THE AMAZON ANALYTICS INSIDER SEPTEMBER 2023

TL;DR 

  • Amazon launched a new service called Supply Chain by Amazon, which provides sellers with end-to-end fulfillment for non-Amazon sales channels, at a lower cost.

  • "Prime Big Deals Day" will take place October 10-11

  • Amazon launched a new shipping service, Amazon Shipping, for independent sellers, offering competitive rates and access to Amazon's delivery network

  • Amazon is urging sellers to ship their Black Friday inventory by October 26th and expects to reduce storage capacity in November.

  •  Amazon's practice of shipping products in their original packaging led to a seller's product being returned unsellable. For customer returns, monitor your Customer Returns and Removal Shipment Details Reports. 


SCBA: Supply Chain By Amazon

Source: 1

Amazon recently announced the launch of Supply Chain by Amazon. This new program that provides sellers with end-to-end fulfillment for non-Amazon sales channels. This allows Amazon sellers to use Amazon's logistics and fulfillment services to sell their products on other platforms

Supply chain by Amazon has three steps:

  1. Amazon picks up inventory directly from manufacturers around the world, and ships the products across borders. They then handle customs clearance, ground transportation, bulk inventory storage.

  2. Amazon stores the pallets in Warehouses and Distribution sellers. 

  3. Products can be distributed via FBA, or it can be routed to customers from other sales channels such as Walmart, Shopify, Physical stores or sellers own websites.

Sellers will be able to use all three layers of SCBA, or just the ones they need. The main incentive here is that costs will most likely be lower for sellers. 

Prime Big Deals Day: October 10-11

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This year Prime day was so successful that Amazon decided to offer "Prime Big Deals Day" As another shopping event for prime members. The event has now been announced for three weeks from now, as October 10th through 11th 

“Amazon Shipping” For independent Sellers 

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Amazon recently announced a new shipping service, Amazon Shipping, for independent sellers. The service offers competitive rates across the US and access to Amazon's delivery network. However, it is currently limited to sellers with warehouses in fifteen metropolitan areas and those who actively sell on Amazon.

This is designed to help sellers save time and money on shipping, and to provide customers with a fast and reliable delivery service. The service picks up packages from sellers' warehouses and delivers them to customers in 2 to 5 days, including weekends, at a low cost.

Amazon Shipping isn't yet a direct competitor to USPS, UPS, and FedEx, but it has the potential to become one in the future. 

Consequences of “Ship In Original Packaging” 

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Another seller has come to face the consequence of Amazon shipping Products in their original packaging. This seller had his knee sleeves shipped in the original packaging. The problem was, when the customer returned the sleeves, Amazon had cut the label out of the box. leaving a huge hole, thus making the product unsellable. 

Report Recommendation: Customer Returns and Removal Shipment Details Reports.

Sellers: “Prepare for November capacity limits” 

Source: 1

In order to prepare for Black Friday, Amazon urged sellers to ensure that their shipments will arrive by October 26th to avoid delays. Because of this. Amazon revealed that sellers should expect to " see higher estimated capacity limits for October and lower estimated capacity limits for November:, where the "capacity limits for November provide enough storage for six months of inventory"

This update sparked many questions and left many frustrated. One seller is upset because October is only two weeks away, and there is still no confirmed storage limit. Another seller expressed that fulfillment centers are taking months to receive shipments that only consist of 1-2 palettes.

Report Recommendation: Monthly Storage Fees, Shipping Queue: Summary and Shipping Queue: Contents reports. 

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Service Updates, September 2023