Amazon's peak season hits, multiple warehouses continue to explode!

 

 

With the approach of the peak business season in the second half of the year, the demand for cargo transportation has risen sharply, resulting in serious position tension on major routes around the world, the so-called "warehouse explosion" phenomenon. At the same time, Amazon's many logistics centers have not been spared, and they have reported the problem of warehouse capacity saturation, and almost all routes have been affected to varying degrees.

 

 

 

 

 

01

Almost all routes are out of position

 

According to the recent information collected from the front line of the market, as of the end of October, most of the routes have been out of stock, and the tension of some routes has beenContinuation to November.

 

Specifically, inIn terms of American routesAt the end of October, the US-West and US-East routes were basically in short supply and positions were difficult to find. Although there are still a few shipping companies that can still provide limited booking services, this tight state is expected to beIt continues until mid-November.

 

 

 

 

02

Reasons for warehouse explosion

 

The reasons for this situation are complex and varied, including the uncertainty of tariff policy caused by the U.S. election, customers' rush to ship to avoid potential risks, the advance of the national Spring Festival time, the controversy in the U.S. terminal automation process, and the potential risk of shutdown.

 

In terms of European routesAffected by the shipping company's announcement of a price increase in November, most of the ships were fully loaded at the end of October, and the price increase was significant.

 

Coupled with unfavorable factors such as suspension and delay in the first week of November in East China, the capacity of European routes is expected to decrease by about 28%. It has been revealed that shipowners are carefully considering the subsequent GRI (general rate increase) plan, but the subsequent decision will be based on market conditions.

 

Sino-Indian Red Sea RouteBefore the end of the month, prices on various routes generally rose, especially in the India-Pakistan region, which led to a follow-up increase in freight rates in the Middle East and the Red Sea.

 

South American RouteHowever, due to the arrival of the Christmas and New Year's shipping peak, the supply of ships is in short supply. At the end of October, there was also a warehouse explosion, covering the two major regions of East South America and West South America. It is expected that the freight rate will further rise in November.

 

Southeast Asia MarketAlso not spared, the overall showing the double pressure of the explosion and price increases, some freight rates rose astonishingly. By the end of the month, most shipping companies have no positions to book, and the explosion in some areas has continued until the first week of November. At present, only positions in the second week of November can be booked. The market generally expects that subsequent freight rates may continue to rise.

 

In the face of the grim situation of the route burst, freight rates naturally rose. Prior to this, a number of shipping companies have announced that they will adjust freight rates in November, and recently, some companies have announced a new round of freight rate adjustment plans. Some industry experts are optimistic about the duration of this round of "shipment tide" and believe that it may continue until the end of the year or even January next year.

 

 

 

 

 

 

03

Amazon warehouse explosion

 

In terms of Amazon warehouses, several FBA warehouses have reported serious warehouse explosion problems, especially in the US-West region. The warehouse explosion situation is quite serious. In contrast, the warehouse pressure in the US-China and US-East regions has eased slightly. However, the following problems can not be ignored, including reservation cancellation, slow storage speed, long shelf cycle, etc. These problems have caused some sellers to face the dilemma of out of stock at the front desk.

 

 

 

 

Take the LGB8 warehouse in the western United States as an example. At present, the warehouse has been in a state of explosion, resulting in unfavorable situations such as deletion and pushing, which undoubtedly further aggravates the seller's operating pressure. In the face of this series of challenges, both inside and outside the industry are paying close attention to market dynamics and seeking effective coping strategies.

 

 

Regarding the recent reservation and storage status of each Amazon warehouse, we hereby make the following announcement:

 

For non-restricted situations, the confirmation time for card board appointments is approximately one week, while floor appointments take approximately two weeks to be implemented. Specific to each warehouse:

 

ABQ2 Warehouse:At present, we are facing extremely severe warehouse explosion challenges, with a rejection rate as high as 80%, resulting in card board and floor appointments being in a state of waiting for confirmation for a long time (pending), making it extremely difficult to obtain appointments.

