New Year's bonus! Amazon wants to save sellers this money...

The report mentioned that what Amazon wants to reduce this time is an important part of the shipping cost - surcharges. Traditional express delivery companies such as UPS will charge surcharges based on customer needs, such as weekend delivery or door-to-door delivery, and even charge fuel surcharges based on the current gasoline price. According to data provided by the Wall Street Journal, the door-to-door delivery fees of FedEx and UPS are even close to $4, accounting for about 40% of the total shipping cost. Industry insiders estimate that the shipping fees that Amazon will soon pay to sellers may be about 10% lower than other express delivery companies.

Why can Amazon save so much?

As an e-commerce platform, Amazon is naturally highly dependent on logistics. Although third-party express delivery companies such as UPS have stronger transportation and delivery capabilities during peak logistics periods (such as Black Friday and Cyber ​​Monday), price is the most important factor in choosing an express delivery company for sellers.

This is why Amazon was able to carve up a lot of market share from the express delivery market, which was already monopolized by giants, after it began to build its own logistics system. According to data from the Wall Street Journal, UPS delivered nearly half of the express parcels in the United States in 2013, while Amazon only accounted for 9%. But by last year, Amazon's share of the express delivery market had exceeded 26%.

The reason why Amazon can sacrifice the profits of its logistics business is that it can provide sellers with a complete set of business services, including warehousing, sales and loans, etc., and use relatively low prices to attract sellers to use the full set of services provided by Amazon, so as to balance the profit loss caused by logistics. So after all the calculations, Amazon is still the most profitable one.

But in the short term, this news is good news for sellers. Who doesn’t like lower costs? The money saved can go directly to the sellers as profit. Besides, with Amazon’s disruption, other express delivery companies will not sit idly by. The giants’ price war will benefit us sellers, so we just need to use it.