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September 12, 2023

Amazon Introduces New Global Supply Chain Initiative for Marketplace Sellers

Posted In: Retail Articles

Supply Chain by Amazon is a new initiative launching as an end-to-end, fully automated set of supply chain services that will provide marketplace sellers with a complete solution to quickly and reliably move products directly from their manufacturers across global markets customers.

Amazon announced the new suite of services at Accelerate, its annual marketplace seller conference. It enables its seller partners to benefit from Amazon’s advanced logistics, fulfillment and transportation capabilities to keep products in stock, ship faster and more reliably, and significantly lower costs, the company stated.

In its new supply chain endeavor, Amazon will pick up inventory from manufacturing facilities around the world, ship across borders, handle customs clearance and ground transportation, store inventory in bulk, manage replenishment across Amazon and other sales channels, and deliver directly to customers.

New Amazon logistics pricing reflects discounts of up to 25% on all cross-border transportation that is bound for the company’s warehousing and distribution network, further reducing costs for selling partners using Supply Chain by Amazon. In addition, as part of the supply chain initiative, Amazon is providing streamlined domestic inbound transportation to its warehousing and distribution network. So, in addition to Amazon Global Logistics for cross-border transportation, later this year sellers can use the company’s Partnered Carrier Program to streamline domestic transportation into Amazon warehouse and distribution centers. Sellers get transportation with established carriers at up to 25% lower costs compared to alternatives, Amazon asserted.

In addition, Amazon has opened AWD to all selling partners, giving them the ability to store in bulk at discounts of up to 80% compared to Fulfillment by Amazon storage fees with no peak pricing during the fourth quarter, and, soon, the ability to reserve low-cost, long-term bulk storage months in advance at even deeper discounts, the company stated.

Amazon also is rolling out a new multi-channel distribution capability for bulk products and automatic inventory replenishment with FBA.

“Our vision has always been to make it as easy as possible for sellers to serve customers around the world, and providing our selling partners with a simple, fast, cost-effective solution to a challenge that has become increasingly unpredictable and complex is an important investment in sellers’ success,” said Dharmesh Mehta, Amazon vp of worldwide selling partner services, in announcing the logistics initiative. “With Supply Chain by Amazon, Amazon will pick up sellers’ inventory directly from their factory, and manage the supply chain logistics through delivery to customers’ doorsteps. Sellers will be able to offload even more of the complexity of their supply chain logistics to Amazon, both for the products they sell in Amazon’s store and through other sales channels including online and physical store locations. We are excited to help sellers, both on and off Amazon, save more money, drive more business growth, and have more time to continue inventing amazing products for customers.”

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