Amazon’s decision to freeze referral and Fulfillment by Amazon (FBA) fees for 2025 in the US has been met with mixed reactions, and a closer look suggests that this move may be more self-serving than it appears on the surface. A slew of new fees were already introduced in the first and second quarters of 2024, which squeezed Sellers to the max, so one could argue there’s nothing left to get.

New charges in 2024 included inbound placement fees, low inventory fees, and aged inventory fees. Sure, inbound placement fees were waived if Sellers split the inventory into several inbound shipments themselves and shouldered the burden of the added labor and freight costs. But the costs weren’t waived, just shifted. The fees were introduced to enable Amazon’s shift from a single, national fulfillment center to a regionalized network of 8 fulfillment centers intended to position inventory closer to the customer for faster delivery. The new model requires the positioning of more inventory in more locations, hence the latest fees. So, while Amazon now positions itself as easing the burden on Sellers, the freeze comes after Amazon has lowered its cost of doing business at the expense of third-party Sellers.

The freeze’s timing appears less of an act of generosity and more of a calculated pivot necessitated by external pressures. With limited room left to increase fees without alienating its Seller base, Amazon is using the 2025 strategy to fortify its dominance while attempting to stave off competition from emerging rivals like Temu, which is aggressively recruiting US-based Sellers and Temu is challenging Amazon’s dominance in the budget-friendly market segment.

To its credit, Amazon will be reducing inbound placement fees for certain large and bulky items, with the average decrease being $0.58 per unit, starting January 15, 2025. It will also introduce incentives to encourage Sellers to launch new parent ASINs that qualify for the FBA New Selection Program, such as waived inbound placement fees for up to 100 inbounded units per product from now through March 2025.

With discretionary spending under strain, household staples and personal care items are expected to drive sales in 2025. By incentivizing Sellers to stock these categories and products that Amazon identifies as essential or underrepresented in its catalog, Amazon ensures a robust selection for consumers while positioning itself for continued growth. Amazon’s focus on essentials is part of a broader strategy to ensure its platform remains indispensable. While framed as a benefit to Sellers, the program serves Amazon’s interests by enhancing its marketplace’s appeal to price-conscious consumers – a demographic likely to grow significantly amid economic pressures such as inflation and higher tariffs.

However, let’s not forget that third-party Sellers will ultimately gravitate toward platforms that attract consumers, making Amazon’s efforts as much about retaining customer trust as Seller satisfaction.

Reactions from industry observers suggest cautious optimism. Observers like Eva Hart from Jungle Scout have praised Amazon’s decision as a “welcomed pivot toward easing seller costs.” In contrast, others, such as Tyler Wallis of TripleLine, have urged Sellers to seize this opportunity for strategic planning.

Summary

Amazon’s 2025 fee strategy for third-party Sellers reflects a carefully orchestrated effort to ensure continued growth and self-preservation rather than altruism. The freeze and accompanying incentives are less about easing Seller burdens and more about aligning Sellers’ efforts with Amazon’s strategic goals. As rivals like Temu gain traction despite the launch of Amazon Haul, Amazon’s latest move underscores its reliance on a model that shifts the operational and financial pressures onto Sellers while safeguarding its margins and market share. For many Sellers, though, the freeze offers a momentary reprieve that allows them to shift focus from managing costs to seizing opportunities for new growth.

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Protect Your Amazon Listings from Search Suppression, Hijackers, and Stockouts

Amazon is a competitive platform. You need to have a quality product, excellent listing content, and plenty of reviews to catch the attention of busy

The U.S. Consumer Product Safety Commission (CPSC) has recently taken decisive action against Amazon regarding hazardous products sold through its platform. In a unanimous decision, the CPSC ruled that Amazon is a “distributor” under the Consumer Product Safety Act (CPSA), thereby making it legally responsible for defective and/or dangerous items sold by third-party Sellers via its Fulfilled by Amazon (FBA) service. Amazon must notify purchasers and the public about the hazards, offer refunds or replacements, and take remedial actions to remove the dangerous products from consumers’ homes (recalls).

This ruling affects over 400,000 potentially dangerous products, including malfunctioning carbon monoxide detectors, unsafe hairdryers, and children’s sleepwear, violating flammability standards.

What it Means for Third-Party (3P) Sellers

Amazon will not want to be held responsible for any damages caused by products fulfilled by FBA nor the subsequent lawsuits and claims filed against them. So we expect a mass cleansing of the product catalog, which can be deleterious for Sellers of such products. Still, this shift could benefit Sellers who already comply with safety regulations, as non-compliant competitors might face removal, improving the marketplace’s overall safety, trustworthiness, and profitability. However, it also means that getting new products vetted and approved for sale on the marketplace could get more complicated and time-consuming. Carriers such as UPS, FedEx, and USPS have issued new and updated guidelines on hazmat shipping.

