Amazon Offers Supply Chain Services for Sellers

Amazon has introduced a comprehensive set of supply chain services for sellers that aims to streamline the movement of products from manufacturers to customers across the globe.

With the new Supply Chain by Amazon, sellers can now focus on product development and business growth, while Amazon takes care of the complexities of logistics, the company said in a Tuesday (Sept. 12) press release.

One of the key advantages of Supply Chain by Amazon is the automatic cross-border discounts provided through Amazon Global Logistics (AGL), according to the release. Sellers who utilize this service can get discounts of up to 25% on cross-border transportation bound for Amazon Warehousing and Distribution (AWD). AWD, Amazon’s low-cost storage service, allows sellers to store their inventory in Amazon distribution centers and efficiently distribute products in bulk.

To further support sellers, Amazon will introduce the Partnered Carrier Program (PCP) later this year to streamline domestic transportation to AWD centers, the release said. This program will ensure reliable and fast transit times with trusted carriers, while also offering up to 25% lower costs compared to alternative options.

Additionally, Amazon is expanding its AWD offering with reduced prices, making it available to all selling partners, per the release. This provides sellers with the opportunity to store inventory in bulk at discounts of up to 80% compared to Fulfillment by Amazon (FBA) storage fees. This flexibility allows sellers to efficiently manage inventory levels throughout the year, including peak seasons.

Furthermore, Amazon is introducing a new Multi-Channel Distribution (MCD) capability, according to the press release. MCD enables sellers to move their products in bulk from AWD to any sales channel, whether it be online stores or physical locations. This feature allows sellers to replenish inventory across all their sales and fulfillment channels, not just on Amazon, from a single inventory pool. Currently in pilot with a select group of sellers, MCD is expected to be available to all sellers later this year.

In addition, Amazon is enhancing its inventory replenishment process with FBA by utilizing advanced machine learning (ML) and supply chain optimization capabilities, the release said. This will automatically replenish inventory into the most suitable Amazon fulfillment centers, ensuring faster speeds and enabling sellers to fulfill customer orders for off-Amazon channels through Multi-Channel Fulfillment (MCF).

Amazon said in its most recent earnings results that sales gleaned from its third-party sellers segment soared by 18.1% in the second quarter to $32.3 billion. The company said it is also continuing to execute on its strategy to streamline fulfillment and logistics.