Amazon is so popular that sellers' orders surge, factories: all products increase prices by 10%

Recently, some sellers have found that orders are weak and out of stock problems are frequent . Some sellers have not yet received the goods they sent in February. It is understood that a large number of containers are piled up at the West Coast docks of the United States. The Port of Los Angeles is forced to urge companies to pick up the goods as soon as possible. A large number of empty containers are stranded in the United States, and the domestic container shortage problem is likely to continue until the second half of the year.

Freight rates in Europe and the United States continue to rise , and sellers are complaining. But the most difficult part is getting the goods. Recently, stocking up for peak seasons such as Christmas supplies has been put on the agenda, but the soaring prices of raw materials and the shortage of manpower have made it difficult for suppliers to produce and ship goods. Even the goods ordered in December last year have not been shipped yet.

The seller's orders surged, and the factory raised the price of all products by 10%

The United States recently issued $190 million in relief funds, and this week Biden announced a $2.3 trillion infrastructure plan. A seller reminded: The United States will not stop printing money, so be prepared for rising raw material prices. Place orders in advance and lock in prices in advance, so that you don't slap your thighs until they are swollen.

Since mid-March, some sellers have started to stock up for Christmas products, and other products that are sold all year round must also continue to stock up, but the prices of many raw materials have skyrocketed , and factories are reluctant to pile up too much goods, making it difficult to ship. Sellers are constantly urging factories to deliver goods, and they are exhausted .

The cross-border e-commerce seller community is expanding rapidly. The main source of orders for some factories has changed from traditional foreign trade to cross-border e-commerce. Some factories even receive 70% of their orders from cross-border e-commerce. Some sellers have communicated with several suppliers and learned about the current severe shipping situation:

" The goods ordered in December last year have not yet been delivered. The goods ordered after the beginning of the year cannot be fully produced due to the instability of the workers. "

“ All product prices will increase by 10% and delivery time will be extended by one week. ”

" Amazon is so popular that traditional distributors have to ship orders. Amazon's orders have increased a lot this year. It seems that the factory will not have to worry about orders this year, but the raw materials will be a problem. "

" The electroplating and paint factories have temporarily stopped production to rectify environmental protection, and you can't buy goods even if you pay cash. "

Raw materials are the biggest concern for suppliers. From January to mid-to-late March , domestic plastic prices rose by 35%, aluminum by 37%, iron by 30%, stainless steel by 45%, zinc alloy by 48%, and glass by 30% . This is not the end. On March 31, several paper mills issued price increase notices:

The notice stated that due to the continuous rise in raw material prices, the company's costs continued to increase, and the white card /copper card was increased by 500 yuan/ton based on the current sales price, and some companies increased the price of their products by 600 yuan/ton .

The impact of raw material price increases is transmitted to the end-users, suppliers’ costs increase, and sellers can only purchase goods at higher prices. So how much profit do suppliers make?

A Wenzhou shoe factory owner said that business has never been so good since the factory opened, and orders are almost scheduled until the end of the year, but the current production orders are not profitable because of the increase in raw material prices . Another factory owner also said that business is really good this year, but it is not profitable . Wages have been raised , material prices have skyrocketed ... I don’t know whether it is good or bad .

Factories lack raw materials and cannot supply goods in a timely manner . It is difficult for sellers to obtain goods and to replenish them. Out of stock can happen at any time.

FBA warehouse explosion continues, YYZ4 reservation is difficult

Due to the limited number of shipments , many sellers can only restock frequently. Despite this, out-of-stock situations are still often unavoidable. One seller was anxious: "There are so many out-of-stock items, but there are still 600 orders a day. I hope the goods will arrive soon." At this time, the speed at which FBA signs for the goods is crucial.

The IND9 warehouse was labeled as "dangerous" by many sellers. At the end of March, one seller complained: "Is this warehouse closed down? The goods signed for in January have not been put on the shelves yet. "

Recently, Amazon announced that the Canadian YYZ4 warehouse, which was previously closed due to the epidemic , resumed operations on March 28. However, according to feedback from freight forwarders, the warehouse was overloaded, making it difficult or even impossible to arrange for delivery of goods. Sellers are advised to avoid it as much as possible when shipping and building warehouses in the near future .

