Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 79

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 79
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by about $43.0 million, or 43.7%, from $98.5 million in 2022 to about $55.5 million in 2023. The decrease is attributable to a decrease
in the weighted average unit cost and a decrease in units sold of 6.3 million, or 26.8%, in 2023 compared to 2022. In 2023, the downgraded
demands from consumers led to significant decrease in the weighted average unit cost and units sold in 2023 compared to 2022.

Cost of revenues of health and nutritional
supplements decreased by about $17.0 million, or 45.0%, from $37.8 million in 2022 to $20.8 million in 2023. The decrease in cost of
revenues of health and nutritional supplements is mainly due to a decrease in the weighted average unit cost as we sold more
affordable health care products instead of high-price health care products.

Cost of revenues of household products
increased by about $12.9 million, or 19.1%, from $67.5 million in 2022 to about $80.4 million in 2023. The increase was primarily
due to an increase in weighted average unit cost. The increase in weighted average unit costs of products sold of our household
products is mainly because we sold higher unit price products in 2023 than 2022 from weighted average unit cost.

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 $0.7 million, or 18.3%, in 2023 compared to 2022. The fulfillment expenses as a percentage of total
revenues were 1.8% in 2023, slightly up from 1.8% in 2022. The decrease was consistent with the decline in total revenues.

Marketing Expenses

Marketing expenses decreased by $1.0 million,
or 11.6%, in 2023 compared to 2022. Marketing expenses constituted 4.9% and 4.2% of our total revenue in 2023 and 2022, respectively.
The decrease was primarily due to the decreased marketing and promotional activities as a result of our efforts to reduce expenses.

General and Administrative Expenses

Compared to 2022, our general and
administrative expenses decreased