Amazon divides the U.S. into eight regions, and warehouse distribution issues may intensify

As Amazon's official logistics channel, using FBA is indeed much more convenient and more popular with consumers, but it also means that sellers have to endure Amazon's various "unfair terms."

Recently, Amazon CEO Andy Jassy revealed in his annual letter to shareholders that Amazon will divide its U.S. distribution network into eight regions , each of which will be self-sufficient. This is done to reduce costs and shorten delivery time.

It is understood that each of the eight interconnected distribution areas is self-sufficient and can also deliver to other areas across the country when necessary.

Some speculate that this may be because Andy Jassy learned from the experience of Amazon's cloud computing department and finally chose this decentralized approach.

However, Andy did not mention what impact the division of the logistics network into eight will have on sellers who use FBA to ship goods , so it is not clear whether sellers will need to split shipments more frequently in the future.

Insiders said that Amazon has recently completed the regional division of its logistics network, so if there will be any impact, sellers should be able to feel it soon.

In addition, Andy Jassy also stated in the letter that Amazon will use machine learning algorithms to predict the needs of consumers across the United States so that sufficient inventory can be prepared at the right time and place.

Andy added: “Shorter shipping distances mean lower service costs, less impact on the environment, and customers get their orders faster. We may be able to offer next-day and same-day delivery to more areas in the future, and we are on track to achieve the fastest Prime delivery speeds ever in 2023.”

Although delivery speed has become faster, many sellers are not happy because they are still shrouded in the previous "shadow of warehouse division".

"I recently wanted to send air freight to replenish the stock, and Amazon allocated four warehouses for me for four boxes of goods."

"Since Amazon launched Send To Amazon, warehouse division has become more and more crazy. No matter how you set it up, it won't work. Amazon is determined to divide the warehouse."

"Single box single SKU is not distinguished, single box mixed SKU is basically distinguished, and changing the address is useless."

Although sellers have complained repeatedly, this will not stop Amazon from making corrections. However, whether this new change will aggravate the situation of warehouse division will require more feedback from sellers.

Amazon

logistics

Warehouse