Good morning,

Amazon is facing a new U.S. regulatory challenge after the Senate Small Business Committee launched an investigation into allegations that Chinese influence may have affected the company's third-party marketplace.

The probe could have broad implications because third-party merchants account for about 60% of products sold on Amazon. Sellers have long complained about arbitrary suspensions and difficulties resolving disputes, with some allegedly turning to insiders to navigate Amazon's marketplace rules.

Let’s dive into today’s edition.

For the past few months, we've been speaking directly with small and mid-sized 3PL operators across the United States to understand what it's really like to run a logistics business in today's market.

Through first-hand accounts, conversations with logistics leaders, and extensive research, we've uncovered what's happening to small and mid-sized 3PLs, why some are struggling while others continue to grow, and the strategies helping operators navigate one of the toughest markets in years.

The result is The State of Small & Mid-Sized 3PLs Report 2026.

It will be released on July 30th and will be available to all CrossDock paid members as part of their subscription. If you value original reporting, exclusive research, and deeper insights into the supply chain and logistics industry, consider becoming a CrossDock paid member.

FedEx has unveiled its 2026 peak season surcharges, raising holiday shipping costs across its network. The higher fees will apply over roughly the same period as last year, with all surcharges in effect by Oct. 26 and remaining through Jan. 17, 2027.

Key Details: Among the biggest increases, the Additional Handling Surcharge will range from $8.80 to $11.85 per package, the Oversize Charge will rise to $95.75–$117.25, and the Ground Unauthorized Package Charge will reach $535–$595.

Enterprise customers shipping more than 20,000 residential and Ground Economy packages will also face a separate Residential Delivery Charge of $1.70 to $9.35 per package, depending on how much their holiday volume exceeds a June baseline.

The sharpest increases are concentrated in high-volume e-commerce categories. According to ShipScience, the peak surcharge for Ground Residential shipments will rise from $0.65 to $0.80 per package, a 23% increase that could significantly raise costs for online retailers.

Reason for Rise: FedEx said the demand surcharges are necessary to manage higher shipping volumes, tighter capacity, and increased operating costs during the holiday rush.

Amazon Business is on track to generate $60 billion in annualized merchandise sales, marking a 71% increase from 2023 as the e-commerce giant deepens its push into corporate procurement.

What is Amazon Business? Originally launched as Amazon Supply in 2012 before being rebranded as Amazon Business in 2015, the platform initially grew by encouraging companies to convert personal Amazon accounts into business accounts with procurement tools and corporate discounts.

Big Team: More recently, Amazon has expanded its enterprise offering with features such as custom quotes, bulk delivery and AI-powered procurement tools, helping attract larger organizations including UC San Diego, Nasdaq and Amazon's own operations. The company now serves more than 11 million business accounts, with 1.8 million new organizations joining since the start of 2026.

What’s Next? Amazon Business said it delivered more than half a billion orders worldwide last year and is rolling out dedicated business delivery trucks across 13 U.S. states. The new fleet is designed for loading docks, campuses and offices, offering scheduled delivery windows, palletized shipments and consolidated drop-offs.

Shein posted a $99 million first-quarter loss, reversing a $395 million profit a year earlier, as higher U.S. tariffs, slowing sales and a one-time accounting charge weighed on the fast-fashion retailer ahead of its planned Hong Kong IPO.

The company said the removal of the U.S. de minimis exemption has hurt its biggest market and increased operating costs.

American Weakness: The retailer said U.S. revenue fell 14.3% year over year to $2.04 billion, with the U.S. accounting for 22.5% of quarterly revenue, down from 29.4% of annual revenue in 2023. Chinese-made products shipped to the U.S. now face tariffs ranging from 10% to 87.5%, prompting Shein to raise prices to offset part of the additional costs.

European Issues: The pressure is also spreading to Europe. After the EU introduced a €3 fee on low-value e-commerce imports, Shein warned that the impact on European demand could match or even exceed the slowdown experienced in the U.S. Europe accounted for about one-third of the company's revenue in 2025.

Albertsons slashed its fiscal 2026 outlook after reporting weaker-than-expected grocery demand, saying more cautious consumers are spending less on everyday essentials. The disappointing results sent the grocer's shares down more than 20% as investors reacted to the weaker outlook.