The Rub

If a Seller’s products are unsafe, Amazon may swiftly remove them from the marketplace and halt sales. The enforcement of such policies could hurt third-party Sellers who might unknowingly sell non-compliant products, leading to loss of revenue and damaged reputation.

Amazon already has an Unsuitable Inventory Policy that aims to crack down on items considered unsafe, illegal, or otherwise unsuitable for sale on the Amazon platform to protect customers’ safety and maintain trust. This new action by the CPSC is a natural extension of Amazon’s existing philosophy, but making it mandatory rather than simply accepting that Amazon’s self-imposed and self-regulated policy is sufficient to protect consumers from dangerous goods. The Unsuitable Inventory Policy has recently impacted hundreds, possibly thousands of FBA Sellers. Seller Accounts have been deactivated, and Amazon seized and/or disposed of much of the inventory, taking a guilty-until proven-innocent approach. Without the inventory in hand, these Sellers aren’t able to sell on non-Amazon channels, effectively destroying businesses. For Sellers knowingly violating the FBA policies, that’s the risk they took. For Sellers forced into insolvency through no fault of their own, it’s scary to appreciate how much power Amazon has and how little recourse Sellers have.

Seller Agreements Will Need to Evolve

Sellers will likely receive more explicit guidelines on product safety requirements and recall procedures, ensuring they know exactly what standards they must meet to avoid penalties or product removal.

Perhaps more importantly, Amazon may raise fees for storage, fulfillment, and compliance management to offset the cost of stricter safety oversight. Sellers using the FBA service could see higher operating costs as Amazon enforces more rigorous processes. Smaller Sellers might struggle with the increased compliance costs and operational burdens, potentially risking their livelihoods.

Have a Plan to Mitigate Risk

To be unequivocally trusted by consumers and avoid unscrupulous activity, Amazon has historically taken a shoot-first and ask-questions-later approach to anything that could damage its customer relationship. This allows Amazon to arrest harmful activity while investigating situations and resolutions implemented.

While a reasonable strategy for consumers, it can be brutal to the business health of brands and resellers selling compliant products. However, it is unfairly included in adverse actions taken by Amazon. To ensure business continuity, Sellers should have alternative fulfillment strategies in place, even if dormant, that can help mitigate these risks. This new ruling does not govern seller-fulfilled orders because Amazon is not the ‘distributor’ for non-FBA fulfillments.

One example would be to have the warehouse infrastructure, inventory, and staff available that can take over the fulfillment of Amazon orders in a pinch (it is this author’s opinion that ALL Amazon 3P Sellers should be selling FBM, Fulfilled by Merchant, aka MFN, Merchant Fulfillment Network because it increases sales by increasing discoverability of products).

If in-house operations are not feasible, partner with a highly rated 3PL or 4PL to quickly ramp up Amazon FBM fulfillment. Third-party logistics companies can often receive inventory faster than FBA and cost less, besides having far fewer hassles. 

If the Prime badge is important, partner with a fulfillment services provider that can support the Seller Fulfilled Prime (SFP) Fulfillment Program.

Consumer Protection is the Focus

The decision is rooted in consumer safety and aims to prevent dangerous products from reaching consumers, but it also establishes Amazon’s accountability to help remediate the situation when they do.

And while this new ruling signals a shift toward greater scrutiny of online marketplaces and their role in ensuring product safety, it’s also a wake-up call for all Amazon Sellers. It’s not just about avoiding penalties—protecting your customers and building a sustainable, trustworthy business and brand.

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Protect Your Amazon Listings from Search Suppression, Hijackers, and Stockouts

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Amazon has introduced Amazon Haul, a mobile-only shopping platform offering ultra-low-cost, unbranded goods directly from Chinese manufacturers. This bold move not only challenges established competitors like Temu and Shein, which have tens of millions of monthly active users but also stands in stark contrast to Amazon’s traditional focus on rapid delivery (fast and free), as it embraces affordability and a distinct shopping experience for value-conscious consumers.

The Mechanics of Amazon Haul

Amazon Haul operates with a unique business model designed to sell low-cost products to U.S. consumers. By leveraging the $800 duty-free import threshold (aka de minimis), the platform enables products to be shipped directly from China without incurring tariffs. Shipping for orders over $25 is free. Smaller purchases include a nominal $3.99 fee. Delivery times range from one to two weeks, a marked shift from Amazon’s typical emphasis on fast delivery.

The platform’s simple pricing structure reinforces its budget-friendly approach. Items are capped at $20 across nearly 700 categories, spanning clothing, electronics, household goods, and more. To motivate shoppers to make larger purchases, discounts of up to 10% are offered on qualifying orders exceeding $75. Meanwhile, storage and fulfillment fees are streamlined to maintain lean operations.

