If You’re Sending Inventory to Amazon’s West Coast Facilities, Here’s an Important Update
If you’re sending inventory to Amazon’s West Coast facilities
here’s an important update:
West Coast Amazon Congestion at Critical Level
Due to heightened congestion at Amazon’s West Coast fulfillment centers, Advanced Warehouse Distribution (AWD) and all cross-docking facilities (IXDs) are now at capacity. This backlog is causing significant delays, forcing Amazon to take action with new policies:
Incentives for East Coast Shipments: Amazon is reducing the inbound placement service fee by $0.05 per unit for shipments directed to East Coast facilities to alleviate the West Coast backlog.
Extended Shipment Closure Windows: Amazon is extending the closure window to 90 days and the abandoned shipment window to 45 days for shipments created between August 7 and October 31. It’s a good time to cancel shipments you won’t be sending to avoid capacity penalties.
What’s Causing the Bottleneck?
The core issue stems from Amazon’s national and regional cross-docking (IXD) systems, which distribute goods to fulfillment centers. The surge in Q4 demand has overwhelmed these facilities, adding weeks to the standard processing times.
While Amazon has suggested redirecting shipments East, there are limitations with this solution, especially with November and December appointment slots expected to be even more restricted.
Amazon is also reconfiguring multiple warehouses mid-Q4, which can further impact fulfillment processes—meaning the “just-in-time” strategy might not be feasible this holiday season. Delayed shipments may result in stockouts, late deliveries, and missed sales.
Action Steps for Sellers
To avoid Q4 disruptions, consider adjusting inventory plans to account for these bottlenecks and explore alternative fulfillment solutions to maintain customer satisfaction during the busy season.
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