Imagine carefully preparing your goods, shipping them to the designated warehouse with high hopes, only to be told they were delivered to the wrong location. Not only does this delay shelf placement, but it also results in unnecessary freight cost differences. For cross-border e-commerce sellers, this frustrating scenario may soon become far less common.
Amazon's recent backend update directly targets the industry's "far warehouse, near delivery" gray area, offering sellers a substantial "peace of mind" package.
The Hidden Problem: "Far Warehouse, Near Delivery"
2022 proved challenging for cross-border e-commerce sellers. Pandemic fluctuations, flight cancellations, and quarantine policies created supply chain disruptions, order reductions, and unexpectedly weak peak seasons. While sellers struggled, logistics companies—particularly shipping firms—profited immensely. COSCO Shipping's financial reports showed revenues exceeding 300 billion yuan in the first three quarters of 2022, with employee bonuses turning heads.
Freight forwarders, as key players in the logistics chain, naturally shared in these profits. However, some unscrupulous forwarders engaged in the "far warehouse, near delivery" scheme to maximize gains.
This practice involves shipping goods to a closer warehouse (e.g., West Coast U.S.) instead of the designated distant location (e.g., East Coast U.S.). Since West Coast transportation costs typically run lower, forwarders pocket the difference while sellers bear the consequences.
One industry forwarder admitted: "This operation usually uses AGL trucks, which offer cheaper rates than self-operated fleets for West Coast warehouses. When East Coast shipments cost thousands per truck, some 'creativity' becomes necessary to maintain low prices."
Amazon's Solution: System Upgrade Closes Loophole
Cross-border sellers have long faced challenges with initial logistics pitfalls. Amazon's system upgrade now allows sellers to clearly view actual delivery warehouses through the backend "Registered" page, effectively identifying misdeliveries.
Previously, Amazon's system accepted goods even when delivered to incorrect warehouses, creating an exploitable loophole. The new feature displaying receiving warehouses addresses this vulnerability.
Beyond Cost Differences: Wider Impacts
The "far warehouse, near delivery" issue extends beyond unfair freight charges:
- Extended Shelf Time: Misdelivered goods require secondary transfers, significantly delaying placement. During this period, sellers cannot effectively expedite Amazon's processing.
- Account Performance: Amazon now considers warehouse accuracy in seller evaluations. Frequent errors may trigger warnings or even sales permission suspensions. The platform requires 70%+ appointment accuracy for warehouse deliveries, with four sub-70% occurrences within eight weeks potentially suspending operator center accounts.
Standardized Operations: The Path Forward
Amazon's increasingly standardized operations benefit compliant sellers, as unfair competition decreases. This move protects seller interests while promoting healthier industry development, signaling promising opportunities for dedicated cross-border e-commerce participants.
Seller Protection Guide
Beyond relying on Amazon's updates, sellers should proactively guard against risks:
- Reputable Forwarders: Prioritize service quality and reputation over price alone, consulting peer reviews when selecting partners.
- Detailed Contracts: Clearly define routes, costs, timelines, and liabilities before cooperation.
- Real-Time Tracking: Monitor shipments closely, addressing anomalies promptly.
- Bill Verification: Scrutinize charges against contract terms, requesting detailed breakdowns for discrepancies.
- Amazon Data Utilization: Regularly check the "Registered" page for delivery accuracy.
Embracing Compliance for Future Success
In today's standardized e-commerce environment, compliance remains key to sustainable growth. Amazon's update serves as both a warning and an opportunity—urging vigilance against risks while rewarding ethical operations. Only through compliance can sellers secure lasting success in this competitive marketplace.