Competitive Strategy and Market Disruption

The launch of Amazon Haul underscores a direct response to the rapid growth of discount retailers like Temu and Shein, which are popular with younger, price-sensitive consumer demographics. By prioritizing affordability over branding, Amazon Haul captures shoppers who value cost savings over speed or traditional brand loyalty. This initiative leverages Amazon’s established relationships with Chinese manufacturers, particularly in Guangdong province, a region critical to its supply chain.

The absence of branding on Amazon Haul products represents a shift toward platform-based trust. Consumers are drawn to the low prices and Amazon’s reputation for reliability rather than the brand identities of individual sellers. This approach mirrors evolving consumer preferences, where price and peer reviews often outweigh the traditional brand value.

Implications for Domestic Online Retailers and Brands

Amazon Haul poses significant challenges for domestic retailers, as its ultra-low-cost model bypasses traditional retail and supply chain frameworks. By eliminating intermediaries and reducing overhead, the platform undercuts prices offered by U.S.-based companies. This dynamic risks exacerbating existing pressures on mid-market retailers, which may find their customer bases eroded by the appeal of budget alternatives.

The rise of a brandless marketplace shifts consumer expectations for established brands. Brands that previously relied on trust and recognition now face a stark choice: adapt to a competitive environment prioritizing functionality and price or risk losing relevance in an increasingly value-driven market. 

Economic and Political Factors

The sustainability of Amazon Haul’s business model hinges on broader economic and political dynamics. Proposed tariff reforms and increased scrutiny of duty-free import practices could significantly impact the platform’s cost structure. As U.S. policymakers consider tightening loopholes that allow duty-free imports under the de minimis threshold, platforms like Amazon Haul may face heightened regulatory and operational challenges.

Consumer Behavior and the Future of Retail

Amazon Haul’s success is rooted in shifting consumer behavior based largely on the younger demographic that it appeals to and significant inflationary pressures. Many shoppers now prioritize savings over convenience, embracing longer delivery times in exchange for substantial cost reductions. Again, this shift represents a broader transformation in retail, as value-driven shopping disrupts traditional paradigms of immediacy and branding.

The platform’s mobile-first design underscores its appeal to a younger, digitally native audience. With visually engaging elements such as emoji-enhanced promotions and interactive features, Amazon Haul is poised to captivate a demographic that is increasingly conducting smartphone transactions.

Environmental and Social Considerations

While Amazon Haul’s model delivers affordability, it raises questions about sustainability and ethical labor practices. Competitors like Shein have faced criticism for their environmental footprints, with annual emissions significantly exceeding recommended global targets. Amazon Haul’s reliance on direct-from-China shipping and low-cost manufacturing mirrors similar concerns, potentially inviting scrutiny from environmentally conscious consumers and advocacy groups.

Strategic Outlook

Amazon Haul is a calculated move to secure dominance in the competitive landscape of discount e-commerce. Its ability to coexist with Amazon’s primary marketplace, offering a contrasting value proposition, demonstrates its adaptability and foresight. By entering the ultra-low-cost segment, Amazon diversifies its appeal, addressing the needs of both premium and price-sensitive shoppers.

However, the platform’s long-term impact will depend on its resilience to regulatory changes and ability to balance affordability with environmental and ethical accountability. Should it succeed, Amazon Haul could help redefine global retail, setting a new benchmark for price-driven e-commerce.

Summary

The launch of Amazon Haul represents a dramatic departure from the company’s traditional rapid-delivery model. As the platform evolves, its implications for domestic retailers, global supply chains, and consumer behavior will likely shape the future of commerce. Whether as a niche offering or a transformative force, Amazon Haul underscores the company’s ability to redefine e-commerce. You can also listen to a recent podcast on Amazon Haul here.

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Protect Your Amazon Listings from Search Suppression, Hijackers, and Stockouts

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Ecommerce returns are painful for Sellers no matter which way you slice it. They drain attention and resources and directly impact the bottom line. Whether returns fraud is involved or not, which is where customers intentionally exploit customer-friendly return policies to get free or steeply discounted items. Many estimate that 20 – 30% of e-commerce orders are returned for one reason or another.

Online Returns are Really Expensive

For each returned item, Amazon Third Party Sellers have already absorbed the product cost and the cost of preparing and shipping the inventory from their 3PL provider to multiple FBA fulfillment centers. Then, after an order is received, there are referral fees, fulfillment fees, and storage fees. What’s left after all the other sunk costs is the profit margin. If a customer initiates a free (or significantly subsidized) return, the Seller is expected to eat the costs of the return shipping, product inspection, and subsequent inventory management, which hurts the profit margin or may even turn the sale into a loss.

