According to Capterra's research, the overall increase in FBA fees has caused many sellers to flee Amazon and opened the door for other e-commerce platforms, including Google Shopping, Facebook Marketplace and Walmart Marketplace.
On the eve of Black Friday this year, Amazon issued a price increase notice, saying that from January 17, 2023, Amazon's logistics fees will change. Specifically, Amazon Logistics' outbound fees, off-peak storage fees, storage usage surcharges, overage inventory surcharges, and increased removal and disposal fees will increase in 2023. Since 2020, Amazon FBA fees have increased by 30%. In order to maintain profits, FBA sellers have to take various measures, including increasing product prices (54%), using Fulfilled by Merchant services (52%), absorbing costs (50%), and reducing marketing spend (44%).
In an Amazon seller survey, 48% of third-party sellers currently using FBA said Amazon’s peak holiday delivery fees would reduce their profitability. Half (50%) of FBA sellers think Amazon’s fees are unreasonable. In 2023, almost all (99%) FBA sellers intend to sell on other marketplaces. Among them, 50% of sellers plan to sell on GoogleShopping, eBay and Facebook Marketplace, 53% of sellers plan to sell on Walmart Marketplace, other popular platforms include Etsy (38%), Ov?ujxhn.qnhi (22%) and Newegg (17%).
The increase in FBA fees has more or less affected all sellers. Currently, 31% of FBA sellers are selling on other e-commerce platforms. Of course, for sellers, escaping from Amazon is not an easy task. If the seller has a large amount of goods in the Amazon warehouse, it is impossible to directly abandon the goods and transfer them to the platform, so how can the operation minimize losses?
If the seller does not have a lot of inventory, they can continue to sell on Amazon while transferring to other platforms, or reduce the discounted price and sell them out quickly. If the seller has a lot of goods and cannot sell them out in a short time, and the seller does not want to give up this category, you can find a third-party overseas warehouse in the United States for cooperation.
The seller first removes the goods from the Amazon warehouse and returns them to the overseas warehouse in the United States, and then creates the shipment on other platforms and provides the label information to the overseas warehouse of Empire Express in the United States. The platform is on the shelves and continues to sell. In this way, the seller can not only dispose of Amazon’s goods in a short period of time, but also quickly put the goods on other platforms. After all, if the goods are shipped from China, the fastest express delivery will take about 5-7 days, and customs clearance may also occur. question. Transferring directly from the local overseas warehouse not only does not require the seller to re-purchase and stock up, but also saves money, and the timeliness is much faster.
If the seller does not want to continue to operate this product, it can also be directly destroyed or distributed to local offline physical stores through overseas warehouses. Although the repurchase price will be much lower than the normal sale, at least part of the funds can be recovered, so as not to lose all of it.
Empire Express’s US overseas warehouse can also provide long-term storage and drop shipping services, which can help sellers solve the problem of insufficient storage capacity in official warehouses. Especially for some oversized items, the size exceeds the limit of the official warehouse and cannot be stored in the warehouse. There is no limit in overseas warehouses and can be stored normally. For some products that require assembly, overseas warehouses can also provide assembly services to help sellers assemble parts into finished products for sale.
Of course, whether it is eBay, Wal-Mart or Amazon platform sellers, they can use the US overseas warehouse service. The US overseas warehouse does not limit the platform or the quantity of goods. And despite the rising fees, two-thirds of FBA sellers surveyed said they would likely continue selling on Amazon in 2023, citing the importance of Amazon traffic to businesses getting started. After all, Amazon is still the world's number one e-commerce platform.
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