The Impact On Amazon Sellers If Longshoremen Go On Strike
Seller Sessions · with Steven Selikoff · June 22, 2022 · 17 min
Summary
This episode is a critical listen for Amazon sellers, detailing the severe impact a longshoremen strike could have on supply chains and inventory. It highlights the stark contrast between shipping companies' record profits and longshoremen wages, explaining why a strike is likely. The discussion provides actionable strategies for sellers to mitigate risks, including diversifying shipping and optimizing inventory, to protect their businesses from potential disruptions and profit loss.
Key takeaways
Diversify your shipping routes and consider alternative ports (e.g., East Coast) to avoid West Coast port congestion during a potential strike. This reduces reliance on a single, vulnerable supply chain entry point.
Explore alternative shipping methods such as air freight for high-value or time-sensitive inventory, despite higher costs, to circumvent marine shipping delays.
Adjust inventory levels and forecasting to account for potential long-term delays. Build a buffer stock to sustain sales during supply chain disruptions.
Implement proactive risk management strategies by staying informed on labor negotiations and developing contingency plans for various strike scenarios.
Understand the historical impact of port slowdowns, like the 2014 Christmas slowdown, to anticipate the leverage longshoremen have and plan accordingly for critical selling periods.
Today I bring in Steven Selikoff to discuss the possibility of a strike happening as the Longshoremen agreement expires soon (ca). With shipping companies making $190 Billion in profits last year alone. This could be a tough stand off for the union, and the employees that do the back breaking and dangerous work, around the clock, for national average salary for $54,439.The shipping companies increased prices sevenfold last year. During the same time, the Longshoremen worked through a pandemic on the same money. You do not want your products sitting on a ship caught in a backlog, or worse, stuck offshore if a strike hits. The 2014 Christmas slowdown shows that the longshoremen know the leverage they have by causing supply chain problems during the Holidays. This is the topic of discussion today, and some workarounds if the work case scenario happens. Steven Selikoff is a serial entrepreneur who has been developing innovative products since 2005. His products have been sold through Amazon Vendor & Amazon Marketplace, in independent & specialty retailers, and in big box stores all over the world. He has four patents, has had products on every major morning show from the Today Show to Fox Business News, featured in newspapers and in magazines ranging from USA Today to Forbes to Vogue, and were even in the gift bags at the Oscars. Steven was formerly Global Business Manager for Microsoft Worldwide Retail Sales & Marketing, and has taught and has lectured on Negotiation, Product Development, and Business Process Improvement across the globe. He is the author of The COMPLETE BOOK of
What does this episode say about amazon & marketplaces?
Diversify your shipping routes and consider alternative ports (e.g., East Coast) to avoid West Coast port congestion during a potential strike. This reduces reliance on a single, vulnerable supply chain entry point.
What does this episode say about supply chain & operations?
Explore alternative shipping methods such as air freight for high-value or time-sensitive inventory, despite higher costs, to circumvent marine shipping delays.
What does this episode say about founder & leadership?
Adjust inventory levels and forecasting to account for potential long-term delays. Build a buffer stock to sustain sales during supply chain disruptions.
What does this episode say about amazon & marketplaces?
Implement proactive risk management strategies by staying informed on labor negotiations and developing contingency plans for various strike scenarios.
What does this episode say about amazon & marketplaces?
Understand the historical impact of port slowdowns, like the 2014 Christmas slowdown, to anticipate the leverage longshoremen have and plan accordingly for critical selling periods.
