Amazon delivery fees will start to increase starting tomorrow!

As the peak season approaches, Amazon's delivery and storage fees are going to rise again, pushing up the operating costs of cross-border sellers. At this time, a group of sellers did not raise prices, but instead kept selling at ultra-low prices. Their peers said frankly: "They are all doing charity, there is no profit at all." In the context of fierce competition, profit is definitely the most important keyword for cross-border people this year.

Amazon delivery fees have increased, will sellers raise prices?

Tomorrow is October 15th, the day when Amazon’s peak season delivery fees begin to increase.

Amazon reminds sellers that it will charge peak holiday delivery fees for all multi-channel delivery orders in the United States and Canada from October 15 to January 14. Sellers using FBA must pay an additional $0.35 per item.

The specific fee increases vary by item size, category and weight, and the range of increases is not small compared to off-peak delivery fees.

(Except for clothing, major Amazon logistics delivery fee changes)

Amazon has always charged additional delivery fees during the peak season. Not only delivery fees, but also storage fees during the peak season will increase. Regarding the reason for the delivery price increase, the platform said that due to the high concentration of shipments during the year-end sales peak season, the entire industry will face the pressure of increasing logistics and storage costs.

In fact, during the peak season every year, not only Amazon will increase delivery fees, but also the United States Postal Service, FedEx, etc. No matter which channel cross-border sellers use, their operating costs will increase.

As the price increase date approaches, Amazon sellers suddenly realize: “It turns out that the delivery fee is going to increase again. The profit of some products is less than 0.35 cents. Can I raise the price?” Then a colleague pointed out: “Look at the prices of competitors. Do you dare to raise the price?”

According to feedback from multiple sellers, delivery fees are about to rise, but everyone is still competing at low prices. An old seller said that he found that his competitors were selling at a 70% discount, and soon rushed to the top 2 of the small category. This unprofitable way of playing is doomed to not last long. Another seller said that there are indeed many low-price discounts recently. A product on sale is 48 US dollars, and inexplicably a similar product is sold at 32 US dollars with a 10% discount.

As old sellers compete, new sellers use ruthless tactics to gain a foothold. Sellers in multiple categories have reported that new sellers are generally involuntarily selling at low prices. One seller was helpless: "In my category, new sellers are lowering prices by 8-15 US dollars and selling at a 10% discount. I really don't know how they make money?"

Under the low-price involution, many sellers have negative profits. On the one hand, they are losing money to do charity for European and American consumers, and on the other hand, they complain that they are not making money. With the intensification of inflation and the downgrade of consumption in Europe and the United States, the profits of cross-border sellers have generally declined this year.

Selling for more than 10 billion yuan resulted in a loss of nearly 200 million yuan, and profits became a shadow for sellers

Whether it is the top sellers such as Tongtuo and Zebao, or many small and medium-sized sellers, negative profits are not uncommon. With sales of more than one billion in half a year, they found that they still had a loss of nearly 200 million when they did the accounting. This seems to have become an indelible shadow for them.

The semiannual report released by Tongtuo Technology's parent company Huading Holdings showed that the cross-border e-commerce business segment achieved operating income of 1.679 billion yuan. However, with sales of 1.6 billion yuan, the net profit was -195 million yuan, a year-on-year decrease of 353.75%.

The situations of hot-selling apps like Zebao, Youkeshu and Jiazhilian are similar.

In the first half of this year, Zebao's revenue was 645 million yuan, and its total profit was -20.4873 million yuan, a decrease of 161 million yuan from the same period last year; Youkeshu's parent company Tianze Information achieved revenue of 423 million yuan and a net profit of -83.0483 million yuan in the first half of the year, and realized a net profit attributable to shareholders of listed companies of -83.8337 million yuan; Jiazhilian's revenue in the first half of the year was 200 million yuan, and the net profit attributable to the parent company's owners was -22.8893 million yuan, a year-on-year decrease of 689.01%.

