In a groundbreaking announcement at this year’s Accelerate seller conference, e-commerce giant Amazon unveiled “Supply Chain by Amazon,” a revolutionary suite of end-to-end supply chain services designed to empower sellers with the tools and capabilities to efficiently and reliably move products worldwide. The introduction of Supply Chain by Amazon marks a pivotal moment in the world of e-commerce logistics, offering sellers a comprehensive solution that leverages Amazon’s cutting-edge logistics, fulfillment, and transportation prowess. This development is set to redefine the way sellers manage their supply chain operations, enabling them to streamline processes, reduce costs, and enhance the speed and efficiency of product delivery.
Amazon’s Commitment to Seller Success:
Amazon has always been at the forefront of innovation when it comes to empowering sellers and enhancing their ability to serve customers globally. The launch of Supply Chain by Amazon underscores Amazon’s unwavering commitment to facilitating seller success in an ever-evolving and complex e-commerce landscape. With a firm belief that sellers should be able to focus on creating exceptional products and growing their businesses, Amazon has undertaken this ambitious initiative to tackle the increasingly unpredictable challenges that have plagued the supply chain industry.
Supply Chain by Amazon in Action:
The Supply Chain by Amazon ecosystem is poised to reshape the way sellers manage their inventory and distribution networks. This comprehensive suite of services covers every aspect of the supply chain process, ensuring a seamless and cost-effective journey for sellers’ products from manufacturing facilities to customers’ doorsteps.
One of the standout features of Supply Chain by Amazon is its ability to pick up inventory from manufacturing facilities worldwide, handle cross-border shipping, manage customs clearance, and arrange ground transportation. Amazon will also provide secure bulk storage solutions and oversee inventory replenishment across multiple sales channels, including Amazon and other platforms. This holistic approach empowers sellers to entrust Amazon with their logistical challenges, allowing them to focus on product development and business growth.
Key Benefits of Supply Chain by Amazon:
- Automatic Cross-Border Discounts: Sellers can now enjoy discounts of up to 25% on cross-border transportation bound for Amazon Warehousing and Distribution (AWD). AWD, Amazon’s cost-effective storage service, allows sellers to store inventory in Amazon distribution centers and efficiently distribute products in bulk.
- Streamlined Domestic Inbound Transportation: Through the Partnered Carrier Program (PCP), sellers can expect reliable and expedited domestic transportation to AWD centers at up to 25% lower costs compared to alternative solutions.
- Expanded AWD Offering: AWD is now accessible to all selling partners, offering substantial discounts of up to 80% on storage fees compared to Fulfillment by Amazon (FBA). With no peak pricing during Q4, sellers gain greater control over inventory management, even during peak holiday seasons. In the near future, sellers will also have the option to reserve low-cost, long-term bulk storage well in advance, at even more attractive rates.
- Multi-Channel Distribution (MCD) Capability: MCD facilitates the bulk movement of sellers’ products from AWD to various sales channels, including online stores and physical locations. This innovation empowers sellers to replenish inventory seamlessly across all sales and fulfillment channels, not limited to Amazon. MCD is currently in a pilot phase and is expected to be available to all sellers later this year.
- Automatic Inventory Replenishment with FBA: Leveraging advanced machine learning and supply chain optimization, Amazon will automatically replenish inventory in the most optimal Amazon fulfillment centers to meet expected customer demand. This enhancement results in faster FBA delivery speeds and increased potential for same-day and next-day deliveries, driving an average 15% increase in unit sales.
As Amazon continues to revolutionize the e-commerce landscape, the introduction of Supply Chain by Amazon represents a significant milestone in the company’s commitment to empowering sellers worldwide. By simplifying supply chain management, expediting delivery, and reducing costs, Amazon is positioning itself as a trusted partner in the success journey of its selling partners. With the imminent expansion of Multi-Channel Distribution (MCD) and the availability of AWD storage reservations, the benefits and flexibility of Supply Chain by Amazon are set to soar, further solidifying Amazon’s role as a leader in the e-commerce ecosystem. As sellers embrace these innovations, they can expect to unlock new growth opportunities, deliver unparalleled customer experiences, and propel their businesses to new heights.