Some time ago, the word “full hosting” entered the field of vision of cross-border sellers, and platforms such as Temu and shein launched “full hosting mode” one after another. All along, this model has also been very controversial.
Although Amazon has no exact plan to launch the traditional full custody mode, it has recently officially announced a new project-Amazon supply chain, that is, “logistics full custody”: contracting all transportation links of sellers’ goods from factory delivery to final delivery.
It is understood that Amazon is launching a brand-new supply chain service, which is a fully automatic end-to-end supply chain solution, aiming at providing sellers with efficient and reliable product transportation services and delivering products directly from manufacturers to customers around the world.
In the past, Amazon usually used the traditional Fulfillment by Amazon (FBA) service. The seller’s goods usually need to be shipped overseas through the first-hand logistics service after being manufactured in China, and then Amazon provides warehousing and logistics delivery services.
But now, through the new “logistics full custody” service, Amazon will provide a set of fully automated supply chain services for merchants on the platform, including picking up goods from factories around the world, cross-border first-hand transportation, handling customs clearance and tax affairs, storing inventory on a large scale, and managing sellers’ replenishment in other sales channels, and finally realizing the delivery of products to customers. Amazon described this service as “a comprehensive solution that will support customers’ entire supply chain”.
According to the official flow chart provided by Amazon, for different suppliers at home and abroad, sellers can choose AGL logistics, PCP plan and other services to transport the goods to AWD in Amazon warehouse, and then use FBA service to complete the product delivery of platform sales orders, or use MCF service to deliver them to other sales channels.
It is not difficult to see that the time is coming when Amazon will provide logistics services as another participant in the market. Amazon’s launch of an end-to-end integrated supply chain planning this time is ambitious.
At the same time, its multi-channel distribution service will meet the delivery needs of various sales channels outside Amazon, and help improve the FBA’s daily and next-day delivery rates, helping sellers to increase the number of goods sold by an average of 15%.
Amazon’s vice president of global sales partner service said that it will provide sellers with simple, fast and economical solutions to cope with increasingly unpredictable and complex logistics challenges.
However, the timing of Amazon’s launch of logistics full custody service is also intriguing. Amazon is suffering from some kind of turbulence, forcing it to find new business lines, rather than doing so when it is fully expanding. This makes us wonder: if the economic cycle changes, will Amazon stop providing this supply chain service?
Post time: Sep-20-2023