Navigating Expensive Freight, Supply Chain Issues, and Amazon's Inventory Restrictions with Burak Yolga
Firing The Man · with Burak Yolga · June 1, 2021 · 44 min
Summary
Ecommerce operators are currently grappling with unprecedented freight costs and supply chain disruptions. This episode tackles the core reasons behind these issues—from container imbalances to port congestion—and offers actionable strategies like utilizing prep centers or alternative shipping methods to mitigate impact on their Amazon businesses and maintain profitability.
Key takeaways
Leverage West Coast prep centers for US-bound inventory or regional warehouses for other markets (e.g., UK, Europe) to navigate Amazon's inventory restrictions and high air freight costs.
Explore rail shipping from China to Europe (approx. 20-25 days, ~$3/kg) as a more stable and cost-effective alternative to ocean freight, which faces significant delays and price volatility.
Recognize that current high shipping costs are driven by a confluence of economic and logistical factors, including unbalanced container flows (more goods to US/Europe, fewer returning to Asia), port congestion, and increased demand.
Be aware of the ongoing global logistics challenges, including raw material shortages and labor cost inflation, which are causing price increases across the supply chain. Proactively seek alternative sourcing channels beyond traditional Asian markets to diversify risk.
Understand that Amazon's inventory restrictions necessitate a shift from direct-to-Amazon warehousing to a hybrid model involving third-party prep centers to manage stock and optimize shipping costs, especially for sellers focused on competitive pricing.
Check out https://forceget.com/ to use promo code FTM 300 and tell them that FiringTheMan sent you. Episode 75 Ken and I are happy to talk with Burak Yolga for the second time, where we talk about logistics, inventory, and supply for e-commerce businesses. Our interview with Burak is timely as shipping is so expensive right now. How then can e-commerce business owners ship to the US in the most efficient way possible? What can they learn from smart Amazon sellers? All these...and more i...
What does this episode say about supply chain & operations?
Leverage West Coast prep centers for US-bound inventory or regional warehouses for other markets (e.g., UK, Europe) to navigate Amazon's inventory restrictions and high air freight costs.
What does this episode say about amazon & marketplaces?
Explore rail shipping from China to Europe (approx. 20-25 days, ~$3/kg) as a more stable and cost-effective alternative to ocean freight, which faces significant delays and price volatility.
What does this episode say about finance & fundraising?
Recognize that current high shipping costs are driven by a confluence of economic and logistical factors, including unbalanced container flows (more goods to US/Europe, fewer returning to Asia), port congestion, and increased demand.
What does this episode say about supply chain & operations?
Be aware of the ongoing global logistics challenges, including raw material shortages and labor cost inflation, which are causing price increases across the supply chain. Proactively seek alternative sourcing channels beyond traditional Asian markets to diversify risk.
What does this episode say about supply chain & operations?
Understand that Amazon's inventory restrictions necessitate a shift from direct-to-Amazon warehousing to a hybrid model involving third-party prep centers to manage stock and optimize shipping costs, especially for sellers focused on competitive pricing.
