93% of Amazon sellers suffer revenue loss due to supply chain issues

Despite the chaos in the U.S. supply chain in 2021, total U.S. e-commerce sales still reached nearly $470 billion , of which Amazon’s sales accounted for nearly 40%, and nearly 50% of Amazon’s sales came from third-party sellers on the platform .

According to the latest survey by Jungle Scout , 93 % of Amazon sellers said that their revenue was damaged due to supply chain disruptions , and most companies' inventory was delayed for two months or more. Some of the survey results are as follows:

Ø 48% of large brands said their inventory orders were delayed by one to four months.

Ø 42% of large brands and 27% of small business owners said they were unable to order new inventory from suppliers .

Ø 44% of large brands and 26% of small businesses said their existing inventory was affected by supply chain issues.

Ø 23% of large brands and 11% of small businesses said they lost the Buy Box due to product out-of-stocks due to supply chain issues .

Jungle Scout said 45% of small businesses estimated that their total sales lost due to supply chain issues were less than $5,000, but 30% of small businesses lost between $5,001 and $25,000 .

In contrast, 18 % of large brands estimated their sales losses to be less than $ 50,000 , while 16 % estimated their losses to be more than $ 500,000.

It is reported that these delayed stocks mainly come from China, with 69% of small businesses and 66% of large businesses mentioning that their stocks from China failed to arrive in time due to supply chain problems . In fact, 42% of the goods imported by the United States come from China.

Faced with the challenges brought by the supply chain crisis, different brands have demonstrated different responses , and there is no specific single response .

For small businesses , 20 % of sellers cut advertising spend , 20 % changed their fulfillment methods, 24% launched new products with sufficient inventory , 18% discontinued products, and 9% rented more warehouse space to store the goods they had in stock .

For larger brands , 37% cut advertising spending and 34 % changed fulfillment methods. Nearly a third launched new products, 22 % discontinued products, and 25 % expanded warehouse space.

In addition to the above measures, some big brands have taken additional measures, such as changing suppliers ( 27%) and increasing advertising spending to sell products with sufficient inventory (17%) . They also responded to the delay crisis by raising product prices and sending goods to warehouses months in advance .

Although the supply chain in the United States has stabilized this year , container ships on the West Coast are still backlogged, product and worker shortages are still there , and the problem of rising freight rates still exists . We don’t know what challenges cross-border sellers will face in the new year, but we can only hope that all goes well for sellers in the Year of the Tiger!

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