On September 18, Amazon announced the launch of a new fully managed end-to-end supply chain service, aimed at providing sellers with a complete solution to efficiently move products from manufacturers to customers. The service will be available to all U.S. sellers starting in October, with plans to expand globally by the end of the year.

The new supply chain service allows sellers to opt for a fully managed process. Sellers only need to enter product details and pickup locations, while Amazon takes care of the rest. This includes carrier pickup, inventory consolidation, strategic restocking, and placing products in fulfillment centers closest to customers. Additionally, Amazon will continuously analyze and optimize services based on demand, inventory levels, and costs, managing various supply chain processes. Through Amazon's efficient logistics, warehousing, and delivery network, sellers can deliver products to customers faster, saving time and costs.

When sellers use this service, they will benefit from integrated fees that include a 25% discount on Amazon Warehousing & Distribution (AWD) storage fees and a 15% discount on AWD shipping and handling costs.

However, sellers can choose to manage their own supply chain or use Amazon's services as needed. Amazon reports that hundreds of thousands of sellers already use at least one of Amazon’s supply chain services, and in the first half of 2024, the number of sellers using multiple services doubled year-over-year.

According to Amazon, this new service significantly speeds up product deliveries by optimizing inventory placement and streamlining operations. Sellers who choose the fully managed option see an average 20% increase in sales. Furthermore, Amazon is continuously expanding its global logistics capabilities to support cross-border shipments, having moved over 20,000 containers globally in August alone. In 2024, Amazon plans to quadruple its AWD capacity to meet the rapidly growing demand from sellers.

Amazon has also introduced a new Multi-Channel Distribution (MCD) feature to its AWD service. This feature provides sellers with unified inventory management, allowing them to more flexibly allocate inventory across different sales channels, improving inventory efficiency and reducing costs. MCD is expected to save sellers 20% in overall inventory needs, helping them conserve funds, avoid stockouts, and boost sales. Additionally, MCD offers customizable labeling, enabling sellers to distribute products in bulk to various sales channels, including other marketplaces, wholesalers, distributors, and even their own physical stores.