- 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.
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:
- 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!
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:
- China Sourcing Updates
- The 7 Figure Sourcing Summit starts next week! (June 13 – 14)
- [Video Replay] The Sourcing Algorithm Live Webinar
Have a great weekend!