Simply On Track: Logistics tips to simplify your supply chain, delivered bi-monthly to your inbox.

Amazon Watch: UPS Drops Amazon

UPS just made a big move that’s sending ripples through the shipping industry—and especially among Amazon sellers. Here’s the rundown:

• • • • Contract Changes: UPS dropped its USPS contract. In practical terms, all those small, low-cost packages that used to be handed off to USPS now must travel through UPS’s regular network. This shift is putting extra pressure on their system.

      • Pulling Back on Amazon: Shortly after, UPS announced it is also pulling back on Amazon shipments. By offloading Amazon, UPS has freed up capacity to better balance its network and improve their service.

So, what does this mean for you as an Amazon seller?

• • • • Potential Cost Increases: Small businesses that depend on affordable home deliveries might face higher shipping costs as UPS’s system adjusts.

      • Service Adjustments: While high-value B2B UPS customers might experience a temporary slowdown in service, the overall shift will balance out and focus on improved quality.

      • Market Opportunities: Meanwhile, FedEx and regional carriers are poised to pick up new business—a sign that you may soon see more options (and competition) in the shipping space.

As UPS rebalances its operations, it’s a critical time for Amazon sellers to stay informed and consider alternative logistics strategies to keep shipping smooth and costs in check.

Ecommerce Shift: New Tariff Policies and Evolving Trade Realities

• De Minimis Watch:At Simple Forwarding, we were excited to hear about the De Minimis getting revised – maybe it’s time for American sellers to finally be put first? Chinese sellers operating on platforms like Shein, Etsy and even Amazon have exploited the de minimis loophole to the detriment of American sellers.However, the suspension is being delayed until the Commerce Department can implement an adequate system to collect tariffs efficiently.‘The delay is another example of Trump’s policies meeting reality’, says Clark Packard, a researcher at the Cato Institute. 
• Canada Tariff Comeback:Canada hits back with a similar 25% tariff on a huge range of goods in response to Trump’s proposed 25% on Canadian imports to the USA. Trade between the US and Canada will definitely be under some strain as each side will be forced to operate with this extra tariff.U.S. companies will see a reduced market in Canada.U.S. importers of Canadian products will also have a higher cost to pass on to American consumers.We remain open for a diplomatic resolution although it has been made clear Canada will not stand idly by but will counter U.S. measures with all they have.

 

Behind The Boxes

In each newsletter we’ll share a case study to give you an insight into the logistics process!

Sometimes we book a shipment on the slowest ship on purpose.

A customer came to us with three containers of non-urgent goods that his supplier was pressuring him to move out of the factory already. These weren’t needed right away, so he wasn’t excited to pay for expensive shipping plus months of storage once they arrived. But he thought he had no choice.

As soon as our consultant heard this shipment is non-urgent, we suggested a creative solution: To use a slower, low-cost carrier that always gets delayed, and deliberately plan to miss the first available ship, ensuring the containers would catch the next one instead. By taking the long, slow, scenic route, the shipment arrived three months later—exactly when the customer needed it.

The result? The customer avoided unnecessary storage fees, saving $$$ by aligning the delivery with their timeline.

Most of the time, we employ the service of the best carriers, but from time to time the worst among them come in handy 😉

 

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