Amazon launches FBA logistics liquidation plan, is there hope for rectification of its “fair pricing policy”?

Amazon launches FBA logistics liquidation plan, is there hope for rectification of its “fair pricing policy”?
Some sellers joked that doing business on Amazon is like fighting monsters to level up. After you defeat one monster, there will always be another one waiting for you at the intersection.

 
Indeed, the cross-border industry has been in constant turmoil recently, and many sellers are facing the siege of "monsters" such as rising costs, falling sales, and plummeting profits. While sellers are caught in the quagmire of price wars in order to clear inventory and stimulate sales, Amazon recently launched the FBA bulk liquidation plan.
 




Amazon launches FBA logistics liquidation plan


It is learned that Amazon recently launched an FBA logistics liquidation plan to help sellers deal with redundant inventory and goods returned by buyers, recover part of the cost of goods, and avoid storage fees. Currently, the plan has been officially launched in the United States, Germany, France, Spain, and Italy .
 

The main contents of the plan include the following aspects:
 

1. Amazon sends your inventory to wholesale liquidators, allowing sellers to recoup 5% to 10% of the average selling price of the item.
2. Sellers need to create a removal order through the Inventory Planning page and select the Liquidation option.
3. From   Starting June 1, 2021 , Amazon will charge an Amazon Logistics clearing fee , which will be incurred when the shipment leaves the fulfillment center.
4. If the seller submits a liquidation order before June 1st and the inventory is shipped to the liquidator on or after that date, these liquidation fees will apply.

 

The main operation process of submitting a liquidation order is as follows:


  • Open the Create Move Order form.

From the Inventory Planning page, select one or more ASINs and click Create Removal Order from the selected action drop-down menu. From the Recommended Removals report, click Start Removal Process.


  • Click Liquidate.

Select the fulfillable or non-fulfillable quantity to be liquidated. Then click "View". The seller will be prompted to confirm the order.


  • Click Confirm.

Once a clearance order is confirmed and submitted, it cannot be cancelled.


The picture comes from the Amazon Seller Forum

Many sellers have complaints about the plan. Some sellers say that recovering 5% to 10% of the sales price is tantamount to charity. Others say that the plan only applies to unsold products, and after deducting additional expenses such as introduction fees and processing fees for sold products, there is almost nothing left to recover.
 
In addition to the difficulty in clearing goods, sellers also face many challenges in shipping. Recently, due to the impact of the epidemic in Shenzhen, all trucks entering Yantian Port must be booked in advance.
 




Attention! Trucks entering Yantian Port must make reservations in advance!


It is learned that from 00:00 on May 31, Yantian International will resume accepting heavy containers, and will only accept export heavy containers with ETA-3 days (that is, within three days before the estimated arrival date of the ship). This measure will be implemented from May 31 to June 6.
 
In order to avoid traffic congestion in the surrounding society, Yantian International will implement the reservation and declaration of the entry and delivery of heavy cabinets from 00:00 on May 31 to 23:59 on June 6. Before the trailer enters the port to deliver the heavy cabinet, it must make an appointment through the Penghai Shipping Easy Pickup Mobile App or the Port Declaration App. Only after the appointment is successful can it enter the port in an orderly manner.
 
The picture comes from the Internet

It is reported that the reservation will be open at 00:01 on May 30, and customers can make reservations for heavy containers entering the port on May 31; after May 31, customers can make reservations for heavy containers entering the port on that day and the next day. Trucks without reservations will not be able to pass the reservation identification gate, and heavy containers will be rejected by the terminal.
 
In addition, all container truck drivers must queue up to enter the port according to the designated routes and lanes. For vehicles that do not follow the designated routes and lanes and do not obey instructions, Shenzhen traffic police will take the following measures:
 
For the first time, the terminal restricted vehicle operations and summoned the person in charge and the driver of the vehicle company for a talk.
The second time, punishment will be imposed in accordance with the Road Traffic Safety Law of the People's Republic of China.
The third time, the company to which the vehicle belongs will be listed as a key vehicle management unit, and multiple departments will jointly impose penalties.
 

Under the epidemic environment, goods delivered through Yantian Port will have to be strictly controlled in the future. However, amidst all the difficulties, there is also some good news. According to foreign media reports, Amazon is currently involved in a monopoly lawsuit, and its "fair pricing policy" may be rectified.
 




Amazon is involved in a monopoly lawsuit. Is there hope for rectification of its “fair pricing policy”?


Recently, Washington, D.C. Attorney General Karl Racine filed an antitrust lawsuit against Amazon, accusing it of preventing third-party sellers from offering products at lower prices on other platforms in order to maintain its monopoly position.
 

According to the investigation, until 2019, Amazon's third-party seller agreement had maintained a "price parity clause" that prohibited sellers from selling goods on other competing platforms at a lower price than on Amazon. Although the clause has been removed, Amazon has implemented another policy - the "fair pricing policy".
 
Attorney General Racine noted that Amazon has exploited its dominance in the online retail market at all costs, and its pricing policies have maximized its own profits at the expense of third-party sellers and consumers, while at the same time harming competition, stifling innovation, and illegally favoring its own interests.


Amazon's "fair pricing policy" has always caused sellers a lot of trouble. The policy strictly restricts sellers from raising prices, but does not stipulate clear pricing standards. Many sellers are forced to significantly lower their prices, and their profits are almost wiped out.
 
If Amazon loses the case, the "fair pricing policy" will likely face rectification or even removal. For sellers, it can reduce penalties for harsh evaluation criteria in product pricing, and the increasingly fierce price war may also find a breakthrough.


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