Prices are involuted and costs are high! Sellers are "dismayed" on the eve of the peak season

2021 is an extraordinary year, and the operation path for sellers is still difficult. There is a wave of account blocking, rising logistics prices, the issuance of power rationing orders, storage capacity restrictions, and early warehousing time ... With one problem after another in front of them, Amazon sellers have to speed up their preparations for the peak season.

Early warehousing + storage capacity restrictions = difficult peak season! Where does the seller's profit go?

The countdown to the much-anticipated peak season has begun. "Black Friday" and "Cyber ​​1" are great opportunities for sellers to boost sales and they should not be missed. According to Amazon Global Selling, sellers have recently received official event notification emails from Amazon.

There is a reason why "Black Friday" and "Cyber ​​​​Monday" have attracted the attention of many Amazon sellers. By participating in the submission activities, sellers can not only advertise the promoted products in advance, but also promote their stores and increase exposure. The help in traffic is obvious.

However, just as this important profit node is about to arrive, many sellers are tripped up by the problem of stocking up. When the two major problems of " early warehousing " and " warehouse capacity limitation " come together, one seller said: "It is a luxury to not lose money during this peak season!"

Some time ago, Amazon's US site released an announcement, declaring that the latest time for Christmas inventory to enter the warehouse this year will be advanced to December 2, which made the sellers who were already busy preparing for inventory even more nervous. This also means that the sellers' preparation time has been shortened by nine days.

In the context of such a tense shipping situation, the high costs and slow delivery times are undoubtedly a further blow to most sellers with replenishment and delivery plans. It is not easy to smoothly enter the warehouse on time, and the rising costs have made many sellers say that they "cannot afford it".

Some sellers said that the goods they sent in August have not arrived yet. The "sky-high shipping costs" and "slow delivery time" are completely disproportionate. By the time the goods are replenished, the peak season may be over.

But in fact, sellers are facing more than one problem. During the peak season, storage capacity restrictions are making it difficult for sellers to breathe, making it even more difficult to prepare and replenish stocks.

"The inventory capacity has almost been reduced by half, and is still declining every week. It is completely unable to meet peak season sales. Sales will be at least 40% lower than in previous years." A seller who was preparing goods said that although his IPI was above 700, his inventory capacity had been decreasing.

Overall, affected by multiple factors such as the epidemic, storage capacity restrictions, and rising shipping costs, the peak season that has been anticipated for a whole year has been plagued by many obstacles, costs have risen, profits have been squeezed again and again, and the passion and enthusiasm of sellers have gradually been exhausted.

Sellers’ costs are rising again, and emergencies are happening again …

Since the beginning of this year, various prices such as logistics and raw materials have been spiraling upward, exchange rates have fluctuated intermittently, and related policies have emerged one after another, which has caused the costs of many sellers to rise sharply, and their profit margins can be said to have been squeezed to almost nothing.

Take logistics for example. The global port congestion has not come to an end. The phenomenon of cargo ship backlog and extended delivery time still exists. Ocean freight continues to fluctuate at a high level. Relevant data shows that as of October 22, US time , there are still 40 container ships waiting to berth . Seeing that the peak season is just around the corner, the goods cannot arrive, which undoubtedly causes a lot of trouble for sellers.

To make matters worse, in addition to delays , some sellers ' goods are at risk of falling into the sea and being lost. According to foreign media reports, a ZIM Kingston ship loaded with Chinese goods, which was docked in Xiamen, Ningbo, Shanghai and other places, encountered a storm when it was about to reach Vancouver, Canada. About 40 containers on the ship fell into the sea , and only 8 containers were found.

Freight rates are also unpredictable. Many sellers said that they were immersed in the joy of the decline in ocean freight prices one second ago , but were pulled back to reality by the sudden price increase the next second. Industry insiders predict that with the Christmas and Black Friday peak seasons approaching one after another, it will be difficult for the prices of goods and services to fall in the short term, while the air freight prices are too high , and freight will become a nightmare for sellers before the peak season.

Sellers usually prepare stocks before the peak season , but the power restriction policy has exacerbated the shortage of products, and the topic of rising raw material prices has once again been brought to the forefront. Some cross-border people said that the price and profit of raw materials have not increased , and their suppliers have also raised their product quotations. They are about to collapse, which is a chilling feeling.

In addition, the fluctuation of exchange rate from time to time also worries many sellers. A week ago, the US dollar exchange rate fell to 6.3, which made a large number of export sellers cry. Some sellers even said that this drop caused their payment of goods to evaporate by hundreds of thousands, and this year's peak season for shipments will also end early.

Many sellers want to share costs through selling prices to recover some of their losses, but advertising costs have further increased the costs of many sellers. Under the wave of account suspension and fake orders, sellers tend to operate in compliance. In order to increase product exposure and sales, they can only increase advertising investment, and Amazon's Sponsored Products have become the choice of many sellers. Sellers gather together to attract traffic, which increases advertising costs while also increasing product costs.

Good news for sellers! Here are some tips to reduce costs

It can be seen that when the peak season sales are about to come, in addition to grabbing more traffic, it is more important for sellers to be able to manage funds efficiently and flexibly, reduce costs, increase profits, and make adequate preparations to win the peak season battle. The editor learned that Payoneer , one of Amazon's official payment service providers, has sincerely launched a peak season comprehensive welfare plan, with free withdrawals, rebates for payments, and full coverage of both payment and collection, which comprehensively helps sellers reduce costs and increase profits:

The cost of receiving and withdrawing money is reduced to zero, and Amazon’s new deposit rate is limited to “0” during the peak season

During the peak season promotion, not only can newly-bound Amazon stores enjoy "0" fee withdrawals , but as store sales and receipts increase, sellers who have already bound Amazon stores can also enjoy "0" fee withdrawals for the monthly incremental portion . It is worth mentioning that if old customers recommend new customers to bind Amazon stores for payment, both parties can enjoy incentives ; all new customers who sign up during the event can enjoy VIP account opening privileges , and a professional team will assist them in opening an account quickly through the green channel.

You can also make money with business payments, with up to 4.25 % rebate during peak season

In addition, Payoneer has also launched the " Sui Xin Pay Peak Season Big Rebate " activity. For users who have not yet experienced the convenience and ease of use of Sui Xin Pay, the extremely low-cost Sui Xin Pay is undoubtedly their best choice, because its rebate ratio can reach up to 4.25%, which truly helps sellers save money through business payment tools . For sellers, it is not easy to increase profits by 4.25 % on weekdays , but now as long as you use this payment, you can earn up to 4.25 % directly .

Take a real case, for example, a seller has a peak season sales of 1 million USD, and the advertising fee is 200,000 USD. The seller has two choices: one is not to participate in the P card peak season support plan. In addition to paying the 200,000 USD advertising fee, the remaining 800,000 USD will also require a withdrawal fee of several thousand USD; the other is to switch to a new P card to participate in the peak season support plan. The 200,000 USD advertising fee can be paid through Suixinfu and you can enjoy a reward of nearly 3,000 USD, and the remaining 800,000 USD can be withdrawn at 0 withdrawal fee. With one in and one out , thousands of USD in profit will come out, and the choice is obvious.

This activity will end on December 31st. Interested sellers should learn more and participate in the peak season rebate activity of Payoneer! (Remember to read the activity rules and applicable conditions carefully)

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Peak Season