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Yesterday, Amazon Global Store officially announced that this year's Amazon Prime Day will be held globally on June 21 and 22. This year's Prime Day event will cover 20 Amazon global sites. During the event, global third-party sellers on Amazon will bring more than one million super value discounts to global Prime members. After going through many tests in the platform and market environment in the first half of the year, cross-border sellers finally received news of the scheduled big promotion. However, the days before the big promotion are always tormenting. Sellers are not only busy making various operation plans and stocking plans, but also have to deal with multiple problems such as soaring ACOs, declining orders, rising freight costs, and warehouse explosions. It is not easy.
Sellers’ current situation before the big promotion: ACOs soared, but orders were low
Recently, many sellers reported that the traffic of Amazon US site has been on a downward trend since the end of May, and the conversion rate has not fluctuated much, but the advertising ACOS has begun to soar. In this regard, sellers speculate that it is because Amazon Prime Day is approaching and platform buyers only add to cart but do not pay. ▲ The picture comes from Zhiwubuyan It was found that the sales volume of sellers has declined in recent days, and the surge in ACOS seems to be a common problem. In the seller group, many sellers can be seen complaining about this phenomenon. ▲ The picture comes from the seller communication group "The order volume is obviously not as good as before, and the ACOs and CPCs have also changed, but there are few similar products with significant price cuts." "There was a strong sense of the same in May. Compared with April, sales fell 20% and advertising costs increased 20%." "The traffic on the US site has dropped drastically, the advertising Acos has been off the charts, and the top sellers are slashing prices like crazy." ▲ The picture comes from the seller communication group For the above situation, some sellers analyzed that there may be the following two reasons: 1. Before the big promotion, the buyer traffic decreases, and there are situations where people only add items to cart but do not place orders. 2. Due to Amazon's policy of limiting storage capacity, many sellers have reduced prices to clear inventory and increased advertising efforts in preparation for the peak season. The decline in orders and inflated advertising prices have made many sellers nervous, but fortunately, Membership Day is approaching, and sellers must remain calm, stabilize their rankings during this period, protect their stores and links, prevent competitors from making spoofs, and wait for the big orders on Membership Day. In addition to the unsatisfactory order volume, in June, the FBA delivery fee adjustment policies of multiple Amazon sites will take effect one after another, and sellers will soon face a new round of delivery fee increases. US FBA delivery fee adjustment officially takes effect in June On March 18 this year, Amazon US announced that the "delivery fee adjustment plan" will take effect on June 1, with an average increase of 2-3% in delivery fees. The changes to core Amazon Logistics fulfillment fees (except for "Apparel" products) are as shown in the table below. The new fulfillment fees will take effect on June 1, 2021. If the product is ordered before June 1, 2021, but shipped on or after June 1, 2021, it will be charged according to the new Amazon Logistics fulfillment fee standards. In June, Amazon's US site officially implemented new logistics and delivery charging standards. As a result, many US sellers reported that FBA delivery fees have suddenly increased a lot recently. Coupled with the high advertising costs, operating costs have been forced to rise again. ▲ The picture comes from the seller communication group As can be seen from the table, this fee change has cancelled the shipping packaging weight, while raising the charging standards and adding weight classification levels, so most sellers will face an increase in delivery fees. Freight transportation is always a headache for sellers. In addition to the increase in FBA delivery fees, the United States Postal Service has also announced that it will increase service prices. USPS raises shipping rates, German warehouses overwhelmed It is learned that the United States Postal Service (USPS) submitted a price increase request last Friday, raising the prices of its leading products and services by approximately 6.9%. The new price increase plan will take effect on August 29, 2021. The specific changes in freight are as follows: It is reported that Flats Single-Piece prices will increase from $1.00 to $1.16 , a 16% increase, and Media Mail proposal prices will increase from $3.71 to $4.11, a 10.8% increase. For small and medium-sized business sellers who rely on USPS's cheaper shipping services to fulfill orders, these changes will significantly affect their profitability. This will further enable large sellers and large online retailers (such as Amazon) to take the lead in the market and put small and medium-sized businesses at a financial disadvantage. In addition, sellers should also note that some warehouses in Europe are currently overwhelmed and the speed of signing for and putting goods on the shelves is slow, which will affect the subsequent collection of goods. ▲ The picture comes from Zhiwubuyan A freight forwarder has issued a notice that currently UPS and DPD are refusing to accept parcels from the German warehouse 44145, which means that the parcels from the warehouse cannot be delivered normally and the cargo pickup time will be delayed in the near future. ▲ The picture comes from the Internet
Perhaps all of the above difficulties are tests that Amazon puts on sellers before the big promotion, so sellers must regain their confidence during this period and be prepared for the peak season. After passing many levels, they will naturally reap the rewards of their hard work.
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