The out-of-stock rate is as high as 43%! This product is in serious shortage and the search volume has skyrocketed!

The out-of-stock rate is as high as 43%! This product is in serious shortage and the search volume has skyrocketed!


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Recently, Amazon confirmed that its employees were bribed to leak data, helping third-party sellers circumvent platform supervision and gain a competitive advantage. So far, two defendants have pleaded guilty to bribery, and the amount involved is as high as millions of dollars.
 
 
In the plea agreement, the two defendants admitted that they conspired to bribe to obtain Amazon's confidential business information, to restore suspended third-party sellers and listings on the platform to circumvent Amazon's restrictions on certain products, and to manipulate customer reviews, etc. One of the defendants admitted to conspiracy to commit wire fraud, with a maximum sentence of 20 years in prison.
 
In recent years, Amazon has never stopped its efforts to promote compliant operations . In addition to strictly restricting the manipulation of reviews, it also hates the practice of "price gouging."
 
In this regard, we also learned that in response to the recent severe shortage of milk powder in the United States, Amazon has also issued an announcement strictly prohibiting price gouging.
 


There is a serious shortage of milk powder in the United States, and Amazon is cracking down on price gouging!




It is learned that there has been a serious shortage of infant formula in the US market recently. Last week, the average out-of-stock rate of infant formula reached 43% .
 
Google Trends data also shows that searches for infant formula began to rise sharply on May 7 and reached a peak on May 10, and it is still a popular search keyword.
 
 
A tree a thousand feet high has its roots, a river a thousand miles long has its source. It is reported that the recent severe shortage of infant formula in the United States is mainly due to the following two reasons:

1. Insufficient supply
As the epidemic broke out, supply chain congestion continued, and many related factories in the United States stopped working, which directly led to the problem of insufficient supply. In addition, the epidemic also made people have the habit of hoarding goods, making it difficult for manufacturers to plan production and estimate the market size.
 
2. Highly concentrated market
The US infant formula market is highly concentrated, with four companies , Mead Johnson, Nestle, Perrigo and Abbott Nutrition, accounting for nearly 90% of the market. This has led to a ripple effect. Recently, the US recalled a large number of formulas produced by Abbott Nutrition, which directly exacerbated the shortage of formula.


We also learned that as the shortage of infant formula becomes increasingly serious across the United States, Americans are searching in large numbers for information on how to purchase infant formula from other countries , and the U.S. government has stepped up its response to this crisis situation.
 
Yesterday, Democrats in the U.S. House of Representatives announced a $28 million emergency spending proposal to address the shortage of infant formula. The U.S. Food and Drug Administration (FDA) also reached an urgent agreement with Abbott to restart production at its Sturgis plant.
 
In addition, the U.S. Food and Drug Administration also mentioned that in order to ease the situation, it will announce a plan next week to allow the import of formula milk produced overseas. The United States will relax the import standards for infant milk powder and allow more supply from overseas markets.
 
Nestle SA, the world's largest food company, has seen business opportunities in the milk powder shortage crisis in the United States and said it is expediting air shipments of infant formula milk powder from Europe to the United States. Many sellers have also begun preparing to export milk powder to the United States.
 
To this end, Amazon US also issued an announcement stating that due to the shortage of infant formula in the United States, Amazon will crack down on sellers' price gouging and recommend that sellers limit purchases of infant formula.
 
 
It is understood that although the shortage of milk powder is so serious that it may take the United States several months to resolve it, it is still difficult for Chinese sellers to export infant milk powder to the United States due to supply chain congestion and strict quality audits .
 
In addition to the problem of milk powder shortage in the United States, news of frequent failures of logistics companies has also attracted much attention from cross-border sellers.
 
Recently, we learned that another logistics company was posted with a banner, but this time it was not the seller who posted the banner, but a freight forwarder in the same industry.
 

Another freight forwarder was put up with a banner, suspected to be due to the customs inspection taking too long




It was learned that a seller revealed that a banner with the words "xx logistics is an unscrupulous businessman" was posted on the door of the Bantian branch of a large logistics company (hereinafter referred to as "A") recently.
 
Different from the previously reported incident where a freight forwarding company absconded with the money and was put up with banners, the protagonist of the banner this time was a freight forwarder who was also engaged in logistics (hereinafter referred to as "B").
 
 
According to the statement released by Logistics A, the incident was caused by the fact that the goods transported by freight forwarder B to Europe through Logistics A encountered customs inspection for more than a month on the way . The freight forwarder B was dissatisfied with the release time waiting for customs processing and believed that Logistics A did not actively solve the problem, so he posted a banner at the door of Logistics A's Bantian branch.
 
Currently, Company A intends to use legal means to resolve the issue.
 
 
It is believed that compared with previous freight forwarder absconding incidents, the situation in this incident has a greater chance of being resolved.
 
However, with the current domestic epidemic resurgence and the recovery of offline consumption abroad, long cargo transportation time or problems encountered in the middle of the journey will result in considerable losses for both logistics companies and cross-border sellers.
 
The current market situation is grim, and logistics companies frequently go bankrupt. We would like to remind all sellers that when negotiating cooperation with logistics companies, they need to fully understand the company's strength, scale and qualifications, consider its business capabilities, sign a contract with clear safety clauses, and do not blindly pursue low prices.
 
In addition, it is also learned that the Ningbo Municipal Market Supervision Bureau recently issued a notice to deploy a six-month special rectification campaign on enterprise-related charges across the city starting from mid-May. The rectification scope includes port charges, highway charges and expressway charges.
 
 
It is reported that the inspection period of this operation is the charging behavior since January 1, 2020.

This means that any behavior of shipping companies, logistics providers, etc. that drives up freight rates will be investigated and dealt with, which is great news for sellers.
 
What do you want to say about this? Welcome to discuss in the comment area~

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