More than 400,000 goods are stuck, sellers: I made a lot of money in the peak season

"The value of goods is 400,000 yuan in Amazon warehouses and on the road. There is great financial pressure to ship goods overseas, and there is no profit at all if the goods are shipped in small quantities... Will sticking to the old ways be the beginning of the failure of small sellers?" Many fellow sellers agreed with the seller's sigh, saying that this is the true portrayal of Amazon sellers this year.

More than 400,000 goods are blocked! Sellers: Difficult to prepare goods, low profits

Recently, a seller shared his current situation on Amazon on a social forum, which won the approval of many sellers.

According to the seller, the store has more than a dozen SKUs, and the main orders are from only 7 good links. The value of the goods in Amazon warehouses and on the road is now over 400,000.

One of the problems that sellers encounter is the difficulty in stocking up. For example, the price of air shipment has soared to 90+ recently, and the seller even said that he would not even want to ship by air if there is a shortage of stock; for sea shipment, it currently takes one month for a regular ship, at least two months to Canada, and even 2.5 months if you are unlucky.

“Most small sellers are having a hard time this year. What can they do? They just have to hold on. If they can’t afford air shipments, they can only increase their stocking funds for sea shipments and hope to make some money during the peak season.” A seller lamented.

The stocking cycle has been extended, and the financial pressure on sellers can be imagined ...

Low profits are another major problem for sellers. The seller said that after a rough calculation, this year's profits are much less than last year . He doesn't know which of the reasons is the rising costs, the spiral of peers, and the price hike of Meisen . However, it is certain that there is no money, and there is no return of payment.

"I'd rather do something else with this little profit. Don't ask me what the profit percentage is, because it's too low to tell you." The seller said. I chatted with many service providers, and they also said that most sellers are losing money this year. I don't know if it's true or not.

In addition, advertising costs have also increased significantly this year. Some sellers said that the average order price has increased by one US dollar compared to last year. The advertising costs are unbearable , and this is one of the biggest reasons for their profit reduction.

The return rate of up to 20% is a headache for sellers. "The listing will be locked up once a month, just right." Many sellers in the clothing category said: "I think only I know the pain. I made no money during the peak season this year."

With the rapid development of cross-border e-commerce, many laymen choose to enter Amazon to "make money". We don't know whether they made money or not, but we know that these friends are really "rich". "They start with thousands of stocks, clear them out if they can't sell, take a break for half a year, and then continue to select products after getting excited, but how many of them really make money? " the seller said with emotion.

Many sellers said that they had selected several products but they just couldn't get them up and had no choice but to start clearing out the stock. They didn't dare to put more money into it and decided to clear out the previous stock first. Some sellers also said that they had been working on Amazon for four or five years and this year was the most difficult year in history. They had already cleared out more than 10 million of inventory.

"The current situation will probably continue for some time. Many businesses have just cleared their inventory. With high sea and air freight rates, not many sellers will be able to keep up with the replenishment. There will probably be a period of out-of-stock situation later, with prices rising. Domestic replenishment will not be able to keep up with the time, and freight rates will rise. It is very likely that we will fall into a vicious cycle." said a seller.

Many sellers said that they had to bear the pain and cut their losses in time, saving their lives this year and fighting again next year. However, the peak season has arrived, and sellers are still facing many problems.

Good news! FBA storage capacity increased at multiple sites

During the peak season, the inventory capacity problem that plagues many sellers still exists. On the one hand, there is slow logistics, and on the other hand, there are replenishment restrictions. Sellers cannot create delivery plans and can only replenish stocks after the inventory is slightly reduced, which will most likely delay sales during the peak season.

Recently, Amazon's global store opening brought good news, and the storage capacity of multiple sites has been increased!

According to Amazon's global store opening news, Amazon has increased the inventory capacity of the operation centers in the UK, Germany, France, Spain, Italy, and Canada, and sellers will have more opportunities to send the required inventory to the operation centers.

In response to slow logistics and delivery restrictions, Amazon has added more than a dozen operation centers, including BGY1, MXP6, MUC3, EMA3, NCL1, MAD7 and POZ2. To meet the current inventory needs of sellers, during the peak season, the storage capacity of sellers in the UK, Germany, France, Spain and Italy will be increased, and storage restrictions and replenishment restrictions will be increased.

Amazon Canada sellers also received good news. It is reported that the site's replenishment limit has been relaxed from 20 items to 100 items. For ASINs created in the past nine months, the replenishment limit is a maximum of 200 items per shipment. In addition to the replenishment limit, the site's storage time has also been adjusted, and the seller's storage time in the operation center has been adjusted from an average of two months to an average of three months.

Amazon Canada has opened two new fulfillment centers, adding more than 4 million cubic feet of storage space, and two more fulfillment centers will open in November, adding another 5 million cubic feet of storage space.

The increase in storage capacity and storage space is undoubtedly good news for sellers who are worried about storage capacity. "The number of new product shipments has increased from 20 to 100. Although it is still not much, it has increased five times. I am satisfied!" said a Canadian site seller. The adjustment of storage time may also increase storage capacity. If you can make up for it, you can make up for it.

At the same time, some sellers are worried that the current logistics costs for shipping to Canada are already quite high. Now that the storage capacity has increased, many sellers will continue to replenish their stocks, and the shipping volume will surge. So, will they face another increase in logistics costs?

In this regard, some sellers remain optimistic and say that they cannot stop shipping. Although logistics costs have increased and profits have decreased, as long as they have sufficient goods and sales can go up, there is still hope for the peak season.

Previously, some sellers reported that the warehouse capacity was seriously insufficient, the order volume was not proportional to the warehouse capacity, and the shipping costs kept rising, so they didn’t even have the courage to participate in this year’s Black Friday. But now Amazon has lifted some restrictions and allowed sellers to continue to replenish their stocks. Some sellers joked: “After waiting for so long, Amazon’s warehouse capacity finally has a surplus, and we can still rush in during the peak season!”

However, some sellers speculate that if the restrictions on restocking continue to be relaxed after the peak season, out-of-stock situations may occur. Therefore, some sellers with a sense of crisis have begun to prepare restocking plans after the peak season in advance.

Although the storage capacity limits of some sites have been adjusted, sellers should still pay attention to their inventory status in a timely manner, remove or replenish stock according to actual conditions, and be fully prepared during the peak season.

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