The June Logistics Manager Index (LMI) report indicates a strong continued growth momentum in the logistics industry, with the LMI value reaching 60.7. Key drivers include inventory levels and transportation utilization. However, uncertainty surrounding high inventories and trade policies poses challenges to sustaining future demand growth.
Amazon has increased several fees, including Multi-Channel Fulfillment (MCF) fees, monthly inventory storage fees, storage utilization surcharges, and aged inventory surcharges. Sellers need to refine inventory management, diversify sales channels, optimize product selection strategies, and improve operational efficiency to cope with cost pressures and achieve sustainable development. This includes carefully monitoring inventory levels, exploring alternative fulfillment options, and focusing on high-demand, fast-selling products to minimize storage costs and avoid aged inventory fees. A proactive approach is crucial for maintaining profitability.
This article provides an in-depth analysis of Amazon FBA inventory storage duration and the standards for Long-Term Storage Fees (LTSF), highlighting the high cost risks associated with aged inventory. It details the automatic removal policy, LTSF calculation methods, and proposes strategies such as optimizing inventory turnover and promotional clearance sales. The aim is to help sellers effectively manage FBA inventory and reduce operating costs by avoiding LTSF and improving inventory health. Proper planning and execution are crucial for mitigating these fees.
Amazon faces supply chain challenges stemming from labor shortages, actively addressing the issues by adjusting inventory levels, increasing wages, and implementing automation. The company is committed to ensuring a positive customer experience by investing in technology and infrastructure to build a more resilient supply chain system, laying the foundation for future growth. Amazon's response strategies offer valuable insights for other businesses navigating similar challenges.
eBay, as an open e-commerce platform, presents both advantages and challenges in the B2C model. Merchants need to understand the platform's characteristics and address challenges related to competition, rules, logistics, and more to succeed. Understanding eBay's specific policies and optimizing listings for search are crucial. Effective inventory management and reliable shipping are also essential for maintaining a positive seller reputation and achieving sustainable growth on the platform.
This article analyzes the challenges faced by cross-border logistics in the lead-up to Amazon Prime Day, including rising shipping costs, surging demand, and increased last-mile delivery expenses. It provides sellers with strategies to cope with these challenges, such as early planning, comparing prices across multiple channels, and optimizing inventory management. By implementing these tactics, sellers can better capitalize on the opportunities presented by Prime Day.
The Cass Freight Index reveals declines in North American freight volume and expenditures year-over-year and month-over-month in November, indicating challenges to economic recovery. The report analyzes key factors impacting the freight market, including macroeconomics, inventory levels, retail activity, and energy prices, and provides an outlook on future opportunities and challenges. It recommends that freight companies optimize operations, diversify services, and strengthen customer relationships to navigate market fluctuations.
New USPS regulations present challenges to cross-border e-commerce, including extended delivery times and increased shipping costs. Sellers should adopt strategies such as tiered shipping options, multi-warehouse inventory, and optimized packaging to mitigate these impacts. Furthermore, strengthening communication with logistics providers and enhancing customer service are crucial. By proactively addressing these changes and focusing on product competitiveness, sellers can turn these challenges into opportunities for growth and improved efficiency.
The Logistics Manager's Index (LMI) for June highlights a recovery in the logistics sector, reaching 60.7 after two consecutive months of growth. Rising inventory levels and costs are key driving factors. Additionally, warehousing capacity has entered contraction territory for the first time, indicating a landscape where challenges and opportunities coexist.
US retail import volumes are projected to remain high, but with a decelerating growth rate. Supply chain challenges persist alongside inflationary pressures, requiring retailers to diversify their supply chains, optimize inventory management, improve operational efficiency, and embrace digital transformation. These strategies are crucial for enhancing resilience and navigating market uncertainties.
