Amazon recently released a new announcement stating that it will increase the current multi-channel shipping rates in May. The new multi-channel delivery fee standard will be officially implemented from May 9, 2022. This is the result of the general price increase in the logistics industry under the epidemic, which is reflected in the multi-channel delivery fee. FBA's freight has already increased in February, but the multi-channel did not increase at that time, but only notified the change now. The price change of multi-channel freight this time is very clear, that is, the price increase. Here are the official fee standards before and after the price increase for everyone to take a look. (Click to see the full image) Comparing any two items, you can see that the price increase this time is quite large, basically an increase of more than ten percentage points. However, the official chart is still not very clear. I posted the data and made a price increase table so that you can see how much the charges for each weight segment have increased. If you pull it up like this, you can clearly see that the largest increase is even more than 20%! The increase in freight for orders of more than 5 products is generally lower, and there are even two segments (small 12 to 16 ounces and large 12 to 16 ounces) that actually reduce the cost a little. Of course, it cannot be compared with the price increase of other weight segments, so in summary, the overall increase is about 12%, which is much higher than the increase in FBA freight at the time! When we analyzed the increase in FBA at the beginning of the year, the overall increase in FBA freight was only about 5% on average. Multi-channel delivery is generally not used by many sellers. It is only used when they need to temporarily use FBA inventory to ship goods to their own delivery links, or to ship goods to stores on other platforms. Given the low overall frequency of use, Amazon can only increase its efforts in adjusting the charges for a single service in order to spread the increased logistics costs. Although sellers who only do FBA don’t have to worry about the cost of multi-channel distribution, Amazon’s overall platform traffic has reached a bottleneck. Many sellers are thinking about expanding their sales channels, such as Walmart, eBay, Etsy, etc., with multiple platforms and multiple channels. When selling on multiple platforms, they will encounter the situation where they need to sell inventory from Amazon through multiple channels. The price increase will be felt by sellers who develop multiple platforms. Even for Amazon orders and Amazon delivery, the delivery fees are actually rising. Some sellers even raised the delivery fee from about $3 to $6. Sellers were forced to apply to Amazon to remeasure the packages to see why the price has increased so much. In fact, yesterday’s tweet explained the root cause of the recent price increase - oil is too expensive. Yesterday, the oil cost was four or five dollars, and today it has risen to more than $6.
The price really changes every day. As long as there is no resolution to the war between Russia and Ukraine, oil prices will probably remain at this high level. However, the good news as mentioned yesterday is that the freight rates for sea transportation are expected to be reduced under the intervention of the US government to squeeze out the premium, so sellers can at least breathe a sigh of relief. |
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