This week's top stories include is shipping from China about to get a lot
more expensive, Walmart tackles convenience to entice
holiday shoppers and toy manufacturers supply chains uprooted after Toys 'R' Us
liquidation. Remember to click the link below for the full story and two other
featured articles.
First up, is shipping from China about to get a lot more expensive? President Trump
plans to withdraw from the Universal Postal Treaty. Under the treaty, the U.S.
subsidizes international shipping for small parcels set from China to the U.S.
This has made it cheap for Chinese manufacturers to ship directly to U.S.
consumers. But American manufacturers don't receive the same benefits. And many
believe this discrepancy gives Chinese sellers of unfair advantage over their
American counterparts. Chinese companies now make up about 60% of packages
shipped into the U.S. And many websites offer free shipping from China due to
the low rates. But many experts see this as an attempt to pressure China and
negotiate better terms rather than an actual attempt to leave the treaty.
Next up, Walmart tackles convenience to entice holiday shoppers. Walmart is
making serious changes to its shipping policy in a bid to win over holiday
shoppers. Changes take effect mid-November and include expanded
two-day shipping and in-store returns of third-party Walmart Marketplace orders.
Customers returned 90 billion worth of goods last holiday season. Returning
gifts is a headache many shoppers anticipate ahead of the holiday season.
Preventing this headache, in addition to expanded shipping options, demonstrates
Walmart's move towards a customer-centric shopping experience. This mindset is a
great tactic for any seller hoping to draw in holiday shoppers. Last up, toy
manufacturers' supply chains uprooted after Toys 'R' Us liquidation. Toys 'R' Us
accounted for 15 to 20 percent of U.S .toy sales last year. But this holiday season
will be the first without a Toys 'R' U.S. in almost 70 years. Sales at Hasbro Inc.
dropped 7 percent in the U.S. and Canada and 24 percent in international markets
in the last quarter. The company credits this fall to the loss of
Toys 'R' Us and inability to meet shipping demands for new retailers.
Hasbro is working through the challenges of new retailers and liquidation.
But the Toys 'R' Us closure will likely have a major impact on the entire toy
industry this holiday season. Toys 'R' Us would buy large quantities of toys at a time
to fill its warehouses. But with the super store's closure, Hasbro can't rely
on large orders in advance any longer. Walmart, Target and Costco are among
brick-and-mortar stores increasing shelf space for toys. Online retailers will
also be vying for space in the disrupted market. Those are just the top
three stories from this week. To read the other two follow the link in the
description below. Thanks for watching and tune in next week on Best in
Manufacturing!
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