It’s no wonder many Sellers just offer to let customers keep low-cost items rather than return them because, at a certain point, it doesn’t make sense to process the return and resell it. To help Sellers recoup some value from returns and to get an even larger share of the Third-Party Sellers’ wallet, Amazon has now opened up the FBA Grade and Resell program to all Sellers that use FBA in the US. 

Amazon FBA Grade and Resell Program

In the US and Europe last year (2023), nearly 368MM items were either resold on Amazon in Used Condition or otherwise liquidated or donated. However, the FBA Grade and Resell program that enabled this success story was only available to a few Brands. Amazon has now made the program available to all Sellers that use FBA in the US, enabling all Sellers to recover value from inventory that would otherwise be removed or discarded by automatically inspecting, grading, and relisting eligible returned products as “Used” on Amazon’s marketplace. The program is particularly beneficial for items that can no longer be sold in New Condition but retain significant market value.

Not all products are eligible for FBA Grade and Resell. Specific categories are excluded, including but not limited to consumables, dangerous goods (hazmat) and recalled products, gift cards, heavy/bulky SKUs, and products with an average sale price that exceeds $75 (the complete list can be found here). Additionally, items must be returned to ecommerce fulfillment centers that support the program, and Sellers can exclude specific ASINs from the program for any reason.

How the FBA Grade and Resell Program Works

Sellers first enroll in the Grade and Sell program through the Automated Unfulfillable Settings in Seller Central. Once enrolled, eligible customer returns that are unsellable as New are processed through different evaluation paths based on the product type. These paths include non-technical, technical, and specialty grading.

Amazon’s grading process is described as thorough and tailored to each product category. It may include checking for catalog accuracy, inspecting for packaging defects, damage, or cosmetic blemishes, validating functionality, checking accessories, and even memory wiping and factory resetting certain electronics such as laptops and cameras.

After evaluation, items are assigned one of four conditions: Used-Like New, Used-Very Good, Used-Good, or Used-Acceptable. Items that don’t meet these standards are graded as Unsellable. For items graded as Used, Amazon creates a new listing under the parent ASIN in the “New and Used” offers section, with the Seller remaining as Seller of record. They are eligible to become the Used Featured Offer (the default buy box for Used items) if the Seller’s offer meets the pricing and performance criteria and is managed the same way New items are managed, including advertising and pricing. The grading process can take several weeks and longer during peak seasons, so plan accordingly.

Sellers manage the pricing discount that applies to all Used SKUs in the program as a percentage of the New Condition offer price. For example, a Seller might set offers for Used-Like New SKUs as “85%” of the New SKU offer price, which is applied automatically when units are relisted. Sellers should actively manage their pricing strategy to ensure their Used items remain competitive while providing a worthwhile return.

Managing and Monitoring Used Inventory

Sellers have several tools available to help manage Used (graded) inventory. The most important is the Grade and Resell Report, which provides real-time updates on inventory status, including how many units are graded and ready for resale.

Sellers will appreciate that customer feedback and reviews for graded items roll up to the parent ASIN and do not materially affect Account Health Metrics, ensuring that Seller’s reputation is not negatively compromised due to poorly graded units.

FBA Grade and Resell Program Fees

Based on the item’s size and weight, sellers are charged a flat processing fee (from $1.50 – $4.10). However, items deemed completely unsellable remain in the Seller’s unfulfillable inventory and are not relisted nor processing fees charged. Sellers receive payouts for sold Used units just as they would for their New items, minus applicable fees. Amazon recommends enrolling SKUs with an average selling price above $15 to ensure profitability. Still, this guidance is highly subjective, and each Seller must monitor their eligible SKUs and adjust as necessary.

Benefits of the FBA Grade and Resell Program

There are several benefits of the FBA Grade and Resell program:

• Boost revenue: Recover value from inventory that would otherwise be a loss instead of removing/disposing returned items or selling them at a steep discount through liquidation channels by selling Used units to customers willing to accept them at a discount.


• Ease of Use: Sellers can automate submitting unfulfillable inventory into the Grade and Resell program, reducing the time and effort required to manage returned stock. Set it and forget it.
  


• Cost Efficiency: Sellers only pay a processing fee when an item is successfully relisted and can avoid paying to return or dispose of unsellable inventory.


• Faster time to market for Used: Units delivered directly to FBA fulfillment centers that support Grade and Resell compared to removing inventory, grading and prepping it externally, and then either Seller-fulfilling Used SKUs, or reinbounding to FBA


• Support sustainability: Reduce waste going to the landfill

Pitfalls of FBA Grade and Resell Program

• Imperfect humans resulting in poorly graded units: FBA employees may need to be more familiar with a product and what constitutes success criteria for passing inspection beyond the vague definitions provided in the condition guidelines. The subjective nature of the grading rubric would make it too easy to overestimate the grade as Like New when it’s actually in Acceptable condition, leading to customer complaints and poor reviews and/or brand image. And vice versa, under-grading an item limits the net recovery value from the resold item, leading to potential losses rather than gains.
  


