93% of Amazon sellers suffer revenue loss due to supply chain issues

93% of Amazon sellers suffer revenue loss due to supply chain issues

Despite the chaos in the U.S. supply chain in 2021, total U.S. e-commerce sales still reached nearly $470 billion , of which Amazon’s sales accounted for nearly 40%, and nearly 50% of Amazon’s sales came from third-party sellers on the platform .

 

According to the latest survey by Jungle Scout , 93 % of Amazon sellers said that their revenue was damaged due to supply chain disruptions , and most companies' inventory was delayed for two months or more. Some of the survey results are as follows:

 

Ø 48% of large brands said their inventory orders were delayed by one to four months.

Ø 42% of large brands and 27% of small business owners said they were unable to order new inventory from suppliers .

Ø 44% of large brands and 26% of small businesses said their existing inventory was affected by supply chain issues.

Ø 23% of large brands and 11% of small businesses said they lost the Buy Box due to product out-of-stocks due to supply chain issues .

 

Jungle Scout said 45% of small businesses estimated that their total sales lost due to supply chain issues were less than $5,000, but 30% of small businesses lost between $5,001 and $25,000 .

 

In contrast, 18 % of large brands estimated their sales losses to be less than $ 50,000 , while 16 % estimated their losses to be more than $ 500,000.

 

It is reported that these delayed stocks mainly come from China, with 69% of small businesses and 66% of large businesses mentioning that their stocks from China failed to arrive in time due to supply chain problems . In fact, 42% of the goods imported by the United States come from China.

 

Faced with the challenges brought by the supply chain crisis, different brands have demonstrated different responses , and there is no specific single response .

 

For small businesses , 20 % of sellers cut advertising spend , 20 % changed their fulfillment methods, 24% launched new products with sufficient inventory , 18% discontinued products, and 9% rented more warehouse space to store the goods they had in stock .

 

For larger brands , 37% cut advertising spending and 34 % changed fulfillment methods. Nearly a third launched new products, 22 % discontinued products, and 25 % expanded warehouse space.

 

In addition to the above measures, some big brands have taken additional measures, such as changing suppliers ( 27%) and increasing advertising spending to sell products with sufficient inventory (17%) . They also responded to the delay crisis by raising product prices and sending goods to warehouses months in advance .

 

Although the supply chain in the United States has stabilized this year , container ships on the West Coast are still backlogged, product and worker shortages are still there , and the problem of rising freight rates still exists . We don’t know what challenges cross-border sellers will face in the new year, but we can only hope that all goes well for sellers in the Year of the Tiger!

logistics

Amazon Platform

Cross-border e-commerce market

<<:  UPS's total revenue in 2021 was 92.787 billion, and the average daily package volume in Q4 was 29.3 million!

>>:  Amazon's fourth-quarter profit doubled, and its market value soared by $190 billion in a single day

Recommend

Will antitrust affect third-party sellers? Amazon has issued a warning

According to an email disclosed by CNBC, members ...

What is LinkAja! Wallet? LinkAja! Wallet Review, Features

LinkAja is one of the mainstream e-wallet payment ...

What is Acar? Acar Review, Features

Acar flagship store is an online store opened and ...

This works! Shopee is a game changer in Brazilian e-commerce

According to Reuters on August 30, Sea Ltd. Shope...

Disbanded on the spot! Shenzhen's 31-year-old factory collapses

Under the influence of factors such as intensifie...

What is Kilimall

Kilimall is committed to operating locally in Afri...

What is Sessions? Sessions Review, Features

Sessions is a term related to Amazon backend repo...

Freight forwarder accepts goods at a loss? Seller receives 20 sales calls a day

The shipment volume of cross-border e-commerce se...

What is Toolots? Toolots Review, Features

Toolots is a subsidiary of Toolots Inc., headquar...

What is Faytek? Faytek Review, Features

Faytek designs and manufactures fiber optic patch ...

Four vests soliciting goods? This freight forwarding company went bankrupt

Recently, the freight forwarding industry has see...

What is Tongyue Logistics? Tongyue Logistics Review, Features

Tongyue Logistics provides professional cargo tra...

Three recalls in three months! Sellers of this type of product should beware

Recently, the U.S. Consumer Product Safety Commis...