Dive Brief:
- Amazon is recommending third-party sellers place their holiday inventory in the company's fulfillment network by Oct. 26 to ensure they can be ready by the Black Friday ordering surge.
- In a message to sellers earlier this month, Amazon said its fulfillment center employees will focus on shipment receiving processes through October to ensure they're placed in the proper locations. In November and December, the company will shift its attention to processing customer orders.
- "This temporary shift in emphasis from receiving shipments to fulfilling customer orders will ensure faster delivery speed and maximize your sales potential during the holiday season," Amazon said.
Dive Insight:
Amazon is ramping up its operations again in preparation for the peak holiday shipping season, and it wants its sellers to have enough inventory in place to meet the expected spike in demand.
Most sellers will have higher inventory capacity limits in October and reduced capacity the following month, according to Amazon. The company didn't specify to what extent capacity would drop, but it said estimated limits in November will provide enough storage for six months of inventory.
Sellers needing additional capacity can request to increase their limit with the company's capacity management system. Amazon also said sellers can use its warehousing and distribution service to automatically replenish fulfillment centers when needed.
"With continued investments in our fulfillment network and new program offerings, coupled with your focus on ensuring healthy inventory levels by October 26, we’re excited to partner with you and deliver yet another successful holiday for customers," Amazon said.
October will also mark the start of higher fees for sellers using Amazon's fulfillment services, which are calculated and charged when shipments leave company warehouses. The peak season fees are active from Oct. 15 to Jan. 14.
However, sellers using Amazon Warehousing and Distribution won't have to worry about elevated storage fees during the holidays this year. The company announced Tuesday that it's eliminating peak pricing during Q4 for this service.
Walmart, which is expanding its own marketplace and fulfillment capabilities for third-party sellers, said it won't levy peak season storage fees for sellers who inbound inventory by Oct. 1.
