80/20 Of Ecommerce – June 17, 2022

June 17, 2022
/ Blog
/ By sevenfiguresel
/ 15 COMMENTS

US Import Volume from China “Drop off a Cliff”

US Import demand dropping dramatically 36% YOY… Why?
- Inventory glut – excess inventory
- Inflation crunching US consumer purchasing
- Container volumes from CN to US continue to decline

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.

Amazon Prime Day 2022 Dates Announced

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.

Amazon drones are starting to fly for deliveries in California

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.

Amazon Brand Analytics Removes Features

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.

Join us for a live [Sourcing Masterclass] Negotiating Your Way to Success When Sourcing From India on Wednesday, June 22nd, 2022 at 8 PM EST

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:

Proven negotiation strategies to get you the best price
When to start negotiating
What to negotiate apart from price
Cultural sensitivities when negotiating so you don’t offend them
Common mistakes to avoid that could cost you time and money

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!

[REPLAY] Sourcing Experts from China, India, Mexico, Vietnam, Europe, and the US discussed how to source from their countries

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 here: [Sourcing Masterclass] Shipping, Quality Control, Negotiations, Product Design, and Advanced Supply Chain strategies

Watch the replay now and get your sourcing questions answered by the top sourcing experts in the industry.

Day 1 – [Sourcing Masterclass] Sourcing in a Post-Pandemic World

Day 2 – [Sourcing Masterclass] Shipping, Quality Control, Negotiations, Product Design, and Advanced Supply Chain strategies

In case you missed it:

Have a great weekend!

-Gary

About the Author sevenfiguresel

Meet Gary Huang, the creator of the AI for Amazon Sellers 28 Day Challenge and the founder of the 7 Figure Seller Summit. Gary's journey in the ecommerce world began in 2005, when he launched his first private label brand selling women’s shoes on eBay. Since then, he has steadily grown a portfolio of ecommerce brands on platforms like Amazon and Shopify, serving customers in marketplaces across the globe.

But Gary's experience isn't limited to just ecommerce. With a decade of corporate experience under his belt, he has managed supply chains in Shanghai, China, overseeing multimillion-dollar sourcing campaigns. This broad range of knowledge has provided him with a unique perspective on the ecommerce industry, which he now shares with others through his various initiatives.

He is a highly regarded figure in the ecommerce space, with his strategic insights and innovative approaches widely recognized in prominent media outlets including Forbes, NPR, and Bloomberg.

Recently Gary’s fascination with AI came from a simple observation: AI was changing everything, everywhere, all at once. This impact is affecting everything from education, politics, the arts, to ecommerce businesses.

This led him to spend hundreds of hours testing AI applications in his own business and interviewing other successful Amazon sellers and ecommerce experts at the AI and ChatGPT Summit for Amazon sellers.

His aim was to find out how AI could be used to grow ecommerce businesses, save time, and increase profitability. The insights he gained have played a crucial role in shaping the AI for Amazon Sellers 28 Day Challenge.

Outside of his own ventures, Gary has shared his expertise on platforms like the Helium 10 podcast, Jungle Scout's Million Dollar Case Study, Webretailer.com, and the Global Sources Summit. His understanding of global trade was even acknowledged when he served as the Chair of the American Chamber of Commerce in Shanghai's Supply Chain Committee, briefing White House Congressional officials on US-China trade and supply chain strategies.

Despite a career that has taken him around the world, from his native Los Angeles to Shanghai and now Japan, Gary remains down-to-earth, focusing on his role as a husband and father. His experiences, both personal and professional, inform his approach to business and the advice he shares through the 28 Day Challenge.

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