Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 73

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 73
---
 on our platform and inbound shipping costs.

Cost of revenues of cosmetic products decreased
by about $18.8 million, or 33.9%, from $55.5 million in 2023 to about $36.7 million in 2024. The decrease is attributable to a decrease
in the weighted average unit cost and a decrease in units sold of 3.7 million, or 17.6%, in 2024 compared to 2023. In 2024, the downgraded
demand from consumers led to significant decrease in the weighted average unit cost and units sold in 2024 compared to 2023.

Cost of revenues of health and nutritional
supplements increased by about $12.0 million, or 57.7%, from $20.8 million in 2023 to $32.8 million in 2024. The increase in cost of
revenues of health and nutritional supplements is in line with the increase of revenues of health and nutritional supplements which
is mainly due to an increase in units sold as we sold more affordable health care products instead of high-price health care
products.

Cost of revenues of household products decreased
by about $19.3 million, or 24.0%, from $80.4 million in 2023 to about $61.1 million in 2024. The decrease was primarily due to a decrease
in the weighted average unit cost and a decrease in units sold of 1.7 million, or 14.7%, in 2024, compared to 2023. In 2024, the downgraded
demand from consumers led to significant decrease in the weighted average unit cost and units sold in 2024 compared to 2023.

Fulfillment Expenses

Our fulfillment expenses primarily consist of
costs related to order fulfillment, including charges we paid for order preparation, packaging, outbound freight, and physical storage.
Fulfillment expenses decreased by $1.0 million, or 33.8%, in 2024 compared to 2023. The fulfillment expenses as a percentage of total
revenues were 1.5% in 2024, slight decline from 1.8% in 2023. The significant decrease in fulfillment expenses is due to less products
purchased and sold.

Marketing Expenses

Marketing expenses decreased by $3.1
million, or 40.4%, in 2024 compared to 2023. Marketing expenses constituted 3.5% and 4.