PRC Approves Temporary Rate Adjustments for 2022 Peak Holiday Season

Every year, the U.S. goes through enough cardboard boxes for shipping to pave a one-mile-wide road from New York City to Los Angeles three times, or build a mile-high cardboard wall around the entire continental U.S. Getting rid of overreliance on Amazon.com's signature brown box is a key goal of the retail giant and its consumer partners, reports CNBC. In 2022, 11 percent of Amazon orders worldwide were sent in original manufacturer packaging. The company has yet to release its 2023 figure for the initiative designed to get rid of Amazon’s signature brown box, called the Ships in Product Packaging program. Total Retail's Take: The abundance of packaging needed to keep up with consumers' e-commerce purchases only continues to grow; however, more retailers and brands are now working to address the issue. Amazon initially launched the Ships in Product Packaging program in 2023 for vendors, and in February 2024 opened it to sellers. It identifies products that might work, contacts vendors and then, to ensure that packages won’t be damaged during delivery, Amazon works with those companies to test product packaging. Some companies that sell on Amazon say they will no longer develop new products that can’t be shipped without additional Amazon boxing.

Despite the ramping up of global data regulations, most consumers are concerned about how companies collect and use their information. In fact, an overwhelming 96% of consumers are "somewhat" to "extremely" concerned about data collection and usage. This is understandable, as more than 75% engage in digital payment transactions at least once a month. This was according to “Consumer Data Privacy: Strategic Opportunities to Address Emerging Consumer Needs,” a report from A.T. Kearney. The level and intensity of consumer digital commerce engagement will continue to increase, the report revealed. And for those transacting online, consumers are increasingly using cards-on-file, both at individual retailers and third-party payment providers (e.g., PayPal, Visa Checkout) to conduct digital purchases. Click Read More below for more of the story.

Gross profit increased 5% to $219.1 million, or 52.2% of sales, compared to $209.1 million, or 58.5% of sales, in the second quarter of 2021. The 630 basis point decrease in gross margin was primarily driven by higher inbound freight, higher product costs and the unfavorable impact of foreign currency exchange rates, partially offset by price increases. Selling, general, and administrative (“SG&A”) expenses increased 10% to $150.8 million, compared to $136.7 million in the second quarter of 2021. As a percentage of sales, SG&A expenses decreased 230 basis points to 35.9% from 38.2% in the prior year period, primarily driven by non-variable expense leverage on higher sales, partially offset by higher variable expenses driven by higher distribution and logistics costs. Operating income decreased 6% to $68.3 million, or 16.3% of sales, compared to $72.4 million, or 20.2% of sales during the prior year quarter. Net income decreased 18% to $46.3 million, or 11.0% of sales, compared to $56.2 million, or 15.7% of sales in the prior year quarter; Net income per diluted share decreased 16% to $0.53, compared to $0.63 per diluted share in the prior year quarter.