Reduced Hopes: The company now expects full-year net income of $1.75 to $1.85 per share, down sharply from its previous forecast of $2.22 to $2.32 per share. It also cut its adjusted EBITDA guidance to $3.55–$3.625 billion, from $3.85–$3.925 billion, and now expects identical sales to decline 1.5% to 0.5%, instead of being flat or rising by up to 1%.

Free Fall: CEO Susan Morris said digital and pharmacy businesses continued to grow, but core grocery sales came under pressure from softer industry demand.

Big Picture: Albertsons said it is increasing investments in customer experience to revive traffic and long-term growth. The retailer's warning adds to signs that inflation, high fuel costs and tighter household budgets are prompting U.S. consumers to reduce grocery spending.

High inflation and persistent economic uncertainty are driving a lasting shift in U.S. shopping habits, with consumers across income levels increasingly choosing private-label products over national brands. From January through May, value retailers grew sales 11.6% year over year, compared with 2.3% for conventional retailers.

Timely Act: Retailers are responding by expanding their own brands. Target plans to introduce 600 private-label food and beverage products over the next two years, while Walmart is expanding its bettergoods line to nearly 1,000 items. Aldi, which operates around 2,700 U.S. stores, plans to open 180 stores this year and another 400 by 2028.

New Strategies: The trend is also reshaping competitive strategies. Kroger said private-label sales are growing faster than national brands, while Albertsons aims to increase private-label products to 30% of sales as customers migrate toward lower-priced retailers. Analysts increasingly view retailers' investment in store brands as a long-term structural strategy rather than a temporary response to inflation.

Nestlé is lobbying U.S. authorities to allow food companies to use common ingredient names instead of scientific terms on packaging, arguing labels such as "vitamin C" are more consumer-friendly than "ascorbic acid." The effort comes as officials review food-labeling rules under the "Make America Healthy Again" initiative.

Naming Issues: The company says current U.S. labeling requirements can make natural and safe ingredients appear overly processed, potentially discouraging purchases. Nestlé has raised the issue with Health Secretary Robert F. Kennedy Jr.'s team and is also advocating for simpler labeling through industry trade associations.

The push reflects changing consumer preferences. An Innova Market Insights report found about three-quarters of North American consumers reconsider purchases based on ingredient lists, prompting food companies to invest billions in removing artificial colors, preservatives, and additives.

Broader Effort: Nestlé's campaign is part of a broader industry effort supported by companies including Coca-Cola, PepsiCo, and Cargill. However, some public health advocates argue that replacing scientific names with simpler descriptions could reduce transparency around food additives.

Amazon is planning to build a $1 billion, 4.2 million-square-foot fulfillment center on 140 acres in Holbrook, Long Island, expanding its logistics footprint in the New York region. The project, codenamed Project Sunrise, is expected to be located along Interstate 495 (Long Island Expressway).

Infrastructure Details: According to planning documents, the facility will feature 76-foot ceilings, parking for 2,100 vehicles, and an attached sub-same-day fulfillment center. The warehouse will also deploy advanced robotics to automate package sorting and movement.

The two-building complex is designed to operate 24 hours a day, seven days a week, supporting Amazon's growing same-day and next-day delivery network. Reports indicate the site will handle traffic from around 300 tractor-trailers each day.

Big Picture: If approved, the development would rank among Amazon's largest logistics investments, reinforcing the company's continued focus on automation, high-capacity fulfillment, and faster delivery capabilities in one of the country's largest consumer markets.

New Jersey has become the third U.S. state to ban surveillance pricing, after Governor Mikie Sherrill signed the Fair Price Protection Act into law. The legislation, which takes effect in one year, prohibits retailers from using shoppers' personal data to charge different prices for the same essential grocery items.

Key Details: The law bars businesses from using information such as shopping habits, online activity, biometric data, genetic information, and protected-class data to determine grocery prices. The restrictions also apply to third-party grocery delivery platforms, aiming to prevent AI-driven price discrimination.

The legislation also imposes a one-year moratorium on installing new electronic shelf labels, reflecting concerns that the technology could facilitate dynamic pricing. New Jersey joins Maryland and Connecticut, which have already enacted similar bans

What’s Next: Retailers argue the restrictions could undermine loyalty programs, digital coupons and personalized discounts that many shoppers rely on. Meanwhile, California is considering similar legislation, although the proposal could expire in August if lawmakers fail to pass it.