• It’s expensive: For example, if a $30 home goods item is resold at 75% of the new price, ($22.50) after the Grade and Resell Processing fee ($1.80), Fulfillment fee ($6.75), and Referral fee ($3.38), the net recovered value is only $10.57, or 35.23% of the original offer price for the new condition listing. That’s less than the cost of the Fulfillment and Referral fees for the original sale of the new item. Besides the additional fees for Grade and Resell, Used items typically take longer to sell. They may require more active management of listings, including leveraging pricing and marketing tools to shrink the time to sale and, thus, avoid accumulating storage fees.
  


• Stranded inventory: If a Seller’s listing for a Used item is deleted, priced incorrectly, or otherwise not associated with an active offer, the product could become stranded, causing delays in selling and accumulation of storage fees.

Conclusion

Without truly transformative new returns models such as Cahoot’s Peer-to-Peer Returns, FBA Grade and Resell represents an attractive opportunity for Amazon Sellers to maximize the value of their returned inventory. By turning potential losses into sellable inventory, the program can help improve revenue and overall profitability, plus reduce waste.

However, like any tool, its effectiveness depends on how well it’s used. Sellers should carefully consider their pricing strategy, monitor the performance of their Grade and Resell listings, and be prepared to manage this inventory alongside their New Condition counterparts actively. For many FBA Sellers, it may be a valuable addition to their arsenal of tools for managing inventory and maximizing returns recovery. But for others, while this presents an opportunity to sell their Used returns (that may have otherwise gone to landfill), they need to be keenly aware of how much can be extracted from the resale after all the FBA fees, promotional costs, and landed costs for the item.

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Protect Your Amazon Listings from Search Suppression, Hijackers, and Stockouts

Amazon is a competitive platform. You need to have a quality product, excellent listing content, and plenty of reviews to catch the attention of busy

Shipping costs are one of the largest cost centers for any e-commerce business and are second only to labor costs. With last-mile expenses increasing yearly, finding ways to reduce these costs is more important than ever. Leveraging technology to optimize shipping costs by right-sizing packaging can reduce shipping expenses significantly while improving operational efficiency and positively impacting the environment.

What is Cartonization Software and Parcel Packing Intelligence

One of the most effective ways to reduce shipping costs is to right-size the packaging. The reason is that shipping rates are based on weight. Still, shippers are charged the higher of the actual shipment weight (product in a box) OR the dimensional weight (the package volume in cubic inches turned into a weight value for rating purposes). 

Efficient Shippers have reported saving over six figures just by right-sizing their packaging. Additional savings come from lower packaging costs from using less packaging. Further savings are achieved by reducing or eliminating dunnage required to fill the void in the larger box so items ship safely, less tape is used, etc. 

The average return rate for ecommerce orders is in the 15 to 30% range (much higher for apparel); right-sizing the packaging would also reduce the cost of return shipping when the original packaging can be re-used for reverse logistics.

Cartonization software (or smart cartonization features built into Order Management Systems or Multi-Carrier Shipping and Fulfillment Software such as Cahoot) can help automate selecting the best packaging for each order, even for complex shipments containing multiple product and quantity configurations. For example, Cahoot software evaluates the dimensions of the items being shipped and auto-selects the smallest box the products can safely ship in from a list of available options in stock. By using cartonization capabilities prebuilt into software like Cahoot, ecommerce merchants can ensure they are shipping orders in the most cost-effective packaging rather than relying on warehouse staff members to guess the correct size. No human means no judgment is needed, and human errors are eliminated.

A crucial part of parcel packing intelligence, i.e., right-sizing shipments is to stock a wide variety of box, non-corrugate packaging and mailer sizes. Many shippers only stock a limited range of packaging sizes, which forces them to use larger boxes when smaller ones would suffice. Expanding the available box sizes can reduce the risk of paying to ship a lot of air. Some shipping and fulfillment solutions even support the tracking and management of packaging inventory, including cost, reorder points, etc.

It’s worth noting that cartonization and packing tools are useless without accurate dimensional data. Easy AI-based tools such as the Qboid M2 Perceptor Mobile Dimensioning handheld device have recently become available, making capturing these details a breeze.

Increase Sales and Profits through Cartonization Software

For Sellers that can pass shipping costs to their customers, right-sizing packaging increases profits and conversions through more competitive ‘all-in’ product pricing, leading to higher revenues.

Reduce Waste using Smart Cartonization

While used cardboard boxes can be recycled, much of it still ends up in a landfill with a negative environmental impact and a higher carbon footprint. So, right-sizing shipping supplies also helps the planet.

