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Brett walker england logistics6/3/2023 ![]() “That gap is getting more and more narrow,” says Walker. Walker points to Amazon’s business model, which requires more new sellers to repeatedly come into the space, driving prices down for customers at the same time as fees go up. “The costs are only going in one direction.” At the same time, business is getting more challenging for FBA sellers. “I can totally see how people would say it’s kind of like a frog in boiling water,” says Walker. These conditions dissuade most businesses from trying to chance their luck going it alone-or with a competitor-and instead they swallow the price hikes. (On the coasts, vacancy rates of less than 2 percent are not uncommon.) “The market is so tight at the moment that anyone, not just Amazon, is having to think strategically about how much space they need, and how much they might need in the future,” Mofid says. In the US, the vacancy rate is 4.4 percent, he says, with variations depending on the market. The warehouse vacancy rate in the UK is 2.8 percent-the lowest it’s ever been, according to Kevin Mofid, head of industrial and logistics research across Europe, the Middle East, and Africa for the real estate firm Savills, and a specialist in warehouses. The alternative is for sellers to build their own or rent space in independent warehouses-challenging enough at any point, never mind at a time when the market is squeezed. Beginning May 12, we will implement a fuel and inflation surcharge of 4.3 percent on top of our current FBA fee per-unit rates in the UK, Germany, France, Italy, and Spain.” Wickham denied there was a connection between fee rises and Amazon’s spare warehouse space. “It’s still unclear if these inflationary costs will go up or down, or for how long they will persist. “In 2022, we expected a return to normalcy as Covid-19 restrictions around the world eased, but fuel prices and inflation have presented further challenges,” says Amazon spokesperson Dagmar Wickham. ![]() “For a minimum amount of money, you can scale a business with almost no infrastructure.” “It’s an awesome scaling program,” he says. The business is in the top three of the biggest child-focused arts-and-crafts brands on Amazon in the UK, and amongst the top in the United States and Canada. “We’re almost exclusively through Amazon, something like 90-plus percent,” he says. (Walker asked WIRED not to disclose the name of his business because successful businesses on the site are often attacked by competitors who report fictitious issues to Amazon to try to decrease their standing online.) The 42-year-old’s toy business, which designs and manufactures toys and craft materials in China and then sells into English-speaking markets including the UK, US, and Canada, has been running on Amazon’s third-party fulfillment service, Fulfilled by Amazon (FBA), since 2016. Wilson Browne Solicitors Kettering, Higham Ferrers & Rushden, Corby, Wellingborough, Leicester, Northampton.In Suzhou, China, online toy shop owner Cameron Walker relies on Amazon to ship nearly a million packages for his business every year. A list of the members of the LLP is available via our website and for inspection at the registered office, together with a list of those non-members who are designated as Partners. We use the word Partner to refer to a member of Wilson Browne LLP, or a senior employee or consultant with equivalent standing and qualifications. The VAT registration number, is 115 1080 65. ![]() The registered office is: Kettering Parkway South, Kettering Venture Park, Kettering, Northamptonshire, NN15 6WN. Wilson Browne LLP is a limited liability partnership registered in England and Wales. The Authority’s rules can be accessed at. ![]() ![]() 513398) is authorised and regulated by the Solicitors Regulation Authority. Wilson Browne Solicitors is a trading style of Wilson Browne LLP (company number OC345105). Business Development & Marketing Director ![]()
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