Amazon, the tech and e-commerce titan headquartered in Seattle, is set to revolutionize the world of third-party selling on its platform with the launch of “Supply Chain by Amazon.” This groundbreaking program promises an all-encompassing, fully automated suite of supply chain services, designed to guide independent merchants from the inception of their products to the moment they reach the customer’s doorstep.
Previously, Amazon extended support to third-party vendors through “Fulfillment by Amazon,” a service initiated in 2006, wherein Amazon managed the storage, packaging, shipping, and delivery of products for these sellers. Now, Amazon seeks to deepen its involvement in the supply chain by stepping in at an earlier stage.
A Comprehensive Supply Chain Solution
With Supply Chain by Amazon, the company will facilitate the seamless movement of products across the supply chain. This includes retrieving items from manufacturing facilities, transporting them across international borders, managing customs clearance and tariffs, and securing storage within Amazon’s extensive network of warehouses. Subsequently, Amazon will oversee the onward progression of these items through its fulfillment infrastructure to reach online shoppers.
Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, emphasized the benefits of this program for sellers, characterizing it as a simplification of the entire supply chain journey. By enhancing reliability, expediting processes, and reducing costs, Amazon aims to offer smaller businesses the gift of time. However, precise cost estimates for sellers availing Supply Chain by Amazon remain contingent on factors such as the product’s size, weight, and destination.
Amazon’s Commitment to Customer-Centric Innovation
Amazon’s commitment to third-party merchants is evident in its quest to automate supply chain segments, employing machine learning to predict inventory requirements and meet customer demand proactively. This initiative not only extends within Amazon’s warehousing network but also empowers sellers to transport their products beyond Amazon’s confines, enabling sales through various online and physical retail channels.
Dharmesh Mehta emphasized that this endeavor aligns with Amazon’s customer-centric philosophy, rooted in listening to customer feedback and working backward to fulfill their needs. In this instance, selling partners expressed the desire for a unified supply chain solution across their various sales channels, obviating the need for separate supply chains for each.
To implement this comprehensive solution of supply chain by amazon, Supply Chain by Amazon will harness its existing fulfillment infrastructure, supplemented by the assistance of select third-party contractors. Mehta indicated a long-term commitment to this journey, with sustained investments over the coming years. The objective is clear: to empower third-party sellers with an end-to-end supply chain experience, underlining Amazon’s unceasing commitment to customer satisfaction and innovation within the e-commerce industry.
