Cross-border e-commerce sellers are facing critical challenges as Amazon recently implemented a series of new policies affecting product shipping and order processing. These changes require immediate attention from sellers to adapt their operations accordingly.
Tightened Hazardous Goods Policy: FBA Restrictions for US Islands
Effective April 25, Amazon updated its hazardous materials shipping policy, prohibiting sellers from using Fulfillment by Amazon (FBA) to ship regulated hazardous goods to US islands. Sellers must now rely on third-party logistics providers for such deliveries.
The restricted hazardous materials include:
- Flammable liquids (paint, alcohol, etc.)
- Flammable solids (matches, activated charcoal, etc.)
- Oxidizers and organic peroxides (bleach, hydrogen peroxide, etc.)
- Toxic substances (pesticides, insecticides, etc.)
- Corrosive materials (hydrochloric acid, sulfuric acid, etc.)
- Gases (compressed gases, liquefied gases, etc.)
- Other hazardous items (lithium batteries, magnetic materials, etc.)
This policy change has significantly impacted sellers dealing with these products, with many reporting accumulated inventory and disrupted shipping plans. The development underscores the importance of careful product selection and transportation planning.
FBM Order Cancellation Process Modified: Expanded Buyer Privileges
Amazon has also revised its Fulfillment by Merchant (FBM) order cancellation process. Previously, buyers needed seller approval to cancel orders after 30 minutes of purchase. The new policy allows buyers to cancel orders at any time without seller authorization.
Buyers can now cancel through formal return processes or informal communication channels. Amazon states this change aims to help sellers "view cancellation requests across multiple pages and respond promptly through proper operations to reduce returns and refunds."
However, many FBM sellers express concerns about increased vulnerability, arguing the change complicates order processing and weakens their position in transactions. The US marketplace implemented these changes on May 10, with UK and European markets following on May 23.
Logistics Companies Deny Service Suspension Rumors
Amid these policy changes, rumors circulated about major international couriers suspending services from China, causing additional concern in the cross-border e-commerce sector. However, companies including FedEx and UPS issued statements on April 24 confirming normal operations.
FedEx reported its Shanghai Pudong International Airport hub maintained operations throughout pandemic restrictions, with import services resuming on April 25. DHL confirmed its North Asia hub continues operating under closed-loop management, while UPS noted its Shanghai and Shenzhen hubs remain functional with adjusted services to comply with local regulations.
Industry analysts observe gradual improvements in logistics as authorities implement measures to facilitate supply chain operations during pandemic controls.
Adaptation Strategies for Sellers
To navigate these changes, cross-border sellers should consider the following approaches:
- Reassess product selection strategies, avoiding regulated hazardous goods or preparing alternative shipping solutions
- Optimize inventory management to minimize FBA storage risks
- Maintain close communication with logistics providers about policy updates
- Monitor FBM orders closely and engage with buyers regarding cancellations
- Diversify sales channels to reduce platform dependence
- Enhance product quality and service standards to strengthen market position
These policy adjustments and logistical challenges demand greater adaptability from cross-border sellers, requiring strategic adjustments to maintain competitiveness in evolving market conditions.