Chinese stocks have tumbled since the conflict between Ukraine and Russia began. So many investors have the illusion that the Russian-Ukrainian conflict is a war with Chinese investors' money. Not only is the Chinese stock market bleak, but the U.S. stock market has also plummeted across the board in recent days. Apple crashed Microsoft crashed, Amazon crashed Tesla crashed! Last night, the US stock market value fell by nearly 10 trillion yuan!

What's wrong with Amazon?

US stock-listed company Amazon (AMZN.US) released its first-quarter 2022 earnings report. According to the financial report, Amazon’s net sales in the first quarter were $116.44 billion, compared with $108.52 billion in the same period in 2021, a year-on-year increase of 7%, and a growth rate of 44% in the same period in 2021. That was the slowest growth rate since 2001 and the first time Amazon's revenue has grown by less than 10% for two consecutive quarters.

Amazon’s net loss in the first quarter was $3.84 billion, compared with a net profit of $8.12 billion in the same period in 2021; a diluted loss per share of $7.56, compared with a diluted earnings per share of $15.79 in the same period in 2021.

What makes investors uneasy is that Amazon's stock price began to plummet just two days after the announcement of Amazon's financial report, and its market value evaporated by 206.2 billion US dollars (about 1,340 billion yuan) overnight. Amazon alone accounts for more than one-tenth of the U.S. stock market value evaporated!

At present, Amazon's main position is North America, and e-commerce is Amazon's world-famous business. But the mainstay of Amazon's profits is no longer e-commerce. E-commerce is stagnant, and making money all depends on the cloud.

In the first quarter of 2022, Amazon’s online store (self-operated) sales were $51.1 billion, down 3% year-on-year. Third-party seller services revenue was $25.3 billion, up just 7% year over year.

In the North American base and international markets, it recorded a total loss of $2.84 billion in the quarter, compared with a profit of $4.7 billion in the same period last year. In fact, Amazon has lost money for two consecutive quarters in North America and three consecutive quarters in the international market.

Amazon is having a bad day, and third-party sellers are starting to worry. Because, Amazon's "butcher's knife" has begun to wave to sellers.

Amazon's fees keep rising

Sellers' concerns are well-founded, as Amazon is already acting. The first half of 2022 is not over yet, and Amazon has already made several price increase announcements.

In January, FBA logistics increased prices across the board.

Multi-channel fulfillment fees and disposal fees also increased in March.

On April 14, Amazon officially announced that since April 28, Fulfillment by Amazon (FBA) fees will increase, and each item will be subject to a 5% fuel and inflation surcharge on the basis of the delivery fee.

On April 19, Amazon issued another announcement that the FBA Small and Light program will increase the price threshold for eligible products from $8 to $10.

Recently, the sea freight has just dropped a little, and Amazon's official fees have risen again. It really does not give third-party sellers a chance to breathe.

Many seller friends said that they are really "stressed"!

How can sellers deal with rising costs?

The best way to deal with rising costs is to open source and cut costs! Amazon PrimeDay is just around the corner, and it's a really big official sale for July! All sellers and friends should seize the opportunity to explode orders! Stock up early! In addition, the recent sea freight has dropped, and the seller friends can further reduce the cost by optimizing the logistics plan. No matter how small a mosquito is, it is still meat. In this difficult period, the cost saved is profit! In order to help Amazon sellers to better stock up, Express Ship has launched an activity of free warehouse rental in overseas warehouses to help sellers better stock up on PrimeDay! Both ordinary ships and fast ships have different degrees of preferential activities . Welcome to reply to [ 666 ] in the background of [Express Ship Cross-border Logistics] to learn about the latest freight rates!