 

PSC2 Warehouse:It is also affected by a serious explosion, with the reservation system continuously displaying pending status and frequent delays or cancellations of reservations.

 

ONT8 Warehouse:There has been a phenomenon that the appointment has been postponed or canceled. At present, the appointment has been scheduled to early November, and the situation is relatively tense.

 

SBD1 Warehouse:Also facing the problem of warehouse explosion, the reservation system is unstable, the card board reservation is difficult to obtain, and the floor reservation needs to wait three weeks before confirmation.

 

MIT2 Warehouse:The situation of warehouse explosion is serious, and the delivery appointment is canceled frequently. The card board and floor appointment are in a state of extreme tension, and it is almost impossible to obtain new appointment.

 

GEU3 Warehouse:Card board and floor appointments also face the challenge of being difficult to obtain, and the appointment status is waiting to be confirmed for a long time.

 

IUSP Warehouse:The problem of warehouse explosion is also prominent. The reservation is slow and limited in quantity. The card board reservation needs to wait for half a month before confirmation, while the floor reservation needs three weeks.

 

GEU5 Warehouse:The situation of warehouse explosion is extremely serious. The card board reservation needs to wait for one month before confirmation, while the floor reservation needs three weeks.

 

 

 

 

 

It is worth noting that ABQ2 and PSC2, as Amazon's new and popular warehouse this year, have attracted a large number of sellers to distribute their shipments. However, driven by the demand in the peak season, the problem of warehouse explosion in these two warehouses is particularly prominent. Appointments are frequently canceled or postponed, resulting in a large backlog of goods that cannot be stored in time.

 

 

 

04

Shelf time was forced to postpone

Many sellers' peak season sales plans have been hit hard.

 

After the goods are in storage, the significant lag in the shelving process has become a core issue of general concern to the seller community. Some sellers felt helpless and expressed their dissatisfaction:"The goods have been put into storage for more than 23 days, but they have not been put on the shelves. This is an incredible situation in the past."

 

In the golden period of peak season sales, every minute and every second is very important. If the goods cannot be sold on the shelves in time, it will directly lead to missing the ideal sales opportunity.

 

For seasonal goods and popular products, this may lead to the loss of a large number of orders, which in turn will have a direct and far-reaching negative impact on the seller's sales and profits.

 

In addition, the phenomenon of warehouse explosion has also led to a sharp rise in logistics costs, making sellers feel more pressure. On the one hand, the cost of inventory allocation has not been reduced due to the warehouse explosion, and sellers still need to bear this expensive expense; on the other hand, the warehouse explosion makes the logistics process more complex and challenging.

 

Sellers are complaining:"This is not only the case for U.S. warehouses, but also for European warehouses, which are facing the problems of slow delivery and slow shelves. The whole line is in trouble. This black five seems to have ended before it started."

 

To make matters worse, the warehouse explosion also exacerbated the difficulty of inventory management, the seller's operating plan was completely disrupted. Just completed the autumn promotion of the goods inventory, the seller has to face the black 5. net first-class promotional activities of the stock and delivery pressure.

 

However, the warehouse cannot receive and process the goods in time, resulting in the backlog of goods outside the warehouse or in transit can not be sold in time, which may lead to the embarrassing situation that the important promotion node is out of stock. This not only damages the seller's credibility and customer satisfaction, but may also cause inventory backlogs, further increasing the difficulty and cost of inventory management.

 

Sellers expressed strong doubts and dissatisfaction with Amazon's service quality and efficiency. They pointed out that Amazon charged high service fees but failed to provide high-quality service to match. Warehouse explosion, lost goods, business delays and other problems frequently, so that sellers are deeply disappointed and angry.

 

This incident once again highlighted the many challenges and difficulties faced by sellers in peak season sales, and also triggered a deep reflection on Amazon's service quality and efficiency.