Tips To Save Money On Your Amazon Product Shipment and Logistics

Introduction

In this episode of the Helium 10 podcast, host Bradley Sutton interviews global supply chain logistics expert, Brock. The conversation dives into essential strategies for Amazon sellers, especially in preparation for the fourth quarter (Q4). With changing dynamics in the e-commerce landscape, Brock shares insights on saving money on logistics, optimizing shipping practices, and expanding into new marketplaces.

Key Changes in Logistics Since Last Year

Brock highlights significant changes in the logistics world since his last appearance. Prices for international shipping have increased dramatically, with full container prices rising from lows at around $ 1,500 to an average of $ 5,000 to $ 5,500. Factors such as shipping line cancellations and supply imbalances have created chaos in the market. Furthermore, new players like TikTok Shop and Timo are entering the marketplace, impacting Amazon sales dynamics.

Amazon's New Fees and Seller Adaptation

Amazon has implemented various new fees, including inbound placement fees. This has pushed sellers to rethink their shipping strategies. Brock notes that many sellers have had to adjust their practices, such as maximizing shipment sizes to avoid these fees. However, there have been frequent discrepancies, with Amazon sometimes redistributing shipments in ways that don't align with seller expectations.

He emphasizes the importance for sellers to review their FBA fees and consider alternatives like Fulfilled by Merchant (FBM) to mitigate the impact of rising costs. Utilizing a 3PL to manage inventory and shipping can help avoid the high storage costs that come from holding inventory at Amazon’s fulfillment centers.

Preparing for Q4 Success

As sellers gear up for Q4, Brock urges them to take Amazon's deadlines for inventory shipping seriously. With increased holiday fulfillment fees and constraints on storage capacity, sellers must plan their shipments in advance. Seasonal products can be particularly challenging, as many sellers find themselves with inventory that they cannot send to Amazon’s fulfillment centers due to space limitations.

Moreover, Brock stresses the importance of understanding your landing costs and identifying ways to save on shipping. This might include an audit of the current logistics strategies and examining FBA fee structures.

Exploring New Marketplaces

The e-commerce landscape is evolving, and Brock advises sellers to explore multi-channel strategies, including TikTok Shop and other platforms. While Amazon remains a dominant force, diversifying sales channels can enhance profit margins and reduce reliance on a single marketplace. He suggests that having both FBA and FBM options available, as well as considering selling through your own website, can open new avenues for revenue growth.

Brock concludes that optimizing every aspect of the supply chain could deliver substantial savings, encouraging sellers to work closely with experts to refine their strategies and improve overall business health.

Keywords

Logistics
Amazon FBA
Amazon FBM
Shipping Costs
Supply Chain
Q4 Preparation
Marketplaces
E-commerce
Inventory Management
Freight Forwarders

FAQ

1. What are the benefits of using Fulfilled by Merchant (FBM) instead of Fulfilled by Amazon (FBA)? FBM allows sellers to manage their own shipping and can often be less expensive than FBA, particularly for larger items or when sales become more price-sensitive.

2. How can I save money on shipping costs? Consider auditing your FBA fees, optimizing shipping sizes, and utilizing a 3PL to manage inventory efficiently.

3. What are the key deadlines for shipping to Amazon before Q4? Sellers should plan to send their inventory as early as possible, ideally well before the October deadlines set by Amazon for holiday fulfillment.

4. Should I focus solely on Amazon for selling my products? Diversifying into other marketplaces and setting up your own website can be beneficial, especially as competition in e-commerce increases.

5. What strategies can I implement to better manage my logistics? Regularly review your landing costs, compare freight costs with other providers, and look for ways to lower your inventory storage fees to improve your efficiency and profitability.