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Oct 26, 2024 12:00AM

Amazon FBA faces severe congestion in Western facilities. All West Coast IXDs and AWD centers are at full capacity, impacting Q4 plans. Amazon has suspended inbound shipments and incentivized Eastern shipments to redistribute inventory load.

Jon Elder | Link to post

🚨 ATTENTION: Amazon FBA Sellers 🚨

If you rely on AWD to send inventory into FBA warehouses, this post is going to hurt your soul.

❓ Amazon is experiencing an unprecedented level of congestion within its Western Cross-Dock (IXD) and Amazon Warehousing and Distribution (AWD) facilities.

How bad is the congestion?

This bad: ➡ All IXDs and AWD facilities on the West Coast are at full capacity, with no further room for backup inventory.

This has HUGE implications for your Q4 plans.

👉 Amazon's Response:

Certain Amazon facilities have temporarily suspended the acceptance of inbound shipments.

💵 Incentivized Eastern Shipment: Amazon has reduced the inbound placement service fee by $0.05 per unit for shipments directed to the East region, aiming to redistribute inventory load. This carrot should be MUCH, MUCH bigger IMO.

⌛ Extended Shipment Management: For shipments initiated between August 7 and October 31, the closure window has been extended to 90 days, and the abandonment window to 45 days.

😡 The Big WHY: The congestion primarily originates from the inefficiencies in Amazon's cross-dock network, where the distribution from national and regional cross-docks to fulfillment centers has been severely delayed, potentially adding weeks to standard inbound times.

💡 Strategic Considerations: I've said this before and I'll say it again. You need to have what I call "emergency inventory" at 3PL locations on both the West and East costs. This is a perfect example of why they're so important to maintaining healthy stock levels at Amazon.

AWD just screwed sellers. Amazon pitched AWD as the "promised land" and now it's turning into a nightmare for millions of sellers.

Who could have seen this coming?

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P.S.

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