In addition, many popular warehouses in Nuremberg, Germany, have been overwhelmed, and most European dealers have stopped accepting goods from several warehouses such as WRO5, WRO1, POZ1 and XWR1. The containers previously loaded with Nuremberg goods will cause overall time delays. Freight forwarders said that there is no effective solution for European local express delivery, and some non-Nuremberg goods will also be affected.

There may also be problems with lost goods after the goods arrive at the warehouse. Recently, many sellers have said that FBA has lost a lot of goods and it is difficult to claim compensation. One seller was very helpless: " My two stores have lost dozens of sets of goods. This time, Amazon lost 14 boxes of goods, half of the goods, and then Amazon repeatedly rejected my (claim) for various irrelevant reasons. "

Slow listing or difficulty in booking is a problem for some FBA warehouses, but it is not Amazon’s fault if the goods take too long to arrive. It may be stuck at the West Coast docks in the United States with too many containers.

Los Angeles Port is congested in the west coast of the United States and sellers are rushing to pick up goods. The seller’s February shipment has not yet arrived.

In a statement released this week, officials at the Port of Los Angeles urged companies to pick up cargo more promptly.

The official said container dwell times have been extended since the pandemic began, and that this extension could cause transportation problems as the shopping season changes . "We are asking importers to pick up the goods as quickly as possible, sort the products and then return these containers to the port."

The congestion at the West Coast ports of the United States has directly affected the delivery time of domestic sellers . Some sellers said that the cargo from Matson in early February has not arrived yet. The freight forwarder kept saying that they were investigating and did not give a clear answer. Even more outrageous is that some sellers have not received several shipments sent before the New Year. More sellers have reported on cargo delays:

"The Matson Express was delivered to the West Coast of the United States on March 25 before the Lunar New Year, and it has not been put on the shelves yet . "

" It left in February and arrived in Hong Kong in March . It has been delivered and has not been put into storage until now . "

" The ship from Matson was scheduled to arrive at the end of January , but it has been delayed. At first, it was said to arrive at the port on March 31, but later the freight forwarder said it would arrive at the port on April 16. "

In this regard , an insider in the industry said that many of the goods shipped in February were cheated. At that time, there were no cabinets on the market at all, but the freight forwarders continued to receive the goods. In the end , 50% of the goods on the market were not shipped until after the New Year.

A large number of empty containers are stranded in the United States, and the shortage of containers may continue until the second half of the year

According to data from the Southern California Marine Exchange, 24 container ships were anchored off the coast on Monday morning , waiting to dock at the Port of Los Angeles and the Port of Long Beach . These ships are carrying thousands of boxes, containing millions of dollars worth of washing machines , medical equipment , consumer electronics , etc. They are all stuck in the waters or stuck at the docks , and some ships have been waiting for 12 days.

The ports of Los Angeles and Long Beach continue to have to deal with congestion as the number of arriving vessels continues to increase. In February, 177 ships and more than 800,000 containers (measured in twenty-foot equivalent units, or TEUs) arrived at the ports , a 31% increase in the number of ships and 49% increase in containers compared to the same month last year .

Gene Seroka, executive director of the Port of Los Angeles , said that the port's import volume will continue to be strong from spring to early summer, and the Port of Los Angeles is expected to handle about 830,000 TEUs in March, and the cargo volume in April will be roughly the same as March. At the Port of Long Beach, the cargo volume forecast for March is more than 700,000 TEUs, a 50% increase from about 450,000 TEUs in the same month last year . Port officials expect cargo volume in April to exceed 600,000 TEUs, which is the same as last year.

However, the export volume of both ports has declined. The number of empty containers in Long Beach has increased by about 70%, and the number of empty containers in Los Angeles has increased by 104% , resulting in a sharp increase in the number of empty containers year-on-year. As a result, a large number of empty containers are stranded in the United States and other places and cannot be returned to Asia in time. The shipping price of imports from Asia has increased several times compared with the past . The shortage of containers is one of the important reasons .

In addition to empty containers stranded at ports, the epidemic has also caused about 25 million containers to be unusable. Some analysts pessimistically expressed that the shortage of containers and the resulting port congestion may continue until the second half of this year .

United States, Logistics, FBA