The best way to minimize cost and environmental impact is not to use overpacks at all – ship the items in their original manufacturer packaging. Amazon’s SIPP program (Ships in Product Packaging) was opened to Amazon FBA Sellers in early 2024 to reduce costs and improve sustainability. It’s generally been regarded as successful. 

It’s recommended to collaborate with suppliers to design product packaging to optimize for shipping costs, staying away from the surcharges carriers impose on “oversize” shipments.

Summary

Reducing operations expenses must be a forethought to achieve continued business success. By utilizing technology like cartonization software to optimize shipment packaging, not only are shipping cost savings guaranteed, but the cost of the supplies goes down, operational efficiency goes up, and more sustainable business practices not only result in lower carbon emissions and less waste but it can also enhance brand reputation.

Dimensional Weight

As mentioned above, DIM weight considers the package’s volume, meaning large boxes, even when filled with light products, can incur substantial shipping charges.

The DIM weight is calculated by multiplying the package’s length, width, and height, then dividing by a DIM factor set by the carrier. FedEx and UPS typically use a DIM factor 139 for domestic US shipments, while the USPS uses 166. The higher the DIM factor, the more “air” you can include in a package before triggering the DIM weight pricing.

For example, if you use a 12″x12″x12″ carton, it will be billed as a 13-pound package by UPS and FedEx based on its volume, even if the actual contents weigh much less (a box of cotton candy, as an extreme example). Over time, these minor discrepancies can add up to thousands of dollars in extra shipping fees. Switching to smaller cartons that more appropriately fit your products can help reduce these DIM weight charges. It also minimizes the need for excess void fill, such as bubble wrap or packing peanuts, which adds cost and waste to each shipment.

An example:

Shipping this 2.25 lb product 8 zones in a slightly larger box than the product (8 x 5 x 5) will cost $9.52 using USPS Ground Advantage. Shipping this 2.25 lb product 8 zones in an adequately fitted box (8 x 5 x 3) will only cost $8.35 using USPS Ground Advantage. This is only 2 inches longer on one side but represents 40% air (200 cubic inches vs. 120 cubic inches). That’s over 12% savings on just one shipment and not that egregious of an example. And not including all the waste saved as described above. 

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Celebrated for Excellence in Fulfillment Solutions and Customer Satisfaction in 3PL Services

Cahoot, the groundbreaking peer-to-peer fulfillment network, proudly announces its recognition as a Category Leader for Fall 2024 by SourceForge, the largest software and services review platform. This prestigious accolade underscores Cahoot’s dedication to providing top-tier third-party logistics (3PL) services to eCommerce businesses, delivering innovative fulfillment solutions that enhance operational efficiency, reduce costs, and improve customer satisfaction.

SourceForge’s Category Leader award is granted to companies that consistently deliver outstanding products and services, based on ratings and reviews from verified users. Cahoot’s peer-to-peer network model and commitment to cost-effective fulfillment solutions have received high praise from eCommerce businesses for helping them expand their reach, optimize order fulfillment, and improve customer experiences.

“We are thrilled to be recognized as a Fall 2024 Category Leader by SourceForge,” said Manish Chowdhary, CEO of Cahoot. “This award reflects our commitment to empowering retailers with the tools they need to compete with major marketplaces while providing excellent service to their customers. We thank our customers for their valuable feedback, which helps us innovate and provide exceptional service.”

Cahoot’s peer-to-peer fulfillment model enables brands and retailers to use their warehouse space as a part of a global network, optimizing distribution and delivery times while reducing costs. This approach has resonated strongly with eCommerce businesses seeking flexible, scalable, and affordable logistics solutions.

This latest recognition from SourceForge reinforces Cahoot’s status as a trusted partner in the 3PL space, supporting eCommerce businesses with agile, dependable, and customer-focused fulfillment solutions.

For more information about Cahoot’s award-winning fulfillment network, visit www.cahoot.ai.

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Protect Your Amazon Listings from Search Suppression, Hijackers, and Stockouts

Amazon is a competitive platform. You need to have a quality product, excellent listing content, and plenty of reviews to catch the attention of busy

Amazon continues to set the pace for customer satisfaction and delivery expectations. As we approach the latter half of 2024, Amazon is rolling out significant changes to its shipping and delivery policies that will impact Sellers across the platform. These updates aim to enhance the customer experience by ensuring faster, more accurate delivery times while also providing tools and guidance for Sellers to meet these new standards. Let’s dive into the key changes and what they mean for Amazon Sellers.

The Importance of On- Time Delivery

Amazon’s focus on fast and accurate delivery is not new, but it’s becoming increasingly important to the marketplace operator. It’s well known that the delivery speed and reliability of the delivery date expectation set during checkout are major factors in customers’ purchasing decisions. To meet this expectation, Amazon will be rigorously enforcing a new on-time delivery rate (OTDR) policy that will directly affect Sellers’ ability to list products on the marketplace.

