Amazon has announced plans to help make running physical stores just as easy as it has made running online stores.
The launch of Supply Chain by Amazon will see the ecommerce giant collect your inventory from manufacturing sites around the world before shipping it across borders and handling customs clearance on your behalf.
From here, Amazon promises to look after ground transportation and store your inventory in bulk while keeping your shelves full at Amazon facilities and other locations.
Supply Chain by Amazon
The company hopes that by taking care of the logistics, businesses can focus on more important aspects, such as developing new products and driving profitability.
Most noteworthy is the use of machine learning to predict which locations need restocking and when in an effort to keep products as close to customers as possible so that they can be available via same- and next-day delivery. Amazon reckons having these fast delivery methods available increases FBA unit sales by 15%.
While the company has proudly discussed its own network several times in recent months, business owners will also benefit from the Partnered Carrier Program, allowing them to benefit from Amazon-like delivery services from third parties “at up to 25% lower costs compared to alternatives.”
The company also looks to be scrapping fourth-quarter peak pricing for Amazon Warehousing Distribution, which has been a sticking point for many businesses during the busy holiday period. Companies can now expect to pay $0.42 per cubic foot year-round, compared with $0.87 for FBA standard-size storage and $2.40 at peak times. It also allows them to book long-term bulk storage for even larger discounts.
Amazon has not provided specific details with regard to the cost of Supply Chain by Amazon, but says that “increased efficiency, reduced storage costs, and significant discounts on AGL shipments” can all be expected compared with using each service individually.
Business owners can explore the firm’s webpage for more detail to see whether it suits their needs.
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