How Amazon's supply chain can overcome logistics chaos in 2022

As one of the fastest growing companies in the world, Amazon has a top-notch supply chain business worldwide. But no matter how efficient or how big the scale is, there are always many problems or risks involved.

First, while Prime is great for consumers , it is not so friendly to sellers . FBA sellers’ products are eligible for free shipping; however, sellers must pay the shipping costs associated with their items , and they cannot choose which products to offer free shipping. Since most sellers offer free shipping on most of their products , the delivery fees charged by the platform will eat into the seller’s profits.

Secondly, it takes a lot of time for Amazon to record all the goods into the system , which will cause some delays in the delivery time of the package . This delay will have a direct negative impact on customer satisfaction and lead to negative reviews and star ratings.

In addition to this, the risk of Amazon’s supply chain is that your product could get lost among the countless products that are processed every day. In the event of a lost product, Amazon will compensate the seller; however, the amount of compensation is determined by Amazon , regardless of how much your product is sold for or how much it is worth. As a result, the seller suffers a loss.

In some cases, Amazon supply chain analysis cannot accurately predict the demand of all products , which will also affect customer satisfaction. Therefore, it is not always reliable when making stocking decisions to prepare for the peak shopping season. Sellers can use tools such as profit dashboards to obtain accurate sales information and conduct effective inventory management.

During busy shopping periods, the delivery of orders often ends up with logistical issues. This can lead to a large number of dissatisfied customers who do not receive their ordered products within the planned time . However, this also prompted Amazon to handle this work independently, making the last mile delivery problem better and better.

2022

Amazon

Supply Chain