Recently, Amazon officially announced that it will hold the 2024 Prime Day event in July. Sellers are all actively preparing for the first peak season of this year, hoping to achieve a significant increase in order volume through this big promotion opportunity. However, judging from the recent situation, logistics issues have become a major problem that sellers have to face.
Since May, multiple warehouses of Amazon in the US West have encountered problems such as inability to operate normally, serious overstocking, temporary closures, and frequent rejections of goods, resulting in significant delays in the warehousing time of sellers’ goods.
The currently affected warehouses include GYR2, XLX7, VGT2, LGB8, SMF6, SMF3, GYR3, ORD2, IGQ2, MDW6, XLX7, ALB1, ONT8, SBD1, etc. Among them, the overstocking situation in the GYR2 warehouse is particularly serious. As early as February, there have been frequent rumors of appointment changes or even warehouse closures, and the unloading process is also very slow. As of May 7, there were still 40 trucks waiting in line to unload, and the overstocking situation was extremely serious. It is recommended that everyone make reservations for other warehouses.
The recent overstocking of a large number of Amazon warehouses in the US West is mainly affected by the following factors:
1.Many regions in the United States are continuously being hit by severe weather.
According to foreign media reports, from the evening of May 7 to May 8, strong storms hit many places in the United States. Affected by the severe weather conditions, transportation vehicles may be blocked, and the operation of warehouses will also be affected, resulting in the inability of goods to be delivered and warehoused in a timely manner.
2.With the increase in stock preparation, Amazon warehouses are in short supply.
During the big promotion period, consumers’ purchasing demands surge. To avoid stockouts and the inability to deliver normally after consumers place orders, both Amazon and sellers will stock up in advance. However, the increase in stock preparation has also led to insufficient storage space in warehouses, thus triggering the overstocking phenomenon.
3.Amazon’s large-scale layoffs have led to a shortage of warehouse labor.
Since the beginning of this year, Amazon’s layoff plan has been continuing. This series of operations has led to a shortage of warehouse labor. The efficiency of warehousing and logistics has dropped significantly, further exacerbating the overstocking situation.
Due to the serious overstocking of warehouses this time and the influence of extreme weather, it is currently impossible to accurately know when this situation can be improved. Meiou Cloud Warehouse reminds relevant sellers to make plans in advance to avoid disrupting the stocking rhythm during the peak season and causing unnecessary losses. Here are some suggestions:
1.Monitor inventory status in real time, predict future sales based on past data, set safety stocks for products that may face stockout risks, and make corresponding replenishment decisions.
2.Plan the stocking plan in advance, flexibly adjust the shipping plan according to inventory and market demand, and reserve sufficient time for stocking, warehousing, and shelf placement.
3.Keep a close eye on the dynamics related to warehousing and logistics, and adjust warehousing and transportation plans in a timely manner to ensure that goods can be delivered and warehoused in a timely manner.
4.Explore diversified logistics channels. Besides relying on Amazon’s FBA service, sellers can consider using third-party logistics and warehousing companies for goods transportation and warehousing to reduce dependence on Amazon warehouses.
