Amazon Announces 'Supply Chain by Amazon' to Simplify Logistics for Sellers

Amazon has announced the launched Supply Chain by Amazon, an end-to-end, fully automated set of supply chain services that will provide sellers with a complete solution to quickly and reliably move products directly from their manufacturers to customers around the world.

Supply Chain by Amazon enables sellers 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.

With Supply Chain by Amazon, Amazon will pick up inventory from manufacturing facilities around the world, ship it 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.

Sellers can now focus on building great products for their customers and growing their business, while Amazon handles the logistics, reduces costs, and improves delivery speed. Key benefits of Supply Chain by Amazon include:

Automatic cross-border discounts for Amazon Global Logistics (AGL)

Amazon’s new prices now reflect discounts up to 25% on all cross-border transportation that is bound for Amazon Warehousing and Distribution (AWD), further reducing costs for selling partners using Supply Chain by Amazon.

Insight: How Does Amazon Do It?

AWD is Amazon’s low-cost storage service that provides sellers the ability to store their inventory in Amazon distribution centers and seamlessly distribute products in bulk.

Streamlined domestic inbound transportation to AWD with Partnered Carrier Program (PCP)

In addition to AGL for cross-border transportation, later this year sellers can use PCP to streamline domestic transportation into AWD centers. Sellers can count on reliable and fast transit times with trusted carriers, at up to 25% lower costs compared to alternatives.

An expanded AWD offering with reduced prices

AWD is now open to all selling partners, giving sellers the ability to store in bulk at discounts of up to 80% compared to Fulfillment by Amazon (FBA) storage fees.

With no peak pricing during Q4, sellers can more efficiently manage inventory levels, even during the holiday season. Coming soon, sellers will also be able to reserve low-cost, long-term bulk storage months in advance at even deeper discounts.

Automatic inventory replenishment with FBA

In addition to the cost savings through AWD, Amazon will now use its advanced machine learning and supply chain optimization capabilities to automatically replenish inventory into the optimal Amazon fulfillment centers to support expected customer demand

This allows sellers to benefit from even faster speeds from FBA and deliver customer orders for off-Amazon channels through Multi-Channel Fulfillment (MCF).

“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,” said Dharmesh Mehta, Amazon vice president of WW Selling Partner Services.

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