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How Amazon’s Logistics Expansion Can Benefit You as a Seller
Akhil Nair
June 07, 2024
How Amazon’s Logistics Expansion Can Benefit You as a Seller
Amazon is making some big moves in logistics, and you can take advantage. Let’s break down what’s happening and how it can help your business.
Amazon’s Logistics Expansion
Amazon is speeding up delivery times and cut shipping costs. They’re going all out by acquiring a ton of new warehouse space and reshaping their distribution network. Here’s how they’re doing it:
🤯 16 Million Square Feet of New Warehouse Space
Amazon has leased or bought over 16 million square feet of warehouse space in the U.S. this year alone. That’s a massive addition to their existing 413 million square feet of industrial real estate in North America.
🚢 Nine Independent Regions
They’ve revamped their domestic shipping network from a centralized system to nine independent regions. This means goods are stored closer to customers, resulting in faster deliveries and lower costs.
⭐️ Pro Insight: In Q4 2023, Amazon saw a 65% increase in same-day or next-day deliveries in the U.S.
📍Multiple Inventory Locations
Amazon is pushing for both itself and third-party sellers to spread their inventory across various locations instead of centralizing it. They’ve been opening huge inbound receiving centers and leasing smaller warehouses in rural areas to cut down on final-mile delivery costs.
Why This Matters
⚡️ Faster Deliveries
With goods stored closer to customers, your products can reach buyers quicker. Faster deliveries can lead to happier customers and more repeat business.
🚚 Reduced Shipping Costs
Spreading inventory across multiple locations can lower shipping costs. This means more savings for you and potentially higher profit margins.
📦 Better Inventory Management
Having multiple inventory locations can help in managing stock levels more efficiently, reducing the risk of stockouts and ensuring that your products are always available for purchase.
Click here to learn how you can manage inventory better using advanced tools. Top 1% sellers use tools to make sure they never run out of stock.
🫂 More Customer Satisfaction
Speedy deliveries and reliable service can boost your seller ratings and reviews, attracting more customers to your listings.
Looking to boost your ROI in 2024? Check out our blog for expert tips and strategies. It’s a quick read that can make a big difference. Don’t miss it!
📊 Pro Tips
Consider these steps to make the most of Amazon’s logistics upgrades:
📦 Optimize Your Inventory
Spread your inventory across multiple Amazon fulfillment centers to take advantage of faster delivery times and lower shipping costs.
🏆 Stay Competitive
With improved logistics, you can offer competitive delivery options that can help you stand out from other sellers.
🫂 Focus on Customer Experience
Use the savings from reduced shipping costs to enhance other areas of your customer experience, like offering better packaging or customer service.
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