Amazon Preps for Peak Season with Third-Party Seller Warehouse Restrictions
As eCommerce increases, Amazon is starting to prepare for peak season. Sellers were notified Monday that effective August 16th, warehouse space will be restricted based on inventory productivity for third-party sellers.
Sellers are able to improve their inventory productivity score by reducing excess supply and improving sell-through. Amazon believes that most sellers will not be affected by the restrictions.
With these changes, Amazon hopes to avoid the capacity issues it experienced during the onset of COVID-19. “Amazon is preparing for the worst, which in this case it could be the best holiday season in a generation,” Rick Watson, founder and CEO of RMW Commerce Consulting, told Supply Chain Dive.
In addition, Amazon will waive inventory removal fees and plans to open 33 new fulfillment centers throughout the year.
Amazon Rolls Out Bigger UPS and FedEx-Style Delivery Trucks
Amazon is releasing a new fleet with much bigger trucks, similar to those used by UPS and FedEx.
Amazon ordered “over 2,200 heavy-duty Utilimaster ‘walk-in’ delivery trucks from Shyft Group, a Michigan based speciality vehicle company” according to Autoblog. The order for these trucks was placed last year, and the fleet has been parked for months in lots across the country.
The release of the new fleet will allow Amazon to carry much larger packages as well as more packages overall. The new fleet will enable the company to make promised one and two-day deliveries to customers.