Shipping costs from China to the US have skyrocketed to an all time high this week according to Reuters.
The cost of shipping a container from the Port of Shanghai to Long Beach/LA has surged past $20,000 a container.
A combination of factors including the more virulent Delta strain of COVID leading to lockdowns, a surge in shipping demand as economies reopen, a lack of logistics capacity, and even typhoons in Asia have caused this “Perfect Storm”.
“Shipping companies can charge four to ten times the normal price to move cargoes…. We have not seen this in shipping for more than 30 years,” said Philip Damas, Managing Director at maritime consultancy firm Drewry.
Damas expects the “extreme rates” to continue until Chinese New Year 2022.
Amazon sales revenue “lagged forecasts for the first time since 2018” according to Bloomberg.
This has some speculating that ecommerce may slow down as the world reopens from lockdowns.
Amazon stock dove by as much as 8.1% as a result. Etsy and Ebay stocks dropped as well from the news.
On the other hand, according to a number of ecommerce entrepreneurs I’ve spoken to, while they did see a dip in sales on Amazon, they are seeing a slow rebound as we transition into Q3.
In my view, many people were simply waiting to go out and resume their normal lives visiting stores, eating out, and reconnecting with the outside world.
Moreover, summertime is the SLOWEST season of the year in ecommerce as the weather is warmer, school is out, people take vacations and spend less time in front of screens.
However I believe this is temporary.
Traditionally as back to school season begins ecommerce picks up as well.
But it is an important note that Ecommerce sales may be returning to more normal growth this year contrary to the stratospheric highs seen in 2020.
Get $400 in Free FBA reimbursements from GETIDA (Sponsored)
If you have been selling on Amazon for some time then chances are you may be leaving money on the table.
Did you know that Amazon often overcharges you, the FBA seller, in the following ways?
- Pick and Pack fees
- Mismeasured product sizes
- Lost inventory
- Damaged inventor and more
The FBA discrepancy rate can range between 1-3% of your annual FBA sales.
Over the course of a $1 million dollar business that can be $10,000 to $30,000 annually that is being withheld from you.
You can do this yourself but if you don’t have the time it makes sense to get help with an FBA auditing and reimbursements solution like GETIDA this so YOU CAN GET YOUR HARD EARNED MONEY BACK.
GETIDA is a sponsor of the upcoming 7 Figure Seller Summit and they provide Amazon sellers with a ton of value so you can keep more money in your POCKETS:
So if you want someone to get this money back from Amazon for you, I highly recommend using GETIDA to maximize your available Amazon FBA refunds. They only charge fees when they are successful in getting money back for you.
GETIDA has also prepared a Special Offer which you can signup for here:
Get up to $400 In Free FBA Reimbursements.
I was interviewed recently by my friend Amy Wees from Amazing at Home to share the Top 10 lessons I learned after interviewing over 100 7 Figure Sellers and Ecom Experts
In this 55min session you here to learn:
- Product selection strategies
- Ways to deal with Amazon inventory restrictions
- How to offset the high shipping rates
- How to overcome Amazon inventory restrictions
- Ways to prepare for an exit
- Common mistakes to avoid as ecommerce sellers
Watch the replay here: https://www.facebook.com/amazingathome/videos/692526788814150
Meghla Bhardwaj, Founder of India Sourcing Network
People should join the 7 Figure Seller Summit because it is being hosted by [Gary]. He is a seller [himself], and he understands the challenges that sellers face. And he really has a good understanding of how sourcing works and how ecommerce works, and how Amazon works.
So there is no better host than [Gary] to do a conference because he knows the right questions to ask and he knows the right people to get on the summit.
Chris Davey, 7 Figure Seller:
I attend a lot of Amazon conferences and there are always so many little diamonds of information that can help take your business to the next level.
The beauty here with the virtual conference is you can watch that content over and over until you fully understand how to implement into your business
Tim Jordan, 7 Figure Seller:
There’s a lot of content out there that sucks. But Gary seems to be bringing together some really good stuff that it’s relevant and updated because the world of ecommerce continues to evolve constantly.
So if you’re not staying up to date with good current information, you’re probably getting left behind.
Sharon Even, 7 Figure Seller:
You have a lot of value. The 7 Figure seller summit has a lot of serious sellers, very well known sellers, who are not only sellers, but people that are very credible and very respected in the industry. So there is a ton of value there. And you put a lot of time into it. That’s why you should join.
Chris Rawlings, 7 Figure Seller:
It’s a good mix of people who are kind of well known and have a consistent message to deliver, and other people who are not well known, because they don’t speak, they don’t teach they just do it.
Gary is in a position to be able to find these people and get them to spill the beans. So I’m really really excited about this. Thank you Gary for putting this together.
Here are some things you may have missed from last week:
- Big Demand for Corrugated Boxes and Other Packaging
- Amazon will launch Amazon EGYPT in 2021
- Selling Your First Business: A Guide For FBA Sellers (Sponsored by Thrasio)
Have a great weekend!