In an unexpected move that has sent shockwaves through the e-commerce community, Amazon has abruptly designated two FBA warehouses—OLM1 and SBD3—as exclusive facilities for its Amazon Global Logistics (AGL) service. This policy shift means only shipments transported through AGL can now access these warehouses, leaving many third-party logistics providers and their seller clients in limbo.
The "Exclusive Warehouse" Controversy: Mounting Seller Anxiety
Online forums have erupted with concerns from distressed sellers. "My shipment was already assigned to OLM1, and now I'm told it's an Amazon-only warehouse—what am I supposed to do?" one seller posted in desperation. Numerous merchants report having their inventory automatically assigned to OLM1 without using AGL services, creating uncertainty about whether their goods will be accepted.
"Many third-party logistics providers have been using OLM1 for truckload shipments."
"I created my shipment in March and got assigned to OLM1. My goods arrive at port on the 25th via UPS delivery—will they still be accepted?"
"Same situation here. We didn't choose AGL, shipped from an overseas warehouse address, and still got assigned to OLM1. This is unacceptable."
These complaints highlight the logistical nightmares sellers now face—potential cost increases, delivery delays, and even stranded inventory. The sudden policy change has left many businesses scrambling to adjust their supply chain strategies.
AGL's "Exclusive Warehouses": Amazon's Logistics Power Play?
This isn't Amazon's first warehouse exclusivity move. Previous designations included ONT8, ND5, and SDF8 as AGL-only facilities. Typically, sellers not using AGL wouldn't receive assignments to these warehouses. However, the OLM1 situation appears different, leading many to speculate whether Amazon is strategically pushing sellers toward its proprietary logistics services.
Industry observers suggest this could represent another step in Amazon's broader strategy to consolidate control over its fulfillment network, potentially making AGL the dominant logistics solution for FBA sellers.
The AGL Proposition: "Locked Inventory" Benefits Versus Potential Drawbacks
Amazon Global Logistics offers international shipping services for FBA sellers across major markets including the U.S., Europe, and Japan. Its most attractive features include "inventory locking" (preventing split shipments) and storage capacity expansion—both offered at no additional cost to AGL users.
However, the service isn't without criticism. Some sellers report higher costs compared to third-party providers, inconsistent delivery times, and slower customer service response rates. While the inventory locking feature proves valuable for many, sellers must carefully weigh these trade-offs when considering AGL.
Navigating the New Warehouse Reality: Strategies for Sellers
As Amazon continues evolving its fulfillment policies, sellers can take several proactive measures:
Monitor official announcements: Staying informed about policy changes can prevent costly disruptions.
Diversify logistics options: Working with multiple logistics providers helps mitigate risk.
Maintain open communication: Regular updates with logistics partners ensure timely adjustments to shipping plans.
Evaluate AGL objectively: Conduct thorough cost-benefit analyses before committing to Amazon's service.
Optimize inventory planning: Strategic stock management minimizes potential fulfillment bottlenecks.
The recent warehouse policy change underscores the dynamic nature of e-commerce logistics. While presenting challenges, it also offers opportunities for sellers to refine their operations and build more resilient supply chains in an increasingly competitive marketplace.