The Webretailer News Digest July 25, 2022
Amazon sellers looking to keep their accounts in good standing will have an updated tool to help accomplish that goal. This week, the retail giant announced it will release a new version of its ‘holistic’ Account Health Rating (AHR) metric.
The tool allows sellers to diagnose the health of their account with ease using an aggregated violation score that puts seller accounts into one of three categories: ‘Unhealthy’, ‘At-Risk’, or ‘Healthy.’
As of now, the metric only includes the categories ‘Critical’ and ‘At-Risk’, but the new system will work on a scoring system from 0 to 1,000 and provide more details for sellers. When ARH detects a policy violation, it removes points from an account. And when the seller addresses the issue, the points return.
The scoring will reflect the previous 180 days and rank as:
- 200 to 1,000 is ‘Healthy’,
- 100 – 199 is ‘At-Risk’
- 99 and lower is ‘Unhealthy’
To create the score, the AHR system will assign points to policy violations based on their severity — low, medium, high, and critical. The system will also increase the point total for repeat violations, and Amazon can deactivate your account if you max out on those violations.
The new policy rolls out in the US and Canada in August and to the rest of the world in 2023.
FedEx rolling back on Sunday deliveries as post-pandemic eCommerce numbers cool
At the end of 2019, both UPS and FedEx Ground announced that Sunday delivery was coming. And through the Pandemic, the Sunday service proved valuable for both companies.
But now, FedEx is taking a step back on Sunday service and reducing coverage in the US from 95% to 80%. The move comes as eCommerce numbers have steadily declined in the past year. Plus, the company is dealing with issues regarding the delivery contractors who run the Sunday last mile.
Both Bloomberg and Business Insider reported this week that contractors are calling for higher pay for these services. Some say they’re going bankrupt and also stated that the Sunday delivery network could collapse if everything remains the same.
Many contractors signed on to a video letter this week that gives FedEx until Black Friday to address their concerns. Otherwise, they could make moves that would disrupt deliveries during the holiday season.
Hopefully, the two groups will work things out. A disruption for even one major carrier would cause an industry-wide domino effect.
Amazon formally launches Rivian electric vans
As reported back in February, Amazon started testing its first fleet from an order of 100,000 Rivian electric vans. And now five months later, Amazon formally announced it is beginning the vehicle rollout. The company has operations plans in place that will put the vans in use in over 100 cities by the end of the year with more on the slate.
Ultimately, Amazon wants to change public perception of its environmental policies. Prime has caused a lot of backlash in recent years as a huge carbon footprint contributor.
With the Rivian vans and other environmental changes planned, Amazon is doing a lot to set the tone for corporate environmental policy. But whether it is working is yet to be seen.
Etsy hits charitable milestone
Back in February 2021, Etsy announced the launch of a program that gives buyers the option to donate to the Uplift Fund at checkout. There, buyers can opt to round up their purchase price to the nearest dollar and donate that amount.
Adyen, the third-party company that processes the donations, announced this week that the fund hit 10M contributions from Etsy buyers. They didn’t provide a dollar amount, but you can do the math if you want. Regardless, it’s a nice sum of money going to this charity.
If you’re not familiar, the Brooklyn-based Uplift Fund supports a variety of nonprofit organizations around the US that help provide equal entrepreneurial opportunities.
Ingo Uytdehaage, CFO at Adyen stated, “Etsy has been a key partner in building out our Giving solution, including the round-up feature. By combining strengths with Adyen’s technology and Etsy’s two-sided marketplace, we were able to come together to find a solution that drives impact, in line with the UN’s Sustainable Development Goals. We can’t wait to see what else we accomplish together.”
eCommerce warehouse system in readjustment period
An article in the Wall Street Journal this week revealed some useful information for eCommerce retailers. The article stated that investments in warehouses related to eCommerce fulfillment and storage may have some dreary news coming.
Lower sales this year have definitely hit retailers like Amazon and Walmart online, and there have been residual effects from the slowdown. Though it hasn’t hit yet, the WSJ is reporting that leasing for eCommerce warehouses may fall off as CEOs are cutting back on spending in this sector.
However, they state this is also a short-term issue. In the long run, customers are flocking more and more to eCommerce for purchases. Though the warehouse pandemic boom is over, it seems investing in fulfillment warehouses could be a solid long-term investment.
Forklift / Lift Truck market booming because of eCommerce
Whether you call them a forklift or lift trucks, the market for trucks that lift things is booming according to market research and consulting agency Fact.MR. Their latest study states that the lift truck market value will increase from $48.52 billion this year to $94.56 billion by 2032.
The report stated that warehouse owners all over the world are focusing on ways to enhance their properties to increase production capabilities and lower operational costs. Here are some highlights from the report:
- North America will account for 22.8% of the lift truck market in 2022
- The Chinese lift truck market is up to $9.17 billion
- The European lift truck market will hold 36.4% of the market in 2022, with an opportunity to create an additional $17.66 billion.
You can look at the report here, but know that Fact. MR requires that you provide contact information.