Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 147

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 147
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2, revenue from service fees were $316,607, $544,562and $123,208, respectively.

Unearned revenue consists of payments received
or awards to customers related to unsatisfied performance obligations at the end of the period, included in contract liabilities in the
Company’s Consolidated Balance Sheets. As of December 31, 2024 and 2023, the Company had total contract liabilities of $2,372,037and $2,357,016, respectively, which mainly represent the proceeds received for orders placed at end of each period, while the deliveries
were accomplished at the beginning of the next periods, when they were recognized as revenue. The revenue subsequent recognized that was included in the contract
liability balance at the beginning of the respective period was $1,910,872and $1,787,159, respectively.

Revenue is recognized at a point in time when
the goods are transferred to customers, and no remaining performance obligation in future periods. The Company applies a practical expedient
to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less.
The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs
to be longer than one year which need to be recognized as assets.

Cost of revenue

Cost of revenue consists primarily of purchase
price of products, inbound shipping charges and write-downs of inventory. Shipping charges to receive products from the suppliers are
included in the inventories and recognized as cost of revenues upon sale of the products to the customers.

Fulfillment expenses

Fulfillment expenses consist primarily of expenses
charged by third-party couriers for dispatching and delivering the Company’s products and rental expenses of leased warehouses.
Shipping cost included in fulfillment costs amounted to $1,634,158, $1,932,398and $2,074,452for the years ended December 31, 2024, 2023
and 2022, respectively.

Marketing expenses

Marketing costs primarily consist of targeted
online advertising, payroll and related expenses for personnel engaged in marketing and selling activities. We also participate in cooperative
advertising arrangements with certain of our vendors, and other third parties.

Advertising costs, which consist primarily of
online advertising and outdoor advertising, are expensed as incurred, Advertising cost included in marketing expense amounted to $ $235,495,
$1,421,315and $2,142,803for the years ended December