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▶ Video account attention cross-border navigation Price increase cannot be considered as cutting leeks... Price increase! ... Can Amazon's price increase be considered as cutting leeks?It is learned that recently, due to the impact of the epidemic, transportation costs are rising, inputs cannot be transported to factories, and truck transportation has slowed down to almost a standstill. The large-scale and continuous blockade caused by the epidemic in Shanghai is exacerbating supply chain problems. Meanwhile, anxiety about global supply chains is rising as cases continue to climb and the impact of lockdowns spreads. Recently, we learned that in addition to the worsening supply chain problems, the latest notice released by Amazon recently also brought "bad news" to cross-border sellers. Amazon FBA adds 5% fuel and inflation surcharge It is learned that on April 13, Amazon announced that starting from April 28, Amazon will impose a 5% fuel and inflation surcharge on US sellers using its FBA service, which will apply to all categories such as clothing, dangerous goods, small and light items. It is understood that this is the first time Amazon has imposed fuel and inflation surcharges. The main reasons for the increase are twofold: 1. The world is in a deep energy crisis amid the Russia-Ukraine conflict
After the outbreak of the Russia-Ukraine conflict, international oil prices remained high. Oil and gasoline prices soared in March and set a new record in the middle of the month. The overall energy price in March rose by 11% month-on-month. As a result, the world began to fall into an energy crisis. The sheer size of Amazon's transportation system requires it to consume massive amounts of energy, and the soaring energy prices have increased the burden on Amazon's operations. 2. Affected by the international situation, the US inflation rate continues to rise
The U.S. consumer price index rose 1.2% in March due to strong consumer demand driven by soaring energy, food and housing costs. The year-on-year inflation rate in the United States in March hit a 40-year high, exceeding 8% for the first time, and showed little sign of slowing down. In 2022, as the lockdown measures against the COVID-19 pandemic are relaxed around the world, the US economy will gradually recover, benefiting to a certain extent from low interest rates and the corresponding measures taken by the US government to deal with the impact of the pandemic. However, the current high inflation rate has obviously become a stumbling block to the rapid growth of the US economy. The US economy has not yet found a suitable solution, and economic recovery has been temporarily suspended. Affected by these factors, Amazon's profits have shrunk severely, and it is trying to offset some of its own costs by passing on fees to sellers, so it has added this additional fee. But Amazon mentioned in the email that this surcharge is not permanent, but a mechanism widely used by supply chain suppliers. In addition, an Amazon spokesperson further stated that although fuel and inflation fees were imposed this time, it was still much cheaper than other express companies, lower than UPS's 42 cents and FedEx's 49 cents. But no matter what, the price increase notice caused an uproar in the cross-border circle. Amazon logistics costs have increased again! Sellers say: We can’t bear it anymore It is learned that this is not the first time Amazon has raised shipping costs this year. Just on January 18, Amazon just changed its logistics costs. Just over 3 months and 10 days later, Amazon has increased its shipping prices again. In this regard, cross-border sellers expressed great anger: "I'm all working for Amazon. I don't play anymore." "Eat meat and don't spit out the bones. The price has risen twice this year." "If nothing unexpected happens, there will be three increases this year." "The delivery fee has just increased and it's going to increase again. FBA can't even continue. Is the era of FBM coming back?" ▲ The picture comes from the seller communication group Some sellers even said that at least Amazon had come up with a seemingly legitimate reason for the price increase this time. Some sellers also called on everyone to click the "bad review" button under the announcement released by Amazon to make a silent protest. It is also learned that as of press time, the number of sellers doing "silent protest" has exceeded one thousand. According to a report by Jungle Scout, in 2021, approximately 89% of the more than 2 million sellers on Amazon’s US site used Amazon’s FBA delivery service, and the income from third-party sellers has become an important source of revenue for Amazon. This time, Amazon increased its fuel and inflation surcharges by 5%. The passed-on costs offset part of its own costs, but it also undoubtedly added a burden to Amazon sellers. At present, it is unclear how long the US inflation will last. Cross-border sellers also need to continue to pay attention to logistics progress and make corresponding mental preparations. In addition, cross-border sellers can also appropriately allocate third-party overseas warehouses and FBA inventory within an acceptable cost range to diversify risks from the warehousing aspect. In addition to FBA, they can choose a suitable and reliable third-party overseas warehouse to balance costs.
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