Amazon's inventory capacity plummeted by 60%! Are a large number of sellers fleeing to Pinduoduo?

Amazon's inventory capacity plummeted by 60%! Are a large number of sellers fleeing to Pinduoduo?

It is learned that recently, affected by the domestic interest rate cuts and the strengthening of the Federal Reserve's interest rate hike expectations, the RMB exchange rate against the US dollar continued to fall. On the morning of August 30, the latest data showed that the RMB exchange rate against the US dollar had fallen below the 6.9 mark, setting a new low.

 

 

In this regard, some experts said that considering the changes in foreign exchange supply and demand, the continued strength of the US dollar index and other factors, the RMB exchange rate will still face depreciation pressure in the short term. It is foreseeable that this will bring a considerable profit increase to cross-border sellers on US sites.

 

However, while cross-border sellers are happy about the rebound of the US dollar exchange rate, they are also troubled by a series of policy adjustments made by Amazon on the eve of the peak season. Recently, it was learned that Amazon's inventory restriction policy seems to be tightening again.

 


Amazon's inventory capacity has been halved, and sellers are suffering!




It was learned that yesterday, some sellers in the seller communication group reported that they had received an email from Amazon regarding replenishment restrictions.
 
The email mentioned that in order to welcome the holiday shopping season and ensure that all sellers using Amazon Logistics can receive, store and deliver goods in a timely manner, Amazon will adjust the replenishment restrictions. After the replenishment restrictions are updated, about 5% of Amazon sellers will be restricted from replenishing.
 
▲ The picture comes from the seller communication group

In this regard, many sellers have stated that Amazon's US site has seen a significant reduction in inventory capacity :
"Did everyone reduce the storage capacity today? From 60,000 to 30,000."
"My stock price dropped by 60% today. I had 110,000 yuan a few days ago, but now I only have over 40,000 yuan."
"Oh my god, I suddenly remembered that my storage capacity seems to have dropped by half."
 
  ▲ The picture comes from the seller communication group

As the peak season approaches, many sellers are eagerly preparing goods to show their skills. Amazon's operation of reducing inventory capacity has really caught the sellers off guard.
 
Sellers speculate that Amazon may reduce its storage capacity for the following two reasons:

1. Amazon canceled its warehouse expansion plan and sublet a large number of warehouses, resulting in limited storage capacity during the peak season;
2. Amazon laid off nearly 100,000 employees, resulting in insufficient manpower and disrupted delivery.

It is learned that although Amazon stated that only about 5% of Amazon sellers will be restricted from replenishing their stocks due to this inventory reduction operation, judging from the sellers' reactions, there are many sellers who have reduced their inventory capacity from hundreds of thousands to tens of thousands.
 
Therefore, some sellers believe that this reduction in inventory capacity will have a huge impact on many sellers . On the eve of the peak season last year, many sellers had difficulty preparing for the peak season due to shipping restrictions and could only clear their inventory at low prices . If Amazon insists on doing so this year, its financial report at the end of the year may also be affected.
 
  ▲ The picture comes from the seller communication group

Faced with the difficulties faced by the platform, Amazon sellers are increasingly expressing their desire to "leave Amazon."
 


Ready to leave Amazon? Sellers settle in new platforms!




It is learned that since Walmart relaxed its entry review, more and more sellers have joined Walmart. As of August 2022, the number of new Chinese sellers entering the Walmart market has maintained a rapid growth trend.
 
Marketplace Pulse data shows that nearly 1,000 new sellers joined Walmart Marketplace every day last week , about four times the previous number.
 
▲ Image from Marketplace Pulse

In addition to Walmart, which has been competing with Amazon, Pinduoduo, a cross-border e-commerce platform that recently started its overseas expansion, has also won the favor of many sellers.
Cross-border navigation   ▲ Video account focuses on cross-border navigation
It is learned that recently, according to sellers who have passed the Pinduoduo cross-border e-commerce platform review, the Pinduoduo cross-border e-commerce platform is expected to be officially launched on September 1. For the US market, Pinduoduo has launched a separate pre-sale promotion advertisement, requiring sellers to list products as soon as possible and provide relevant information to ensure that the products are in stock on September 1.
 
▲ The picture comes from the seller communication group

Pinduoduo's "Merchant Entry Guide" shows that the name of Pinduoduo's cross-border e-commerce platform is "Temu" . The open store types include personal stores and ordinary stores in corporate stores. Other types such as specialty stores are not yet open.
 
▲ The picture comes from the seller communication group

At present, there are thousands of people in Pinduoduo’s cross-border discussion group, most of whom are sellers from the Amazon platform.
Welcome all cross-border sellers to scan the QR code to join the group~

 

Although some sellers said that Pinduoduo might fail due to poor acclimatization, many Amazon sellers believed that since Pinduoduo could carve out a path in the domestic e-commerce arena where Taobao and JD.com have divided the world into two, its overseas expansion might also find a new way to make money.
 
We will wait and see what the future holds. In view of the recent adjustment of Amazon's warehouse capacity, we would like to remind all sellers to pay attention to changes in warehouse capacity and adjust their stocking plans in a timely manner to avoid losses.
 
How is the recent inventory situation of all sellers? Do you have any ideas to enter other platforms? Welcome to discuss in the comment area~


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