Image Credits: FreightWaves
According to FreightWaves, Inc, U.S import demand is dropping dramatically by 36% year on year from June 2022 from 2021 to 2022. This decrease happens due to some leading causes; the first is inventory collide. These retailers have excess inventory. Second, consumers are getting crunched due to inflation. Thirdly, this is causing container volumes from China to drop as well.
So, you see fewer imports into the U.S. The good thing is that this is benefiting the shipping price and that the shipping prices are starting to go down; the Freightos index is around $9,000 per container. However, this may be a sign that the economy is slowing down.
Image Credit: About Amazon
Amazon has already released dates for their Amazon Prime Day 2022. This will be a two-day savings event starting July 12 at 3 a.m. EDT until July 13, 2022. Prime Day is launched for Prime members in countries like Austria, Australia, Belgium, Brazil, Canada, China, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Portugal, Singapore, Spain, the U.K., the U.S., and for the first time in Poland and Sweden.
Early bargains begin on June 21, with up to 50% off particular Amazon gadgets, up to 50% off Fire TV, and more from popular brands like De’Longhi, Dove, and SodaStream. From June 21 to July 11, Prime members may win large prizes by supporting local companies.
The new Small Business Badge allows Prime members to find and browse products from small business companies in Amazon’s marketplace. Members will be able to recognize products from small company brands and artisans with the help of this new badge.
Amazon’s global transportation network will offer fast and free delivery of Prime Day orders.
Takeaway: Prime Day is less than a month away so make sure that you have enough inventory in-stock in your Amazon Fulfillment Centers. Also, do not forget to prepare your marketing campaigns.
Image credit: Amazon
Amazon plans to launch its drone delivery later this year in Lockeford, California. Residents will have access to sign up for a free “Prime Air” delivery.
These drones have the capacity to carry parcels weighing 5 pounds. Air eligible items include beauty, office supplies, tech gear, and household products.
Amazon claims to have developed a sophisticated technology that allows its drones to recognize and avoid obstacles such as airplanes, people, pets, and other people. According to them, they created their sense-and-avoid system for two critical scenarios: safety in transit and safety approaching the ground.
The drone service will be expanded based on feedback from the California operations.
Takeaway: Amazon’s retail rival Walmart and other major tech firms are already incorporating drone delivery into their logistic operations. Amazon needs to keep up with the competition as the mode of delivery is ramping up Walmart’s delivery service.
Image Credits: Tamebay
Brand Analytics is a feature that gives Brand Owners vital information to help them make informed, strategic decisions regarding their product portfolio and marketing/advertising efforts.
Amazon Seller Central said in their news piece that brand analytics is removing two features: item comparison and alternative behavior dashboard. This implementation is effective on June 30th, Thursday.
According to Amazon, seller feedback and usage data indicated that the dashboards were not as helpful as they thought. As a result, the retail giant has decided to eliminate the said dashboards and brainstorm on the new features in 2023.
Takeaway: According to seller feedback and usage volume data, these dashboards don’t always provide impactful and actionable insights, so Amazon is looking into adding deeper customer behavior analytics in 2023. It’s reassuring that they’re still working to improve the Amazon Brand Analytics insights they provide.
After the 7 Figure Sourcing Summit, I’d like to spotlight India which is the fastest sourcing alternative to China. I’ve invited India Sourcing experts, Meghla Bhardwaj and Margaret Jolly of India Sourcing Network to walk us through negotiating your way to success when sourcing from India.
In this 60 min live Masterclass, Margaret Jolly and Meghla Bhardwaj, Co-Founders of India Sourcing Network will share strategies for negotiating with Indian manufacturers to learn:
Join us live on Wednesday, June 22nd, 2022 at 8 PM EST
Excited to know how to source from India and scale your business? RSVP and submit your questions to Meghla and Marg here.
See you inside!
Earlier this week, we had two live panels with a dozen sourcing experts to share with you valuable insights and I’d like to share the replay with you in case you missed it live.
Watch the replay to get all of your sourcing and supply chain questions answered such as:
– Can I source my product from X country?
– How can I find a trustworthy supplier from X country?
– Will it be cheaper than China?
– What scams will I need to watch out for?
– The #1 negotiation tip that will save you tens of thousands of dollars
– What’s the best online platform you use to source and why? Alibaba vs Global Sources
– Certification and Testing – this is causing suspensions – what needs to be done?
– How to differentiate your product even if you don’t have any design skills
– And much more.
In session 1 we covered Sourcing in a Post-Pandemic World. I invited six sourcing experts from China, India, Mexico, Vietnam, Europe and in the US to deep dive into the topic.
Watch the replay here: [Sourcing Masterclass] Sourcing in a Post-Pandemic World
On day two, we had an Advanced Shipping, Quality Control, Negotiations, Product Design, and Advanced Supply Chain strategies on a live Panel as well. So, make sure to check this one out to get the right strategies in your next shipping transaction.
Watch the replay now and get your sourcing questions answered by the top sourcing experts in the industry.
In case you missed it:
Have a great weekend!
As of Wed. June 1st, 2022 Shanghai has lifted the COVID lockdown according to Reuters.
Source: Reuters/Aly Song
While the people are starting to resume a normal life and offices are now open, in terms of the supply chain it can be best summed up as “Everything is happening at once” according to Jarrod Ward, a supply chain executive from Yusen Logistics based in Shanghai.
