’s 2022 financial report and the various cost control policies it has adopted, this speculation is not groundless.

In the past year, Amazon has taken a number of measures to control costs. Among them, the most concerned by sellers is the notice of changes in sales commissions and logistics costs issued by Amazon on November 18, 2022. Logistics fees, warehousing fees and other costs will increase after the notice takes effect, further squeezing sellers' profit margins.

Recently, many sellers reported that they received a mass email stating that Amazon will impose a surcharge on warehouse utilization , which is part of this notice.

▲ The picture comes from Amazon announcement

It is worth noting that with the rapid development of cross-border e-commerce, the continuous increase in logistics costs has become a trend , and it is not just the opinion of Amazon FBA.

It is understood that since the beginning of this year, not only have international parcel carriers such as USPS increased international shipping rates, but Japan's two major logistics giants, Sagawa and Kuroneko, have also announced that freight rates will soon increase.

For sellers on the Japanese site, the increase in transportation costs, strict customs inspections, and high reverse calculation costs are like a heavy pressure on the profits of sellers on the Japanese site. In view of the uneven quality of the current cross-border logistics industry, cross-border sellers need to be cautious in choosing logistics channels while considering cost reduction, efficiency improvement, and cost savings.

Qianhai LeDi is the key to satisfying all the conditions for removing these "mantra stickers" on Wuzhi Mountain.

Qianhai LeDi has always been focusing on being the "new generation of Japan's powerful air and sea dealer" and continuously strengthening every link of the Japan dedicated line. After years of hard work, LeDi has its own customs clearance agency in Japan, its own overseas warehouse in Japan, and its own local delivery team .

At this juncture of price increase, Qianhai LeDi continues to make big concessions, targeting sellers' pain points, and has launched the "air freight reverse customs clearance, 20% fixed declaration" product, which effectively helps sellers reduce costs and increase efficiency in a compliant and reasonable manner.

Air freight reverse customs clearance, as low as 20% settlement

Significant time-efficiency advantage and no safety risks: This business actively participates in the reverse calculation required by the Japanese customs. Sellers can label the goods themselves before shipment, and the goods can be delivered to the Amazon warehouse as soon as they are picked up in Japan;

Affordable prices and compliance bring lower benefits: sellers only need to declare and settle at a ratio of about 20% of the sales price , so that the cost of tariffs returns to the level before the reverse calculation, which is even more affordable than the reverse calculation!

Send your own parcel for more discount

Since Le Di has its own customs clearance agency in Japan, its own overseas warehouse in Japan, and its own local delivery team, the price of Le Di Japan's self-delivered small parcels is much more favorable than that of Sagawa Black Cat, which is about to increase in price.

First-hand account, not affected by price increase

After years of deep cultivation of "localization layout" by Qianhai Letian, sellers can also have first-hand accounts through Qianhai Letian, and use channels such as Sagawa, Kuromao, and Nippon Post at more favorable prices. At this stage, it can basically achieve "average 3-4 days for online pickup" .

• The first weight of the small package of Zuochuan is 34 yuan/kg, and the additional weight is 4 yuan/kg. If the quantity is large, you can get a better discount;
• The price of MINI parcels such as Black Cat/Japan Post is as low as 14.5 yuan/ticket!
• There are many more cross-border Japanese parcel discounts!