Amazon adjusts FBA seller library limits
YCD News, recently, Amazon released an announcement that it will adjust the warehouse capacity limit for FBA sellers to prepare accordingly for the coming peak season.
The announcement shows that in accordance with the practice of previous years, Amazon’s distribution center team will focus on the receiving process in September and October to ensure that sellers’ products can be placed in the correct distribution center. And in November and December, Amazon will focus on processing customer orders to ensure faster delivery and boost sellers’ sales potential.
Since Amazon implements this way of managing its operations during peak seasons, most sellers find that they will have more inventory capacity in October, while it becomes less in November. Amazon further stated that on average, November’s library capacity is expected to provide sellers with enough storage space for the next six months of sales.
In the announcement, Amazon also advised sellers to prepare well in advance as a way to ensure that their shipments will arrive by October 26, 2023. This way, Amazon can complete receiving on time and have it ready for delivery by Black Friday. If sellers need extra capacity, they can also use Capacity Manager to request additional warehouse capacity from Amazon.
As soon as the announcement was made, some sellers breathed a sigh of relief that they could stop worrying too much about missing out on peak season sales due to a lack of capacity in their own warehouses.
In the peak season, the expansion of the warehouse capacity can to a certain extent to ensure the safety of the product inventory, as far as possible to minimize the seller due to out-of-stock caused by the loss of traffic caused by a series of problems. But there are still many sellers said refused to accept the “good” application from Amazon:
YCD learned that before this announcement was issued, there are indeed sellers up a lot of storage capacity: “Yesterday is still not enough for the storage capacity and agonized, today up to see, the storage capacity has risen by about 5 times.” In this regard, there are sellers spicy comment, “Why give you up the capacity? It is not because the shipment is now shipped to the past, and so on to the goods received is three times the peak season peak storage fees, cunning Amazon just.”
In addition to the sellers to face the difficult problem of storage capacity, but also bald in the frequent occurrence of Amazon warehouse problems. Previously, affected by the extreme weather in the United States, there are a lot of Amazon warehouse outages, the current recovery work in slow progress, but inevitably the seller’s goods on the shelves of the time limit will be affected to a certain extent.
In addition, sellers also need to face the problem of logistics costs are about to rise further.
Several logistics companies announced peak season surcharges
YCD news, on August 28 this year, FedEx released the 2023 peak season surcharge adjustment program. It is understood that the new surcharge will start from October 2, the price increase involves a number of aspects, such as additional handling surcharge, oversized parcel fees, residential delivery surcharge, ground unauthorized parcel fees and a surcharge applicable to FedEx Ground economic transportation services. It can be said that the price increase will be implemented into all aspects of each logistics service.
And UPS’s collection of peak season surcharges will begin on October 1, and its collection of surcharges increased tremendously. Transportation within the United States, for example: the current need for “additional processing” parcel attachment fee of $ 3.50 / per piece, and during the peak season this cost to $ 6.90, an increase of nearly 100%.
It is worth noting that, in addition to the announcement of the peak season surcharge collection program, FedEx and UPS coincidentally announced that it will start from next year a comprehensive increase in parcel rates, sellers will face a series of problems brought about by the further increase in logistics costs.
YCD has learned that the rates for FedEx’s U.S. domestic services as well as U.S. import and export services will rise by an average of 5.9%. And the freight rate adjustment of FedEx Freight is in the range of 5.9% to 6.9%, and the specific cost will be determined according to the transportation rate table. In addition to this, FedEx’s customs clearance service fee will also be increased from January 1, 2024 onwards.
Not coincidentally, UPS also made an announcement that effective December 26, 2023, the overall parcel rate will increase by 5.9%. However, like FedEx, UPS did not announce specific rates, but only an overview of the overall rate increase.
Overall, with the successive price hikes by logistics companies, sellers’ logistics costs are likely to increase further.