AMAZON NEWS: THE AMAZON ANALYTICS INSIDER JULY 2023
Your biweekly resource to staying informed on the news and obstacles currently affecting other vendors and sellers. Stay attuned to potential changes that might affect your business and focus on recommended reports, chosen in light of current events in order to empower your data-driven decisions.
TL;DR
A looming UPS strike had FBM sellers worried about potential shipping delays and higher fees, but a tentative agreement was reached on Tuesday July 25th.
Amazon sellers are disappointed that UPS partnered discount shipping rates have disappeared, leading to rates increasing by a minimum of $2. Amazon is looking into this issue, and sellers hope that the discount will become available again in the near future.
The USPS is rolling out a new shipping program called Ground Advantage, which offers faster delivery and more affordable rates based on cubic pricing. It is not yet available through Amazon Buy Shipping, however it is available on other platforms.
Teamsters union & UPS reach tentative agreement
Many sellers have been worried about word of a looming UPS strike. This is because the previous contract between UPS and the Teamsters Union was set to expire next Monday, July 31st. Due to wage stagnation, benefit cuts, increased workload and unfair treatment, The Teamsters union threatened to strike if a deal could not be reached with UPS.
Speak of this looming strike left FBM sellers in a worried frenzy, as many purchase UPS shipping via Amazon, and would run the risk of potential late shipments or they could be forced to be at the hand of higher fees and unpredictable shipping times via USPS or Fedex. A tentative agreement was reached on Tuesday July 25th, resulting in wage increases for full, and part time workers, and improvements to employee benefits, however many sellers are still unsure about whether this no-strike guarantee will hold.
UPS Fee Changes for FBM Shipping
Source: 1
This past week sellers have been quite distraught after finding out that the UPS partnered discount shipping rates they grew accustomed to have disappeared. This resulted in all shipping rates increasing by a minimum of $2.
This is most likely related to previous threats of the UPS strike. Amazon is reportedly looking into this issue, and we hope that in light of the strike being called off, this discount will become available for sellers again in the near future.
USPS Ground Advantage begins September 30th
The USPS is implementing a new shipping program called USPS Ground Advantage. The program replaces three other current shipping programs and will offer faster two-to-five business day delivery, free package pickup, and $100 insurance.
Shipping rates should be more affordable for most sellers because this new program will determine shipping cost based on cubic pricing rather than just weight alone. This isn't available for sellers yet through Amazon Buy Shipping, which is frustrating because many sellers report that this is available through other platforms. Hopefully amazon provides more updates soon.
Recommended Report: Order Fulfillment
Subscribe below to get insights delivered directly to your inbox.
One email, every two weeks.
