If you’re sending inventory to Amazon’s West Coast facilities, it’s time to pay attention. Things are getting tricky, and it could change how you handle the rest of the holiday season.
What’s Happening?
Amazon’s West Coast warehouses are really crowded right now. Both AWD (Amazon Warehouse Distribution) and all West IXDs (Inbound Cross-Dock facilities) are completely full. This situation has led Amazon to take some big steps that sellers need to know about.
What Amazon Is Doing:
- Halting Inbound Shipments: Some facilities are temporarily stopping new shipments. This could leave sellers scrambling to adjust their plans.
- Lower Fees for East Coast Shipments: To encourage sellers to send their inventory to the East, Amazon has lowered the fees by $0.05 per unit. This might be a good option, but it also comes with challenges.
- Longer Shipment Closure Times: For shipments created between August 7 and October 31, the automatic closure time has been extended to 90 days, and the abandoned shipment window is now 45 days. This gives sellers more time, but it can complicate inventory management.
What Sellers Should Do
If you have shipments you don’t plan to send, cancel them to avoid impacting your capacity limits. Making adjustments now can help you later.
Why Is This Happening?
The main issue comes from Amazon’s cross-dock (IXD) network, which helps move goods from one place to another. With so much demand on the West Coast, these IXDs are overloaded, leading to delays that can take weeks.
Shipping East
To deal with the congestion, Amazon is encouraging shipments to the East Coast. But this shift can create its own problems, such as longer shipping times and more logistical challenges.
Q4 Complications
Adding to the chaos, Amazon is launching and reorganizing multiple warehouses right in the middle of Q4, a busy time for sellers. With limited appointment availability in November and December, this situation becomes even more complicated. If you rely on getting products quickly, this season could be especially tough.
Preparing for the Holidays
As the holidays approach, a key question is: Will your inventory arrive on time? Delays could lead to stock shortages and lost sales, which are critical during Q4.
Tips for Sellers
To handle this situation better, consider these strategies:
- Reassess Your Inventory: Decide which products are most important for the holidays and prioritize sending those.
- Consider Alternative Shipping: If you can, send inventory to the East Coast or use third-party logistics to avoid congestion.
- Stay Updated: Keep an eye on Amazon’s updates about warehouse status and appointment availability. This will help you adjust your plans quickly.
Conclusion: Relying on Amazon
This congestion highlights the challenges of depending solely on Amazon for your supply chain. As the holiday season approaches, it’s essential to adapt to these changes and prepare for potential disruptions. By staying informed and being flexible, you can help keep your business running smoothly this Q4.
Remember, timing is everything in logistics. Stay alert and be ready to adjust your plans to make the most of this busy season.
