Amazon official U.S. station recently announced a series of adjustments on logistics costs and sales commissions, which is the most notable than the rise in FBA delivery fees. This adjustment is undoubtedly a considerable blow to sellers of large items, then, in the face of this situation, large sellers how to choose?
First of all, let's understand the specific content of this fee adjustment. Starting from February 5, 2024, the size segments and fees on the US site will be updated. Under the new rules, small standard sizes will be measured in 2-ounce intervals, while large standard sizes will be measured in 4-ounce intervals. (These changes do not apply to apparel items.) Additionally, the small, medium, large, and specialty large segments will be replaced with new large large and oversize segments that have new weight and size definitions. Please refer to the following table for specific size segment definitions.
In the face of this situation, large item sellers need to revisit their business strategies to meet this challenge. The following are some possible responses.
1. Optimize product weight and size:First of all, sellers can consider optimizing the weight and size of their products to reduce logistics costs. Reducing unnecessary weight and volume through reasonable packaging design and material selection can effectively reduce distribution costs.
2. Find other logistics channels: If sellers can not optimize the weight and size of the product, or the optimization effect is not obvious, you can consider looking for other logistics channels. For example, you can choose other FBA alternatives, such as the use of U.S. Postal Service, UPS or FedEx courier companies for delivery. Or consider using overseas warehousing services to store products close to consumers to reduce transportation costs.
3. Increase product selling price:If sellers are unable to reduce costs by optimizing the weight and size of their products or finding alternative logistics channels, then increasing the selling price of their products may be a viable option. However, this measure may reduce consumers' willingness to buy, so sellers need to consider carefully to ensure that the increase in price is reasonable.
4. Expand sales channels: In addition to the Amazon platform, sellers can consider expanding other sales channels, such as self-built independent station, open stores in other e-commerce platforms or carry out offline sales. This can increase the diversity of sales channels and reduce the dependence on a single platform, thereby reducing the impact of logistics costs.
5. Strengthen cost control:In addition to optimizing the weight and size of products, looking for other logistics channels, increasing selling prices and expanding sales channels, sellers can also strengthen cost control to deal with rising costs. For example, measures such as optimizing the procurement process, reducing inventory costs and improving production efficiency can help reduce overall operating costs.
