For cross-border e-commerce sellers, the real chill of winter may not come from the frigid winds of the northern hemisphere but from the relentless "alarms" sounding across Amazon's warehouses. Recently, multiple Amazon fulfillment centers in the U.S. have faced operational disruptions, with some even shutting down entirely, leaving countless listings in limbo. Is this a natural disaster or a man-made crisis? And how can sellers navigate this sudden turmoil?
1. Warehouse Paralysis: A Race Against Time for Listings
Last week, a winter storm swept across the central and southern U.S., forcing the closure of Amazon's AFW1 warehouse due to structural damage. Repairs are expected to take up to two months. But this is just the tip of the iceberg. Sellers are reporting that multiple high-demand warehouses are suspending operations, creating a desperate scramble to keep listings active.
One seller disclosed that after contacting Amazon support, they received confirmation that SMF3 warehouse was temporarily closed for internal repairs, with all inbound shipments rejected. Another seller noted that their inventory had been sitting at a warehouse for over two weeks without being processed. Freight forwarders have also issued urgent alerts: popular warehouses like GYR3 and SBD1 are now refusing truck entries, with all appointments for pallet and direct deliveries canceled indefinitely.
Additional bottlenecks include:
- LAX9: Pallet and container deliveries face wait times exceeding 36 hours.
- QXY9: Appointments are being canceled, with new slots pushed to May.
- SCK1: Five out of seven scheduled pallet deliveries were rejected last week.
According to logistics providers, the most severely affected warehouses include:
- Overcapacity zones: SBD1, LAX9, GYR3, SCK1. Internal maintenance has delayed appointments by 15–20 days.
- Blizzard-impacted zones: FTW1, DFW6, FTW5. Snowstorms in Dallas, Texas, have caused road closures and power outages, crippling warehouse operations.
- Closed for repairs: SMF3. All appointments are postponed indefinitely.
- Appointment black holes: QXY9. Amazon has not approved any new delivery slots.
- Operational constraints: KRB7 and AWD satellite warehouses. The earliest available pickup dates stretch into late May or early June.
2. The Perfect Storm: Why Amazon Warehouses Are Struggling
Industry experts cite multiple factors behind the disruptions:
- "Far-warehouse, near-delivery" fallout: Amazon's recent policy shifts may have exacerbated warehouse congestion.
- Mass layoffs: Workforce reductions have led to labor shortages, slowing inbound processing and outbound deliveries.
- Internal restructuring: Amazon could be optimizing its logistics network, causing short-term inefficiencies.
3. Amazon's "Slimming" Strategy: Challenges and Opportunities for Sellers
Amazon's logistics downsizing reflects broader financial pressures. Despite Q4 holiday promotions, product sales fell 1.2% to $70.5 billion, with online sales dropping 2.3% year-over-year. Inflation and post-pandemic overexpansion have forced cost-cutting measures, including:
- Layoffs: Over 99,000 warehouse jobs were cut in July 2022 alone, with global reductions continuing into 2023.
- Warehouse divestments: Amazon is subleasing or terminating leases for excess storage space.
For sellers, this creates three major hurdles:
- Storage limits: Reduced capacity disrupts inventory planning.
- Delivery delays: Labor shortages prolong processing times.
- Rising costs: Increased FBA fees and advertising expenses squeeze margins.
Yet opportunities exist:
- Diversify logistics: Explore third-party warehouses or overseas fulfillment centers.
- Optimize operations: Improve inventory turnover and listing quality.
- Build brands: Focus on customer loyalty to offset platform dependency.
4. Survival Tactics: How Sellers Can Adapt
To mitigate risks, sellers should:
- Monitor warehouse status updates daily.
- Distribute inventory across multiple fulfillment centers.
- Leverage Amazon’s Multi-Channel Fulfillment for non-Amazon sales.
- Adopt data-driven inventory forecasting.
- Enhance listings with SEO-optimized content and high-quality visuals.
- Prioritize responsive customer service to maintain ratings.
While Amazon CEO Andy Jassy has pledged to restore one-day Prime shipping, no timeline exists for resolving current warehouse crises. Sellers must remain agile, balancing short-term contingencies with long-term strategic pivots.