Further reports from supply chain professionals say that “I think the best way to describe it is that the firehose has been turned on full but the water is being forced through a sieve. There’s massive back pressure and splatter as everyone is trying to figure out how to make things work while complying with the new reg(ulations).”
Takeaway: While this is great news it may be a bumpy ride ahead in the near future as the supply chain tries to get back on track.
The Sourcing Shift Away from China?
As of mid-2022 China is no longer the only sourcing game in town.
We have seen a shift away from China in the last 3 years as other sourcing destinations are gaining a share of the sourcing market.
According to a survey of US and European businesses by QIMA, the top sourcing destination has shifted away from China. In 2019 China represented 61% but it fell by 14% to 47% in Q1 2022.
Similarly, India’s sourcing market share has risen dramatically from 6% to 10% in the past 3 years.
The takeaway is we are seeing a shift in the sourcing and supply chain base towards countries like India and Vietnam.
Another key trend is “Nearshoring” as buyers are shifting their sourcing to nearby destinations such as Mexico for US buyers and Europe for buyers in the EU. The thinking is that this close proximity will reduce shipping costs, lead times, and lower duties and tariffs.
A key point to consider is that while buyers are shifting sourcing, they are not completely moving out of China because China is “too big to ignore”.
No other single country can replace China. In fact, the big players such as Apple and Nike have been adopting a China +n strategy. They are outsourcing some products to other countries while keeping the non-movable production in China. They have been doing this China +n for years. Shouldn’t you?
Good news – you probably don’t have a sourcing or supply chain department in your business so I’ve done the work for you.
I’m super excited to announce the 7 Figure Sourcing Summit – The A to Z resource for all your Sourcing and Shipping Needs launching online June 13-14, 2022.
It’s like the 80/20 of sourcing from around the world.
You won’t find a resource like this anywhere else and you will learn sourcing strategies directly from 7 to 8 Figure Ecommerce sellers and sourcing experts.
You can get your free pass right now at http://7figuresourcingsummit.com/
See you inside!
Image Credits: Amazon.com
Prime Day has signified a peak period for Amazon Sellers. This event also ensures that merchants reach out to customers, increase sales, and simultaneously build their own and Amazon’s businesses.
Amazon has established the Amazon Prime Day Summit. It will be held on June 7th and 8th, from 9:00 a.m. to 12:00 p.m. Pacific Time.
The first step is to create an account on your Seller Central dashboard. This can also help you create or improve a Peak Advertising Campaign and create powerful product description pages. It’s even better if you use the sessions to assist you set up and monitoring practices for your firm’s advertising side.
The summit will also give sellers an overview of numerous reports and a more excellent grasp of applying what they’ve learned to achieve success. There will also be live Q&A sessions to address vendor problems and questions.
Constant learning is an essential variable to the growth of your business. Stay relevant and innovate, especially in implementing strategies to keep up with the competition. Events similar to this Prime Day Summit can help.
Image Credits: eCOMMERCE BYTES
Businesses that participate in FBA in the United States have been permitted to employ remote fulfillment with FBA since 2018. This is to make their merchandise in the United States available for purchase in Canada and Mexico. Customers have benefited from the program since it has expanded their options and made it easier to sell outside of the United States.
Amazon’s Remote Fulfillment with FBA takes advantage of domestic and foreign marketplaces. Amazon has made considerable efforts to assist its sellers better, nearly doubling the number of fulfillment facilities available. Over 750,000 full-time and part-time jobs were also added. All of this comes with an increasing hourly salary, ranging from $15 to $18.
However, beginning June 30, Amazon will adjust remote fulfillment fees with FBA fulfillment fees. These increases are believed to be comparable to or less than the industry average for fulfillment services. To better comply with the conventional FBA rate structure, they will also incorporate a dimensional weight adjustment in their rate calculation.
This initiative helped retailers to expand their business. However, we need to go to 2022 remote fulfillment with FBA fee changes to study how the shifting prices of fulfillment, shipping, storage, and customer support can influence our business.
Did you know that Sourcing can make or break your business?
Gary Huang, founder of the 7 Figure Sourcing Summit and 80/20 Sourcing just provided a valuable discussion
In this masterclass, Gary shared the landscape of the supply chain around the world, what are the major changes that you have to know in 2022 and the 80/20 of the different areas of the world you can source from.
In this 60-minute live webinar, you’ll learn:[2:48] Which of the countries most of you are interested to source from? [3:20] Where most of you are currently sourcing from? [4:09] Sourcing is Changing [6:26] China – Sourcing King [9:40] Q&A: What platforms should we use for sourcing apart from Alibaba [11:08] India – Rising Star [15:32] Mexico – Pura Vida [19:44] The 9-9-6 work culture in China [21:00] Vietnam – Big Players [25:41] Q&A: How to get connected online with Vietnam sellers? [27:34] USA – The American Dream? [31:09] Q&A: What is the best country to source for Amazon Middle East and Australia? [32:05] Sourcing Countries At A Glance [32:45] Type of products you can get from different countries [40:05] The 7 Figure Sourcing Summit – The A to Z resource for all your Sourcing and Shipping Needs
In case you missed it:
Have a great weekend!