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Inflating Amazon Logistics Costs 📦 - how we're managing

Inflating Amazon Logistics Costs 📦 - how we're managing

February 04, 2022

Dealing with inflating logistics costs at Amazon

Hi everyone,

Happy new year!

January brought a huge surge of volume on Amazon - the largest month in Cartograph history and an even larger spike than the past two Januarys. In addition to New Year’s Resolutions, we think rising Omicron cases and severe weather throughout the country brought this demand.

January wasn't all good news, however. Amazon increased their fulfillment fees on Amazon, and removed a critical dimensional weight exemption that many CPG brands used to increase their margins and competitive on the platform.

We've been working through this with our clients. Increasingly, a question comes up as costs rise across the industry: how can I stay profitable on Amazon and in eCommerce? We've outlined the changes as well as our framework for managing logistics costs in the attached PDF below.

Some highlights:

🦐 Ideas to shrink your product to a lower cost shipping tier, including Amazon's revamped Small and Light Program
🎭 How to get around price matching to other retailers if you need to raise your prices
🚍 Risks of falling into Amazon's Oversize tier - more than just cost

Dealing with inflating logistics costs at Amazon (click to open PDF)

As always, please reach out if you or anyone you know would like to chat. Always willing to brainstorm on how to improve the Amazon approach with anyone in the industry.

Chris Moe and Jonathan WillbanksCo-founders, Cartograph

PS - looking forward to seeing you at Expo West in just a month!