EcomCrew - Shippageddon 2.0? [Crew Review]

Buildup

Hey Reader,

In today’s edition of weird Amazon news, a Chinese seller recently hijacked the listing for The Hobbit and replaced its item details with those of a prostate massager (The Hobbit and an adult toy. There’s a joke in there somewhere).

Amazon seems to have already addressed the issue as we’re sending out this Crew Review, but this begs the question: If hijackers can target high-profile listings like one of the best selling books of all time, how exposed are small sellers to this threat?

Read the full story here.

Amazon Needs More Info

In a policy announcement, Amazon will now require all product listings for the Product Types listed on the price per unit requirements table to include the unit_count and unit_count_type attributes, e.g., “5” and “Ounce.”

As expected of Amazon, the announcement provided no particular steps, but we’ve got you covered:

1. Go to Manage Inventory
2. Click Edit for the ASIN
3. Make sure Advanced View is on
4. Go to “Vital Info”
5. Scroll down to “Unit Count” and “Unit Count Unit of Measure”

You might want to mark September 30, 2021 on your calendar, because Amazon says that new listings or updates to old ones submitted without unit count information will no longer be accepted after this date. This includes all product-level data submissions, whether through excel templates, Seller Central, or feeds.

The Second Shippageddon

You just know it’s bad when it gets its own name.

Just as many of us feared, the shippageddon will potentially continue well into 2022.
 

According to Forbes, the confluence of factors affecting the logistics industry caused major stockouts, longer lead times, and less overall discounting during Q4 last year, and the situation could be just as bad going into Q4 of 2021.

Of course, we all know this shipping crisis trickles down to third-party sellers, with Amazon restricting how much inventory sellers can send in and actually hold in their warehouses, to alleviate its own crunched supply chain.

If your business depends on a strong Q4 and you’re not already prepared at this point, buckle up.

It’s Not All Bad

Despite the current logistics nightmare, Amazon is getting along just fine.

In a report, the NY Times says that more people now buy stuff on Amazon than on Walmart, giving the ecommerce giant another big victory against the undisputed king of brick-and-mortar.

This is largely because of the third-party seller ecosystem, which Amazon says is growing much faster than its own retail business.

Consequently, Amazon is now the biggest retailer outside of China, which could bring in its own problems, like worsening the current antitrust pressure it’s getting from Congress. But we’re not complaining.

From One Business to Another

So much for Amazon now officially being the biggest retailer in the US, the company also has its eyes set on another feat—to become the biggest logistics provider in the world.

How does 400,000 drivers, 40,000 trucks, and a fleet of over 70 cargo airplanes sound?
 

According to CNBC, Amazon has grown in shipping capacity by over 50% year over year, the end view seemingly becoming the next big player in third-party shipping. In other words, to directly trade blows with the likes of FedEx and UPS.

As of 2021, Amazon now delivers over 72% of all its packages on its own without relying on third-party services, not to mention that nearly 80% percent of all US households now live within an hour of an Amazon warehouse.

This push by Amazon won’t likely put FedEx and UPS out of business (yet), as those two offer a wider array of services, but it seems that Amazon might dominate retailer-to-consumer routes sooner rather than later.

This also means that customers are more likely than ever to receive Amazon boxes for orders that they made on, say, Walmart or Ebay. That's not exactly a pleasant surprise, what with a lot of sellers trying to escape from Amazon’s clutches.

An Online Gold Rush

As the FBA aggregator space continues to balloon (It’s now being pegged as a billion-dollar industry), we’ve started talking to some of the big names in the space to peel back the curtain and show you what the actual process looks like when selling your business to an FBA rollup.

In Episode 406, we talk to Jake of Acquco about what they look for in brands, and why they manage to give away Teslas to people who successfully refer ecommerce business that they can acquire.

If you don’t have one yet, now is as good a time as any to craft a solid exit strategy.

In Case You Missed It

We’ve recently launched From 0 to 100: Amazon for Absolute Beginners, a full-length video course tailored to those who want a no-nonsense guide to succeeding as an Amazon FBA seller.

Aside from the 20+ lessons in glorious HD and detailed walk-throughs, this course package also includes 3 exclusive live webinars with Mike and Dave.

You can already access the recording for the first two. And if you sign up now, you can join the final live webinar on September 16, 2021 at 10 AM (PST).

Access the course here.