Starting September 25, 2024, Sellers will need to maintain a minimum 90% OTDR without promise extensions to continue listing seller-fulfilled products on Amazon.com. This policy change underscores the importance of reliable shipping practices and puts the onus on Sellers to meet customer expectations. For optimal performance, Amazon recommends maintaining a 95% or higher OTDR for all seller-fulfilled orders.

It’s worth noting that this policy doesn’t apply to Fulfillment by Amazon (FBA) orders where Amazon is responsible for meeting delivery promises. However, for Sellers managing their own fulfillment, this change could have significant implications.

Updates to Transit Time Settings

To help improve OTDR and the reliability of delivery date promises made to customers, Amazon is reducing the number of transit days allowed for both Standard and Free Economy shipping options in shipping templates.

Some Sellers may have already noticed an update to the transit time requirements which became effective August 25, 2024. For Sellers shipping from the continental United States (excluding Hawaii, Alaska, and US territories), the maximum transit time allowed for Standard Shipping has been reduced to 5 days, while Free Economy shipping will have a maximum of 8 days.

There’s an important caveat for media items such as books, magazines, and DVDs. These products will continue to have a maximum transit time of 8 days for Standard Shipping. Sellers should pay close attention to their product categories to ensure compliance with these new transit time limits.

For those offering Free Economy shipping, Amazon has already adjusted max transit times in shipping templates from the previously allowed 5 to 10-day range to the new 4 to 8-day requirement. While no action is required from Sellers, they continue to have the option to disable Free Economy shipping if they prefer not to offer this service within the new timeframe.

Introduction of Automated Handling Time

Perhaps the most significant change for many Sellers will be the introduction of Automated Handling Time (AHT), set to take effect on September 25, 2024. AHT will use historical shipping data to set more accurate handling times for each SKU based on how long a Seller has typically taken to ship it in the past. For new products without historical data, AHT will default to the manually configured handling time.

This automation aims to provide customers with faster and more accurate delivery date estimates, potentially leading to increased sales for Sellers. However, it also means that Sellers will need to consistently meet these handling time expectations to maintain an acceptable OTDR. AHT will automatically take Order Handling Capacity into account (the maximum number of orders that have been fulfilled in the past 90 days) and adjust delivery promises to reflect longer handling times accordingly; the objective is to avoid overburdening Sellers with shorter handling times that cannot be met.

This feature will be automatically enabled for Sellers who currently have a handling time gap of 2 days or more compared to their actual shipping performance (Sellers can find their current handling time gap here). AHT is already available in the Order Handling Settings for Sellers that want to test how the new setting will affect their fulfillment workflows in advance of the September 25th obligation.

It’s important to note that handling time only considers business days, excluding weekend days unless weekend operations are intentionally enabled in Order Fulfillment settings.

AHT for Seller Fulfilled Prime Orders

For Prime orders that have one-day or two-day delivery expectations, the same-day handling time will continue to apply. Prime orders with standard delivery will default to a one-day handling time, unless a same-day default handling time is configured at the account-level, in which case, Prime orders with standard delivery would have a same-day handling time.

Exceptions and Protections

Amazon recognizes that certain products, such as custom-made and/or personalized items, certain media, and heavy or bulky goods, may require more flexible handling times. Sellers can request exceptions for these types of SKUs, allowing them to set manual handling time overrides. However, it’s important to note that exempted SKUs will not receive OTDR protection from late deliveries. OTD protection will be available to provide a safety net for Sellers as they adjust to the new policies.

To qualify for OTDR protection, Sellers must meet three conditions:

• Have Shipping Automation (SSA) enabled on the relevant shipping template. SSA helps set accurate delivery dates through automated transit time calculations based on preferred shipping services. (Learn More)
• Have AHT enabled on their account. (Learn More)
• Purchase “OTDR protected” Standard Shipping services through Amazon Buy Shipping

Preparing for the Changes

With these significant updates, Sellers should take proactive steps to prepare:

• Review current shipping practices and identify areas for improvement.
• Get familiar with the new transit time and handling time requirements.
• Consider enabling Automated Handling Time if it’s not already active to analyze how the required changes will impact business operations and workflows before the September 25th deadline.
• Evaluate product catalogs to determine if any items might qualify for handling time exceptions. Contact Seller Support and request that a ticket is created to have Handling Time exceptions applied to the list of SKUs.

Looking Ahead

Meeting customer expectations for fast and reliable order delivery is more crucial than ever. Amazon’s new policies reflect this reality, pushing Sellers to optimize their fulfillment processes or risk losing visibility on the marketplace. While these changes may present challenges, they also offer opportunities for Sellers to streamline their operations and potentially increase sales through improved delivery promises. Staying informed and continuously monitoring performance will help Sellers to ensure continued success on the Amazon marketplace.