Large sellers can easily achieve sales of hundreds of millions, but many are struggling to increase sales at a loss. As one seller in the industry lamented: "The more you sell, the more you lose!" Even big sellers can't escape the curse of declining profits, let alone small and medium-sized sellers.

Xiaotian, an Amazon seller, said that he sold an old product for $19.9, but suddenly many competitors offered a price of $12.99 and often gave discounts. After the orders were snatched away, he had to lower the price and lose money. A colleague said that during Prime Day, there were a lot of orders but no profit. If the product was sold at normal prices, it would still make a profit, but it would lose money during the promotion. The total loss in two days was more than 5,000 US dollars.

Like Xiaotian, Chen Ping sighed: "This year's sales volume is at most about three times that of the normal off-season, but there is almost no profit. This is without advertising, otherwise we would probably lose money. Now everyone is simply doing charity for Europeans and Americans. It's good enough to be able to clear the goods, and we dare not even think about making money!"

Sellers of different sizes are struggling in the vortex of profits, and logistics companies and suppliers around the cross-border e-commerce industry have also been affected. Cooper, a supplier of Zebao, collapsed due to being owed money by multiple cross-border sellers and announced that it would stop production and close down; Global Easy Shopping owes money to more than 3,000 suppliers, many of which are struggling to survive; there have also been many reports in the industry that freight forwarders have closed down due to broken capital chains.

How should cross-border people fight to defend their profits?

Without profit, everything is in vain. The core issue that cross-border people cannot ignore is: how to keep the profit?

For cross-border people, the cold market environment is inevitable, and they can only put their efforts into daily operations, such as reducing costs in many ways. Usually, they should observe advertising data more often and not spend a penny more on advertising that should not be spent; compare some logistics channels and select cost-saving delivery modes under the premise of ensuring safety ... In short, they should always save money and increase flow.

In the process of saving costs, a seller discovered a channel that can help cross-border e-commerce reduce costs by more than 10% - Longmeng. After joining Longmeng, the seller enjoyed free office and free warehousing services, helping the company save hundreds of thousands of office, warehousing and labor costs every month.

According to the seller's real investigation, Longmeng is the first cross-border industry small and medium-sized micro-enterprise joint guarantee alliance in the country. It can help cross-border e-commerce companies bear warehouse rent, employee wages, office rent, property water and electricity fees, and network fees! No matter how much the seller's original cost is, Longmeng can help the seller bear it! !

It was learned from official channels that Guangdong Suteng Logistics is currently a strategic partner of Longmeng . Longmeng has also successfully attracted cooperation from well-known cross-border e-commerce companies such as ZAFUL, WELOOC, ROSEGAL, and Aidijia, as well as the entry of logistics companies such as Zhilianda Supply Chain and Longyuan Supply Chain. While helping cross-border e-commerce companies reduce operating costs, it also protects cross-border e-commerce and logistics service providers and suppliers from the risk of cooperation losses, and reduces the risk of capital flow interruption caused by cooperation violations.

It is reported that Longmeng currently owns Cross-border No. 1 shared space ( 5,600 m2), Cross-border No. 1 shared warehouse (20,000 m2),

Cross-border No. 1 shared transit center ( 2,800 square meters) and cross-border No. 1 European shared overseas warehouse (1.5 million square feet).

According to Longmeng's current scale , it can bear the storage and office costs for 400 cross-border e-commerce companies. In addition, according to development needs, Longmeng will continue to expand the office and storage area to provide cost reduction and guarantee for more cross-border e-commerce companies, and help more cross-border e-commerce companies go overseas. We look forward to the emergence of more companies like Longmeng in such a market environment to help sellers get out of the current predicament.

Click the entrance to join Longmeng, which will help enterprises save costs, obtain more business resources, have higher risk resistance, and achieve more stable and faster development. Follow the official account "Cross-border Longmeng" for more details.

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