The former best seller, which has been ranked No. 1 on Amazon for many years, was reported to be laying off employees and liquidating!

The former best seller, which has been ranked No. 1 on Amazon for many years, was reported to be laying off employees and liquidating!

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It is learned that recently, Amazon US announced that Amazon will launch holiday peak delivery fees from October 15, 2022 to January 14, 2023. Third-party sellers using Amazon Logistics Service (FBA) will have to pay 35 cents for each item sold in the United States or Canada.

 

 

Amazon said that due to the high concentration of freight volume during the holiday sales peak season, the company's order processing and delivery costs are facing tremendous pressure. After careful consideration, the company decided to increase holiday logistics surcharges for the first time.

 

It is learned that holiday logistics surcharges are not uncommon. Before Amazon announced the price increase, major logistics operators such as FedEx and USPS also charged "peak" surcharges during the holiday shopping season. In early August this year, USPS (United States Postal Service) announced a temporary price increase during the holiday season to help it cope with additional processing costs.

 

But this is undoubtedly a blow to sellers who are already suffering from declining order volumes and shrinking profits.

 

In this turbulent year of 2022, in addition to the continued rise in logistics costs, the recent news of layoffs and liquidations by Pharmapacks, once the TOP1 seller on Amazon's US site, has also attracted much attention from sellers.

 


The former best-seller was revealed to be laying off employees and liquidating!



 
It is learned that according to foreign media reports, Packageable, the parent company of Pharmapacks, which sells well on Amazon's US site, is laying off employees and preparing for liquidation.
 
Packabl has laid off 138 employees so far, or about 20% of its workforce, with the remaining 372 employees expected to be let go "once their individual redundancy responsibilities are completed."
 
 
Founded in 2010, Pharmapacks mainly sells medicines, personal care products, beauty products, household products, etc. It started as a physical pharmacy in the Bronx, New York, and later switched to online sales, with presence on e-commerce platforms such as Amazon, eBay, Target, and Walmart.
 
Since 2018, Pharmapacks has been ranked first in the ranking of third-party sellers on Amazon's US site. Marketplace Pulse data shows that as of September last year, Pharmapacks was still the largest Amazon seller in the United States based on the number of product reviews received. Its parent company Packageable also stated in an investor report that the company's sales will exceed US$ 1.3 billion in 2024.
 
Thanks to the development of internal system software, naturally advantageous categories, and emphasis on buyer experience, Pharmapacks has achieved great sales results on Amazon year after year. Its grassroots resale starting model has also been imitated by many cross-border sellers.
 
But a few days ago, this once-seller in the United States collapsed.
 
In this regard, we learned that the seeds of Pharmapack's departure were actually planted as early as September last year.
 


Faced with multiple blows, the big seller left the market with regret!



 
It is learned that in September 2021, Pharmapacks' parent company Packageable announced plans to merge with special purpose acquisition company Highland Transcend Partners I Corp. and go public .
 
But after that, as the boost from the pandemic waned, the US SPAC (special purpose acquisition company) market gradually lost investors’ attention, and transactions at all stages began to shrink significantly. In July this year, the number of SPAC IPOs was “zeroed” for the first time in five years.
 
Affected by the cooling of the SPAC market and the macroeconomic depression, in March this year, Packageable canceled its SPAC listing transaction due to "unfavorable market conditions."
 
In a recent layoff and liquidation notice, Packable also stated that due to the failure to obtain new financing and the difficulty in continuing operations, the company is preparing to liquidate all remaining collateral and close its business.
 
 
We also learned that in addition to the failure of financing and listing, supply chain problems are also one of the important reasons why Packable's development momentum has taken a sharp turn for the worse.
 
Due to supply chain restrictions resulting in large inventory shortages and delayed purchase orders, Packageable's revenue in 2021 slowed significantly from the double-digit growth in 2020.
 
Although Packable's business was still able to achieve some growth by early 2022, with its average daily revenue in January increasing from $1.5 million in the fourth quarter of 2021 to an estimated $1.6 million, it is an indisputable fact that the supply chain crisis has had a huge impact on Packable's business.
 
Even a large company like Pharmapacks is plagued by supply chain constraints, not to mention other sellers in the US market.
 
As time is about to enter September, the footsteps of the traditional peak season are getting closer. Under the recent difficulties of plummeting traffic and skyrocketing costs, the upcoming Halloween, Black Friday, Cyber ​​Monday, Christmas and other festivals with strong consumer power are undoubtedly the key turning points for sellers to break through the sales maze.
 
At present, due to the continuous increase in import volume and the shortage of port labor, the congestion of US ports has not been effectively alleviated. In order to avoid the situation of insufficient supply during the peak season, sellers are reminded to evaluate the efficiency of shipping channels and adjust the logistics network in time to avoid missing the opportunity of big promotion due to cargo transportation problems.
 
So, faced with the repeated bombardment of increased delivery fees and the risk of supply chain restrictions, how can cross-border sellers in the US market reduce costs and increase efficiency while ensuring logistics timeliness?
 
Lianyu Logistics US FBA Ocean Shipping-Taishan West is the best choice for sellers who are in urgent need of breaking through the current US ocean shipping difficulties.
 
Four major advantages protect US sellers from cross-border expansion and eliminate logistics pain points:
 

 

1. Full chain optimization
We have high-quality shipping companies and routes to ensure the stability of weekly services and have sailing schedules every week;
The fastest voyage is 13 natural days after the ship departs; the container has priority in berthing, picking up containers, unpacking containers, and delivery.
 
2. Overall stable timeliness
The signing time for Taishan West is 18-20 working days, and the overall timeliness is comparable to that of the Clippers.
 
3. Superb service
Reducing costs and increasing efficiency, the Taishan series saves sellers nearly half of the shipping costs;
Inspection service included. We have a professional risk control team to strictly control the customs clearance process, giving sellers a greater sense of security;
The latest cut-off time is Monday, which gives sellers more time to prepare goods compared to the Saturday cut-off time for express ships in South China.
 
4. Dedicated quality control officer
In order to make the Taishan series the best among ordinary ships, Lianyu Logistics has set up a quality control officer for it, who will monitor the operation process of the Taishan series throughout the whole process to ensure that the product's shipping space, receipt time, accuracy rate and other data are in normal status, so that the goods can travel safely.

Don't go! There are benefits!
Benefit 1: If the cumulative order amount reaches 88CBM between August 5th and September 5th , you will receive a 3-day and 2-night "Taishan Trip" travel voucher (about ¥2,000/voucher). Only the first three people are eligible, first come first served!
 
Benefit 2: If you place an order of 10CBM or more between August 5th and September 5th , you will receive a box of 6 bottles of "Taishan Original Beer" for free. There is no limit on the number of people , and you will get it for free if you place an order of 10CBM or more!


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