As a Amazon carrier, Jitu has started to reduce costs.
Since joining Amazon’s backend carrier service in March, Jitu International has finally made new moves.
3 months ago, Jitu International planned to open sites in the United Arab Emirates, Mexico , the United States, Canada, the United Kingdom, Germany, France, Italy, Spain and other sites. But in the following months, there was still relatively little linkage between Jitu International and Amazon. The two seemed more like they were still in the running-in period.
Now, the two sides have finally figured out a reason.
In order to help Amazon sellers reduce costs and improve cross-border logistics and transportation timeliness, Jitu International Special Line Small Packet has launched a special shipping discount. full link enjoys a 50% discount on the kilogram price, and free door-to-door collection, independent charter flights, and discounts are available today Effective from now on.
In the past two years, the rise in operating costs has attracted the attention and concern of Amazon sellers. Especially for Amazon's US site, how to reduce costs and improve efficiency has become an urgent problem that sellers need to solve. Since the fourth quarter of last year, Amazon itself has been in trouble with performance pressure.
Why is Jitu helping Amazon take the lead?
Currently, Jitu has overseas branches in the United States, Singapore, the United Arab Emirates and other places. Jitu International’s self-built overseas warehouses have also covered more than 6 countries in Southeast Asia, Europe and the United States, connecting sea, air, and land transportation resources to provide One-stop intelligent warehousing services such as warehousing, FBA transshipment, cloud warehouse and value-added services.
This time, Jitu International is providing with timely help. The preferential activities cover the United States, which is in deep supply chain crisis. Singapore, the United Kingdom, France, and the United Arab Emirates are also included in the scope of the activities.
Among them, the United Arab Emirates is a market that Jitu just opened in January this year, and it is also a site where Amazon is strengthening its logistics network construction. The alliance between the two takes what they need.
For Christmas series items in the North American market, Jitu International Overseas Warehouse has also supported sellers to prepare goods in advance to ensure sufficient inventory to ensure normal operations of sellers. In other words, Jitu International’s US overseas warehouse has stocking experience.
The stocking capacity is reflected in the fact that Jitu International's US overseas warehouse covers an area of about 15,000 square meters, with a maximum daily order processing capacity of 30,000 PCS. It can provide buyers with value-added services including warehousing management , customs clearance and logistics distribution. .
In addition, as early as early March, Jitu International launched British and German economic packets to help sellers deliver goods to users in a more economical way.
It is worth noting that the United States, Singapore, the United Kingdom, France, and the United Arab Emirates are also sites covered by Amazon Prime Day. Is Amazon interested in Prime Day?
Amazon needs Jitu International
Amazon US sellers most need Jitu International’s increase.
Starting from April 28, Amazon US will impose a 5% fuel and inflation surcharge on third-party sellers who use Fulfillment by Amazon (FBA). This means that each express delivery by American sellers increases the transportation cost by 5%, so many sellers do not appreciate it.
In order to improve profitability, it was recently reported that Amazon leased 8 warehouses for US$520 million, and 6 warehouse leasing transactions have been completed. Amazon mainly aims to reduce losses and increase revenue by solving the problem of overcapacity.
Regarding shipping costs for small packages, Amazon’s European site had clearly reduced shipping costs before, but at that time it was only for the UK site.
According to a previous announcement by Amazon Europe, starting from April 12, 2022, Amazon will reduce the small package shipping fee by 20% for UK sellers when booking eligible shipments through the Amazon Partnered Carrier Program. This paved the way for Jitu International to launch a small package shipping discount.
Amazon’s alliance with Jitu means that more Amazon sites can enjoy small package shipping discounts, and Jitu’s internationalization process will also be accelerated.
For Amazon, its main intention should be Prime Membership Day, and it has already made many preparations before.
In late April, Amazon allowed third-party sellers to use Amazon’s vast transportation and logistics network, no longer limited to more than 200 million Prime customers, which means that Amazon FBA’s customer scale has expanded, especially during major sales.
In 2015, Amazon launched the Prime Day event for the first time with the purpose of increasing platform performance. Unlike previous years, Amazon plans to hold two Prime membership events for the first time this year, one in mid-July and one in the fourth quarter, obviously to fulfill its promise of improving profitability.
It is worth noting that Amazon’s largest sales every year is “Black Friday” in November, which attracts similar attention to Double 11 in China. It is a critical moment that determines the success of cross-border sellers in the year, followed closely by “ Cyber Monday”.
Generally speaking, whenever there is a major promotion on the platform, coupled with the platform's heavy subsidy measures, the parcel business volume of the e-commerce platform will also see a substantial increase. However, e-commerce parcels are generally mainly small parcels, which are numerous and complex. Can it be Ensuring that consumers have a good express delivery experience is closely related to express delivery carriers.
At the same time, against the background of weak online economic development, the increase in Jitu International Parcel Line is particularly important. This is also a means to attract sellers to participate in promotions. At the same time, Amazon can compete better with other platforms and attract sellers to return. To a certain extent, also gives Prime Day more possibilities to create miracles.
In the situation of drastically reducing inventory capacity Next, Amazon has decided to control operating costs within a certain range. With the help of third-party logistics carriers, it can effectively reduce costs and improve efficiency to prepare for profitability. Sellers also have an additional choice of preferential shipping methods.
Laying out the logistics network and revitalizing the retail business
As Prime Day approaches, Amazon is strengthening its logistics business in various places, such as the United States, the Middle East , India, Japan, Brazil and other places.
Recently, Amazon said that it will build an additional 400 electric vehicle charging stations at its distribution center in Racine County, Wisconsin, USA, with the intention of establishing a complete electric vehicle delivery network. Looking globally, Amazon aims to deploy 100,000 electric delivery vehicles globally by 2030.
includes the United Arab Emirates site that is cooperating with Jitu International this time, and Amazon is taking advantage of it step by step.
In order to welcome the arrival of Prime Day, Amazon has opened the largest local delivery site in Abu Dhabi , which is also the second largest delivery station in the UAE, providing same-day delivery and next-day delivery services.
Currently, the Amazon network across the UAE includes two fulfillment centres, three sorting centres, eight delivery stations and a network of delivery service partners.
In India, Amazon currently has 1,850 delivery stations and partners. In July 2021, Amazon India announced plans to expand its storage capacity in India by nearly 40%. As part of its expansion plans, Amazon India will launch 11 new fulfillment centers and expand nine existing fulfillment centers.
In the unmanned logistics business, Amazon launched the first fully automatic mobile warehouse robot to transport large carts for the warehouse. Additionally, Amazon said drone delivery services will begin in Rockfield, Calif., later this year. Since the Prime Air service launched, Amazon has produced more than two dozen drone prototypes.
It is worth noting that Walmart is also continuing to expand its drone delivery network.
Last month, Walmart announced that it would expand its DroneUp drone delivery service to 34 sites in the United States by the end of this year. Each drone is expected to deliver more than 1 million packages per year.
Whether it is the construction of distribution centers or the layout of unmanned logistics, the logistics war between Amazon and Wal-Mart is intensifying.
At present, Amazon already has a large fleet of its own delivery drivers, trucks and planes to quickly deliver packages to customers' doorsteps.
Behind all this, Amazon’s ambition to revive its retail business is clear.
The gradual improvement and strength of the logistics business means that the service level of the retail business in the logistics link is also improving, and sellers and consumers will also enjoy the convenience. Whether Amazon's retail business can be profitable is a matter of time.
author | Qingsong