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In the lead-up to Manifest 2022, the leading conference focused on innovation in logistics and supply chain, Conference Chair Pam Simon is sitting down with leaders that are redefining what’s possible. 

One of those leaders is our own Manish Chowdhary, who sat down with Pam to talk about the future of eCommerce order fulfillment. Cahoot, recognized as one of the World’s Most Innovative Companies in 2021, is empowering eCommerce merchants to offer fast and free delivery to their customers with a unique peer-to-peer platform.

The Power of Many: The Case for Ecommerce Fulfillment Networks

Demand for eCommerce order fulfillment will continue to grow

The changes in shopping behavior brought by COVID are here to stay (and then some), says Manish. eCommerce sales grew an incredible 44% year-over-year from 2019 to 2020, pulling forward many years of demand. Far from reversing, though, 2021 is projected to see another 18% jump over 2020. 

Online sales growth, and thus demand for eCommerce order fulfillment, was primarily being driven upwards slowly and steadily by generational change prior to COVID. The pandemic, though, forced those that weren’t inclined to shop online to do so – and they discovered that they liked it. At the same time, companies large and small made enormous investments in multichannel order fulfillment, further increasing the convenience and ease of online shopping. Curbside pickup, same-day delivery, and vastly improved shopping portals are all here to stay, along with customer behavior. 

How can merchants future-proof their eCommerce order fulfillment?

Don’t end up like Macy’s. Manish relates the story we all know now, 

“In the 70’s, 80’s, and even 90’s, the Macy’s of the world went and built tons of buildings, got tons of leases, and then the consumer behavior changed. Those very assets that were helping them expand and grow became a liability.”

Big merchants that take the traditional approach of investing heavily in buying & building warehouses across the country tie up significant capital and run the risk of choosing the wrong locations. Moreover, warehouse space and personnel have never been more expensive – warehouse space is at an all-time low, and there are an incredible 400,000 open job positions for frontline eCommerce order fulfillment workers. A mid-size merchant that builds a second fulfillment center in a sub-optimal location will have the worst of all worlds – they still won’t be able to cover enough of the country with 2-day shipping, and their capital will be tied up in expensive real estate.

Outsourcing fulfillment to a provider like Cahoot, on the other hand, enables merchants to offer an Amazon-like delivery experience while keeping costs low. Customers expect fast and free shipping, and on top of that, Amazon keeps raising the bar for what ‘fast’ means. A distributed US fulfillment center network like Cahoot strategically deploys its customers’ inventory in multiple nodes across the country and can offer 99% 2-day and over 40% 1-day coverage. This level of service, in fact, enables Cahoot to provide Seller Fulfilled Prime (SFP) to its customers – something very few other 3PLs even attempt.

Critically, Cahoot has dozens of fulfillment nodes, so as customer demand and needs shift, it can instantly shift its customers’ fulfillment profiles to match. Some merchants are familiar with the pain of signing up with a 3PL to extend their reach – only for sales to grow in a different part of the country, and to be back at square one. Cahoot’s eCommerce order fulfillment network has redundancy across the entire United States, and it solves present and future fulfillment needs for its clients.

What does Cahoot do differently to future-proof eCommerce order fulfillment?

Every other order fulfillment network is constrained by the warehouse and labor shortage – but not Cahoot. Cahoot is a first-of-its-kind peer-to-peer order fulfillment network that enables merchants to fulfill orders for one another. This ingenious design solves the capacity crunch by unlocking latent warehouse capacity and monetizing it for the fulfilling merchant. 

The idea was born out of ecommerce sales research. While looking at order profiles for a different project, Manish and his team realized that merchants on opposite coasts were selling identical products to people on the other coast. That is, a merchant in LA would sell a widget to a customer in NYC, and a merchant in NYC would sell the exact same widget to a customer in LA. They’d then both ship the product across the country – what a waste! This inefficient process hurt growth with slow deliveries, ate margins with long deliveries, and hurt the environment with extra emissions. Cahoot was born to help merchants solve this issue. 

It quickly grew to be more flexible and inclusive – any merchant with an excellent warehouse can fulfill orders for any other merchant, regardless of what’s being sold. In fact, Cahoot’s intelligent platform and shipping software optimize each and every label printed to ensure that a product ships from the lowest-cost warehouse that will offer a speedy delivery.

Find us at Manifest 2022

On January 25-27th, 2022, Manifest will bring together the most comprehensive ecosystem of innovation and transformation in LogisticsTech and end-to-end Supply Chain. We’ll be there, talking about the future of eCommerce order fulfillment with anyone and everyone! Come find us – we’d be happy to see you.

Offer 1-day and 2-day shipping at ground rates or less.

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