Cross-border e-commerce sellers often grapple with complex supply chain management challenges, from factory procurement to overseas warehousing and final-mile delivery. Amazon has now introduced "Supply Chain by Amazon," an integrated solution designed to liberate sellers from logistical complexities and allow them to focus on product innovation and business growth.
What Is Amazon Supply Chain?
Amazon Supply Chain represents an end-to-end supply chain management service that handles everything from collecting merchandise at manufacturing facilities worldwide to final customer delivery. This comprehensive solution includes cross-border transportation, customs clearance, ground transportation, bulk inventory storage, multi-channel replenishment management, and direct customer fulfillment.
Key Advantages of Amazon's Solution
This service leverages Amazon's global resources and technological infrastructure to provide sellers with unparalleled support:
- End-to-end visibility: A unified platform enables real-time shipment tracking, inventory monitoring, and demand forecasting for improved decision-making.
- Global logistics network: Amazon's extensive worldwide storage and transportation infrastructure ensures rapid, efficient cross-border shipping.
- Automated replenishment: Intelligent algorithms analyze sales data and inventory levels to prevent stockouts or overstock situations.
- Multi-channel distribution: Supports sales across various platforms including independent websites and physical stores.
- Cost efficiency: Economies of scale and process optimization reduce transportation, storage, and administrative expenses.
Operational Framework
The solution integrates multiple Amazon services into a cohesive ecosystem:
1. Product shipment to Amazon: Sellers can utilize Amazon Global Logistics (AGL) to transport inventory to Amazon Warehousing & Distribution (AWD) centers via sea, air, or land transport.
2. Inventory storage and allocation: AWD provides cost-effective bulk storage across global facilities, with upcoming multi-channel fulfillment capabilities.
3. Order fulfillment: The system automatically replenishes Fulfillment by Amazon (FBA) centers from AWD inventory, handling picking, packing, and shipping for Amazon orders. Buy with Prime purchases are fulfilled through Multi-Channel Fulfillment (MCF).
Business Impact
Early adopters report significant benefits including:
- Operational efficiency gains allowing focus on product development and marketing
- Reduced logistical expenses through scale advantages
- Faster delivery times improving customer satisfaction
- Expanded sales channel opportunities
- Average sales increases of 15% through improved delivery speeds
The service has generated considerable interest among international sellers, many of whom anticipate substantial simplification of their supply chain operations. Amazon continues to refine the offering based on seller feedback and evolving market requirements.