Amazon FBA Seller News – May 10th, 2019

Amazon News Roundup, Volume 4

Seller chatter

Sellers are feeling the effects of the US-China trade war, with many already seeing steep increases in tariffs. Here’s what they’re saying:

“I am getting hit bad. My original quote for shipping [Free On Board] was 1200$ now after the tariffs its 2100$ 🙁” – Mohammed

“Everything I import was on the list that went to 25% tariff last night. I have $10k in product sitting at a port in China ready to sail on May 14 that missed the cutoff point of midnight and will incur the tariff when it arrives. Not much I can do at this point – it is what it is. Just have to analyze and include it in future product research 🤷‍♀️” – Lisa

We too are feeling the pinch. In a recent email sent to us by our freight forwarder, Flexport, we were informed that several of our products will be impacted by the increase:

This is the link referenced above:

• 301 Tariffs

A word of advice…

In moments like these, there is no cause for alarm. Inevitably, consumers will end up bearing the cost of the increase. The hikes will likely result in higher prices.

That being said, there are a few things you can do proactively to curtail the impact of the skyrocketing tariffs:

• Renegotiate pricing with your Chinese suppliers; they should be willing to work with you as they don’t want to lose your business.
• Start price wars with your competitors.
• Use other global manufacturers to avoid having to pay these tariffs.

And in case you haven’t seen it, we have an excellent blog post that exclusively covers the trade war’s new tariffs. Check it out and let us know your thoughts.

Another option

But if you’re already feeling the heat of the increased tariffs, you can always apply for an exclusion. There’s no guarantee that you’ll be approved, however, based on what we’ve read, it seems like a simple application process.

To shed some light onto how the program works, please check out the following resources:

• Section 301 Trade Remedies Frequently Asked Questions
• Procedures to Consider Requests for Exclusion of Particular Products (this starts at bottom of page one)

Also, after looking at the rulings of some submissions, the overarching themes around products granted exclusion were:

• the 25% duty increase will have a detrimental impact to the seller’s business;
• the item can’t be sourced outside of China at a similar cost and lead time;
• or, the seller owns the mold in China, and is unable to recreate it somewhere else.

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Amazon FBA news this week

Need to know for Amazon FBA Sellers

1. The US just raised tariffs on Chinese goods. China says it will hit back – CNN
2. Trump says tariffs on $200 billion of Chinese goods will increase to 25%, blames slow progress in trade talks – CNBC
3. A startup is making it easier for Amazon’s sellers to fulfill orders, and it’s a hint at how one-day shipping could become a reality – Business Insider

Also of interest:

1. Amazon just launched a lending service in China while shuttering its local marketplace – CNBC
2. Amazon says small business owners make $90,000 a year from selling in its stores – USA Today
3. Why analysts say FedEx may benefit from free one-day Amazon Prime shipping – Commercial Appeal
4. Amazon merchants hit by extensive six-month fraud – Fortune
5. Amazon can already ship to 72% of US population within a day, this map shows – CNBC

Anything we missed?

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