Amazon has launched a new service called Supply Chain by Amazon, which manages end-to-end supply chain operations for online merchants. This service covers everything from taking products out of the factory to delivering them to customers worldwide, not just through e-commerce platforms, but also by distributing them to physical stores.
Prior to this, Amazon had a service called Fulfillment by Amazon (FBA), which handled inventory management, packaging, and delivery since 2006. Sellers could store their products in Amazon’s warehouses without having to worry about packing and shipping themselves.
Supply Chain by Amazon is an upgraded version of FBA, offering additional features such as global pickup from factory locations and international transportation management, including import taxes, without sellers needing to physically handle the products.
This end-to-end supply chain system consists of four components:
1. Amazon Global Logistics (AGL) – a global cross-border transportation network.
2. Partnered Carrier Program (PCP) – a domestic transportation network within the United States.
3. Amazon Warehousing Distribution (AWD) – which manages products in warehouses and distributes them. It also includes a new sub-service called Multi-Channel Distribution (MCD), responsible for distributing inventory from central warehouses to other sales channels, such as physical stores.
4. Fulfillment by Amazon (FBA) – the packing and delivery system.
Supply Chain by Amazon has now begun providing services to merchants in the United States.
TLDR: Amazon has introduced a new service called Supply Chain by Amazon, which offers end-to-end supply chain management for online merchants. It includes features such as global transportation, import tax handling, and distribution to physical stores. This service builds upon the existing Fulfillment by Amazon (FBA) service and is now available to US merchants.