You’ve likely heard about the warehousing shortage happening nationwide. This additional layer of Amazon warehousing may help the eCommerce giant solve that problem for FBA sellers.
Amazon is to insert an extra layer of warehousing in its parcel distribution infrastructure, between its fulfilment and distribution centres.
It has started trials with clients of its Fulfilment by Amazon (FBA) programme, feeding fulfilment centres “from upstream, for more seamless replenishment”.
“These new facilities are essentially for inventory staging,” said Rick Watson, founder and CEO of RMW Commerce Consulting. “Amazon wants to optimise them for holding inventory.”
John Haber, CEO of parcel logistics consultant Spend Management Experts, said the move would reduce the time to shift inventory to fulfilment centres and estimates that the upstream warehouses will be located within a day’s drive of these.