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I wonder if you have experienced the joy of a surge in sales during this year's peak season. According to Adobe statistics, online spending by consumers on Cyber Monday this year will be between $10.8 billion and $12.7 billion , a year-on-year increase of 15% to 35%. At this rate, sellers should have made a lot of money this year. However, as sales increased, logistics and back-end delivery became a problem. Affected by the epidemic, logistics and freight are facing tremendous pressure. Recently, LAX airport is paralyzed, freight manpower is insufficient, ports are blocked, warehouse space is scarce, and high freight rates and other problems have frequently emerged. . . In terms of delivery, Michael Brown, partner in Kearney's consumer products and retail business, said that currently, compared with the early days of the pandemic, the main problem facing sellers lies in warehouses - whether they can pick and select goods more quickly and deliver them safely and quickly to shippers and buyers. According to ShipMatrix data, the on-time delivery rates of the three major U.S. parcel transport companies were all above 95% from November 1 to November 21. From November 1 to 14, the on-time delivery rates were: FedEx 96.5%, UPS 97.3%, USPS 96.6%. From November 15 to 21, the on-time delivery rates were: FedEx 96.6%, UPS 96.9%, USPS 95.4%. However, Salesforce said that it expects holiday packages shipped from mid-November to December to eventually exceed 5% of global shipping capacity, with 700 million packages at risk of being delayed. If packages need to be delivered late, sellers need to communicate with buyers to avoid returns and bad reviews. On the other hand, the peak season has not yet ended, and some sellers have begun planning to prepare goods for 2021. Recently, a seller reported that when replenishing the stock this year, it was unable to be replenished many times due to warehouse overflow. After consulting the customer service, it was found that products that were put into the warehouse after December 1 were counted as 2021 products. . . The seller was very confused about this.
However, according to the holiday logistics notice released by Amazon, the 2021 inventory must be delivered to the Amazon operation center no earlier than December 17, which means that the goods before that date will be received normally according to the sales of 2020. As for the failure of some goods to enter the warehouse normally, it may be due to the warehouse explosion. In view of the various issues currently facing freight, sellers who need to replenish stock in the near future are advised to communicate with logistics service providers in advance and make arrangements as soon as possible. For sellers on the European site, what they need to pay attention to in terms of logistics is the new news about Amazon FBA’s withdrawal from the EU. Recently, Amazon released some important Amazon FBA Brexit updates and some other information, which can help sellers transition their business through the upcoming changes on January 1st. - Key Amazon FBA BREXIT updates and dates of changes
The first Amazon FBA BREXIT updates to note are: Inventory removal orders for cross-border inventory were stopped on November 14. All removal orders created before November 14th will be processed. - Pan-European FBA inventory transfers will cease on December 18.
Cross-border fulfillment through Amazon FBA EFN will end between December 21st and 28th. This means that if you do nothing, UK sellers will stop attracting sales to EU buyers and vice versa. From these dates, if you want to continue selling cross-border, you will need to send inventory to both UK and EU fulfillment centers to maintain stock levels and sales. - Amazon Partnered Carrier Program Cross-Border Shipping Promotion
To support Amazon Logistics providers in managing the upcoming changes and entry across new customs borders, Amazon has launched a cross-border shipping promotion, offering an average saving of 30-65% on shipping costs when shipping goods between the UK and the EU by using the Amazon Partner Carrier Program. UK to EU and EU to UK rates will be reduced to bring them in line with local PCP rates (e.g. UK to Germany rates will be the same as shipping from a UK address to a UK fulfilment centre). This promotion will run from 19 November to 18 December and will allow you to send stock to the UK or EU at a lower cost before the EU-UK customs border is implemented on 1 January 2021. Amazon is working to ensure the Amazon Partnered Carrier Program can continue to support all existing shipping corridors in 2021, including those impacted by Brexit, and will provide more information in December 2020.
- Temporary Pan-European FBA Eligibility Criteria Relaxation
Amazon is temporarily updating its Pan-European FBA eligibility criteria by removing the requirement for a valid offer in the UK. From December 18, 2020, products will continue to be eligible for Pan-European FBA even if there is no valid offer in the UK. This is a temporary measure to support our sellers as they adjust to the customs borders that will be implemented from January 1, 2021. Amazon will reinstate the UK quote requirement in the near future and we recommend that sellers maintain their UK quotes by sending inventory directly to UK fulfilment centres and provide at least a 60-day notice period before reinstating the UK quote requirement. If you still have questions, sellers can go to Amazon's Brexit Help page to get the latest information on all Amazon FBA BREXIT updates and other changes. Amazon also provides a Brexit selling partner guide to support sellers in their preparations. The above is the important news for today. It is recommended that sellers pay more attention to the logistics and delivery information which changes frequently in the near future, so as to flexibly adjust the delivery and sales plans and seize the last moment of the peak season to boost sales.
(Source: Cross-border Cloud Classroom)
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