Amazon trying to swallow everything in logistics
Written by Han & Summer
After the coronavirus, the world realized the importance of supply chains more and more. A situation has arisen where supplies do not arrive, or the manufacturer is unable to supply essential materials. Both companies and consumers have realized the importance of the value of a resilient and scalable supply chain.
As increasing Amazon 3PL business, Amazon sellers also recognize the importance of supply chains. Amazon also has storage limits, so sellers need to keep an inventory of their products. So, there are some issues for the sellers such as risk of supply chain, insufficient storage capacity and cost. Therefore, Amazon provide Amazon Warehousing & Distribution [AWD] service to solve these issues. Registration is easy, and the sellers can send inventory to Amazon distribution centers with a single click and significantly reduce storage costs while eliminating complex pricing and long-term contracts common across the industry. In other words, it can solve sellers’ inventory management issues and provide operational efficiencies.
One of the biggest challenges in supply chain management is uncertainty. In all supply chains, to some degree, uncertainty exists. For example, it is virtually impossible to know in advance how much customer demand for an apple tomorrow will be, or for a coat for the upcoming winter season. In this way, sellers reduce the burden on inventory by sending all inventory to Amazon distribution centers. In other words, customer service and exchange are all carried out on Amazon, which alleviates the worries about logistics and helps expand your business.
The expansion of Amazon’s power is increasing day by day. A new analysis by BigRentz Inc., which rents equipment to companies, shows Amazon now operates 305 large fulfillment centers around the U.S. that average 800,000 square feet of storage space. By 2023, BigRentz says, Amazon will have at least 355 U.S. warehouses covering 319 million square feet. However, Amazon currently requires sellers to continue inventory management in an area that currently has a storage limit of only 10 cubic feet, defaulted by supply chain requests to Amazon fulfillment centers. If an Amazon seller send more inventory than the allowable storage limit, the sellers run the risk that the fulfillment center will reject the excess inventory, or your Amazon score will drop. However, if Amazon Warehousing & Distribution [AWD] service is supported, storage limits are not regulated.
Amazon Warehousing & Distribution [AWD] was created as a continuation of Amazon’s multi-year investment in its warehousing and distribution network to support sellers and better serve customers. As a 3PL provider, PNPLINE also operates an ecommerce warehouse that simplifies complex operations through iterative innovation. And we will try to free sellers from inventory problems or out-of-stock problems. In addition, to provide global 3PL service, we are improving the overall logistics system and investing in fulfillment services based on data reflecting the needs of e-commerce companies that want to reduce the false delivery rate.
Gopal, P. (2022). Amazon announces new service to help solve supply chain challenges for sellers. Amazon. https://www.aboutamazon.com/news/small-business/amazon-announces-new-service-to-help-solve-supply-chain-challenges-for-sellers
Amazon seller central (2022) FBA inventory storage limits https://sellercentral.amazon.com/help/hub/reference/external/XLRKWL8L5BMSHWB?ref=efphXLRKWL8L5BMSHWB_cont_201074410&locale=en-US
Anna, S. (2022). Mapping Amazon Warehouses: How Much Square Footage Does Amazon Own? BIGRENTZ. https://www.bigrentz.com/blog/amazon-warehouses-locations
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