[Crew Review] Amazon has a ‘solution’ to your storage problems

Expansion

Amazon will launch a pay-as-you-go warehousing service next year, hoping to provide third-party marketplace sellers with a “low-cost, long-term” storage solution moving forward—but as with all things Amazon, there might be a catch.

Will this replace your 3PL?

Pharmapacks Files for Bankruptcy

Pharmapacks (also known as Packable) has filed for bankruptcy one week after it announced that it will be ceasing operations following a failed SPAC attempt and being unable to go public.

For years, the company was among the Top 100 Amazon Third-Party Sellers and it boasted an estimated revenue of $450 million. Questions on whether other big Amazon aggregators and resellers face the same doom arose shortly after the announcement, and smaller Amazon DTC brands may be in trouble, too.

Amazon’s Fees Up 30% Since 2020

Marketplace Pulse reports that Amazon fulfillment fees are up 30% since 2020. Barely two weeks ago, Amazon also announced a fee hike for the upcoming holiday season effective mid-October up to January of next year. It cites surging inflation as the main reason for the fee adjustments.

Soaring fulfillment fees affect the majority of third-party Amazon sellers, as most of them depend on Amazon FBA to fulfill orders. Rising costs could spell lower profitability for Q4, which has historically been the highest-demand quarter where sellers face cutthroat competition over the coveted Buy Box.

Walmart Invites Canadian Sellers to Its Marketplace

Brick-and-mortar giant Walmart will hold its Virtual Global Seller Summit - Canada this September 8th, which is essentially an invitation to Canadian ecommerce sellers to expand into its thriving online marketplace.

More than 50% of Canadian Amazon sellers earn upwards of $50,000 in annual revenue, and Walmart seems to be leveraging the Canada-US-Mexico free trade agreement (CUSMA) as well as its solid supply chain infrastructure to incentivize participating sellers.

In the past, Walmart has made significant moves to entice third-party sellers based outside the US to join its marketplace. Last year, it opened its marketplace to non-US vendors by removing US business tax ID and address requirements, effectively making its ecommerce platform a solid second option for international Amazon sellers.

Meta Wants a Slice of Indian Ecommerce Pie

Meta has joined forces with Indian ecommerce company JioMart to enable customers to shop groceries using its WhatApp chat mobile app.

While this is Meta’s first ecommerce service in the region, US-based giants Amazon and Walmart already have respective footholds in the Indian ecommerce market. The former is planning to build an inhouse logistics division in the country to enable faster deliveries, while the latter owns and operates Flipkart, one of the biggest online marketplaces in India.

Competition among Western ecommerce players over the Indian ecommerce market coupled with recent developments in cross-border ecommerce facilities could mean more opportunities for US-based third-party sellers in the near future.