Amazon launches seller storage service to solve supply chain problems

Gopal Pillai , vice president of Amazon's delivery and fulfillment solutions, said in a blog post that Amazon has launched a new service called Amazon Warehousing & Distribution (AWD) to help its sellers store bulk inventory and simplify delivery, solve supply chain problems , and help sellers grow and manage their businesses and reduce costs.

For many businesses, managing logistics and operations (such as inventory storage, distribution and order fulfillment) has greatly increased costs, especially in recent years , as supply chain issues have led to challenges in global inventory storage and fulfillment . Port congestion caused by large-scale strikes has not only kept freight rates high for a long time, but expensive warehousing costs have also become a stone weighing on sellers' minds.

A recent survey of Amazon sellers in the United States showed that the three major pain points for sellers in upstream warehousing and distribution business are high storage prices, complex charging structure, and insufficient storage capacity.

With AWD , sellers can get rid of the time-consuming and cumbersome process of transferring inventory from upstream facilities to Amazon's fulfillment centers , solving sellers' inventory management challenges and improving operational efficiency .

In this process, sellers send their inventory to Amazon fulfillment centers to reduce storage costs without the complex pricing schemes and long-term contracts common across the industry. The final seller integrates its upstream inventory storage business with the Amazon logistics network, ensuring that it always has the right amount of inventory at the right place and at the right time.

Sellers using AWD will also be able to consolidate their global inventory, which they can then view and manage on Seller Central, streamlining their operations through one pool of inventory. By 2023, sellers will be able to use AWD to send their inventory to any location , including wholesale customers or physical stores.

Previously, Amazon revealed that multiple warehouse plans had been shelved, and the inventory capacity of a large number of sellers dropped sharply. Amazon has been making frequent moves in warehouse storage, and many sellers are wondering: "Is the peak season coming?" Now it seems that the launch of the AWD service may also be related to this.

In short, Amazon's long-term layout in the supply chain is obvious to all. The launch of the AWD service may be able to solve the common challenges faced by sellers - freeing sellers from the difficulties of complex operations, storage issues and inventory gaps.

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