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Amazon will charge holiday peak delivery fees, making it more difficult for sellers in the United States

08/25/2022
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Amazon will charge holiday peak delivery fees, making it more difficult for sellers in the United States

On August 17, Amazon announced that from October 15, 2022 to January 14, 2023, it will charge a " Holiday Peak Fulfillment Fee" for products using Amazon's logistics in the United States and Canada. Items are 35 cents . The actual charge will be based on the size and weight of the product sold by the seller, and sellers can check more details through Seller Central.

Amazon said the industry will face increasing pressure on logistics and warehousing costs due to the high concentration of shipments during the peak year-end sales season. Therefore, it was decided to refer to the practice of the logistics and distribution industry and collect distribution fees during the peak sales season. This means that during the three-month period from October 15, 2022 to January 14, 2023, Amazon sellers will pay at least $0.35 in additional peak season shipping fees for each item they sell.

It is reported that other logistics carriers in the United States have also begun to charge holiday peak delivery fees one after another.

On August 10, the United States Postal Service (USPS) announced an increase in domestic shipping rates for the 2022 holiday season, and the price increase will apply from October 2, 2022 to January 21, 2023, CST.

FedEx will increase its additional processing surcharge on September 5, which applies to FedEx packages and U.S. and international ground services, and will increase again on October 3, continuing through January 15, 2023.

Since the beginning of this year, due to changes in the international situation, inflation in the United States has led to various cost increases and reduced orders. Now, coupled with the increase in tail-end delivery fees, it is tantamount to worsening problems for sellers in the United States. Some sellers have expressed that they can't hold it anymore.

"When I saw this news, I immediately went to increase the price. Anyway, there are not many orders."

"If the freight goes up, I will go up. We, the small sellers, keep the profits first."

"Anyway, I've already gone up by $1 immediately, whether you go up or not"

"The peak season is coming, not only the sales are flat, but also the logistics will be delayed. Now the delivery fee is still rising. Some orders with running volume have no profit of 0.35 US dollars, so they will not be sold."

In the end, the seller's store can only increase the price in order to survive. The price increase will reduce the buyer's willingness to buy, the seller's order volume will decrease, and finally the seller will pay. How to break the game?

For those products that are sold and sold, the order volume is large but the profit is low. You can suspend the sale or directly discard it, re-select the category, and take the brand boutique route. Although the order volume will decrease, the overall profit will not drop or even higher. After all, if it is a necessities of life, or if the brand is deeply rooted in the hearts of the people, buyers are willing to pay even if the price increases. For the backlog of unsalable products in the warehouse, it can be destroyed in a timely manner or resold to the local Empire Express US overseas warehouse for processing, which can quickly recover funds and reduce financial pressure.

Sellers can pay more attention to the various fee reduction activities and preferential plans provided by the Amazon platform and participate in time, which can also reduce costs. In terms of logistics selection, you can choose the combination of shipping, general shipping, and fast shipping lines to ensure the transportation timeliness as much as possible while saving logistics costs. For terminal delivery, you can choose to use the platform logistics distribution with the US overseas warehouse drop-shipping distribution mode.

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