Supplier News

Amazon is intensifying its efforts in parceling, packaging, and delivering orders.

Here are the main takeaways from Amazon’s annual seller conference in Seattle

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Courtesy of Amazon

Amazon aims to revolutionize the supply chain in the same way it transformed fulfillment.

At its recent seller conference, the tech giant unveiled a fully automated supply chain solution designed for merchants. Amazon is intensifying its efforts in parceling, packaging, and delivering orders by encouraging sellers to utilize its logistics services, such as Amazon Warehousing and Distribution (AWD) centers, Fulfillment by Amazon, and Multi-Channel Distribution. This initiative is focused on enabling sellers to deliver orders placed on platforms beyond Amazon itself. While these paid services have been available to brands on a piecemeal basis, this year, Amazon plans to integrate them all into a single dashboard.

In this new supply chain approach, sellers only need to enter product details and pickup locations, while Amazon “oversees” the entire process—from carrier pickup to inventory consolidation, and identifying the nearest fulfillment centers, as noted by Dharmesh Mehta, Amazon’s VP of worldwide selling partner services, in a company blog post.

“It’s as easy as pushing a button,” Mehta explained.

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Amazon has been testing this tool for about a year, and it will be available to all US sellers starting next month. Ryan Craver, founder of the e-commerce agency Commerce Canal, shared with Retail Brew that the main focus of the two-day Amazon event was the supply chain. “Amazon wants to ‘own’ the supply chain and become the toll booth of commerce, whether shipping to a TikTok, Temu, Costco, or Amazon consumer,” he stated.

With Supply Chain by Amazon, the entire journey can be simplified for brands, potentially reducing shipping costs as well. “When sellers use this service, they qualify for AWD integrated rates, which include a 25% discount on AWD storage fees and a 15% reduction in AWD transportation and processing costs—making it an even greater value,” Mehta added.

In addition to supply chain innovations, Amazon is also rolling out Project Amelia, a new generative AI-powered personal assistant for sellers. Amazon is intensifying its efforts in parceling, packaging, and delivering orders through this initiative, which aims to provide brands with personalized, data-driven insights on their operations, including inventory status and traffic metrics like conversion rates, as well as guidance on preparing for the holiday season.

Currently, Project Amelia is being tested with a select group of US sellers and is expected to expand in the coming weeks. Later this year, it will also begin a phased rollout internationally in languages beyond English.

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