Amazon Now Asking For In-Bound Fulfillment by Amazon Shipments to Three Different Receiving Centers
We have already been braced for trouble ahead with Amazon inventory limits and delayed fulfillment center receiving times. Now, starting November 1, 2021, Fulfillment By Amazon (FBA) sellers may be directed by Amazon to ship inventory to three different Amazon receiving centers, selected based on the geographic region that you’re shipping from. This will impact less than truckload (LTL), full truckload (FTL), and pallet-ized shipments. The change could impact receiving times, although Amazon is saying that the change may result in faster delivery to customers.
Amazon says:
“If you see your shipment plans being directed to three receive centers for standard-size items, you’ll get fulfillment fee discounts for eligible SKUs in those shipments. In addition, faster delivery promises to customers may result in increased sales.”
“You can sign up for the Inventory Placement Service and send all of your eligible inventory to a single receive center or fulfillment center When the shipment arrives, it is split up and sent to different fulfillment centers for you. A per-item service fee applies.”
Potential Decreases to Vendor Central 1P Orders From Amazon in Q4
Our industry sources are telling us that Amazon will be prioritizing certain categories (such as Toys) over other categories in Q4, to also free up their fulfillment centers. This means that companies working in Vendor Central 1P relationships with Amazon may see a decrease in orders from Amazon starting in October and November. This is a situation that we’ve seen in past years as well, and may disproportionately affect lower margin categories.
What This All Means For You
With our strategic partner DM Fulfillment, there are several ways we can help reduce the risk of FBA, or provide a “contingency plan” for your 1P business:
- Turnkey Commerce: With Turnkey Commerce, we buy the product from you at wholesale. Hinge Global and DM Fulfillment would represent your brand exclusively on multiple eCommerce channels – not just Amazon but also Walmart.com, Target+, Petsmart.com, Petco.com, Office Depot.com, Staples.com, and more. Also, DM Fulfillment has Seller Fulfilled Prime certification, so if your product meets the requirements, you may be able to retain your Amazon Prime badge with our listings.
- Turnkey FBM: Turnkey FBM (Fulfillment by Merchant) is a simplified solution designed to eliminate the challenges and restrictions of FBA and give you more control over fulfillment. We offer Direct-to-consumer fulfillment expertise and fast, cost-effective shipping.
