Amazon's exclusive warehouse prohibits freight forwarding? Sellers' shipments may be rejected!

Amazon's exclusive warehouse prohibits freight forwarding? Sellers' shipments may be rejected!


It is learned that in 2022, Amazon's net loss reached 2.7 billion US dollars, the worst performance in history. According to analysts' estimates, the outbreak of the sequelae of excessive expansion of the epidemic and the reduction of profits in the environment of consumption downgrade are the main factors for Amazon's losses in 2022.
 
To this end, Amazon has taken a large number of cost-cutting and efficiency-enhancing measures in 2022, including layoffs and subletting warehouses.
 
As of 2023, Amazon's cost-cutting and efficiency-increasing strategy is still ongoing: not only has it announced another round of large-scale layoffs, but it has also tightened its scrutiny of logistics and distribution links.
 
PART 1
Amazon Global Logistics Statement:
These two warehouses are official exclusive!

 
It is learned that on March 20, Amazon Global Logistics issued a statement:
  • OLM1 and SBD3 warehouses are exclusive lock-up warehouses for Amazon's global logistics;
  • Only by shipping through Amazon Global Logistics can the goods be successfully delivered to the above two warehouses and enjoy the warehouse locking function.
 
 
Amazon Global Logistics stated that recently a freight forwarding company claimed that it could ship goods to the above-mentioned Amazon Global Logistics exclusive locked warehouse, so it specially issued this statement to remind sellers to protect their own interests and carefully identify relevant information to avoid losses.
 
According to the feedback from the freight forwarder, the goods can still be delivered to the OLM1 warehouse. As of yesterday, many freight forwarders still posted the news that the OLM1 warehouse can be booked in WeChat Moments.
 

However, the other warehouse mentioned by Amazon Global Logistics above - SBD3 warehouse, was "monopolized" by Amazon AGL as early as two years ago , causing many freight forwarders to complain: Amazon is really unkind and is stealing jobs from freight forwarders.
 
The picture comes from the seller communication group

Some freight forwarders believe that the statement released by Amazon Global Logistics is aimed at Amazon's warehouse locking service . Freight forwarders can still deliver sellers' shipments to the OLM1 warehouse, but they cannot lock the warehouse.
 
However, some freight forwarders have discovered that Amazon Global Logistics specifically noted in its statement that “only by shipping through Amazon Global Logistics can the goods be successfully delivered to the above two warehouses.” Therefore, they speculate that the subsequent OLM1 warehouse may be "monopolized" by Amazon AGL like the SBD3 warehouse.
 
 
A few days ago, after receiving this statement from Amazon Global Logistics, many sellers could not help but feel worried about the status of the shipments that had already been sent to the OLM1 warehouse.
 
PART 2
The shipment has been sent to OLM1
Sellers are worried!

 
It was learned that shortly after the statement was issued, a seller posted a question on the forum: In early March, the shipments were divided into warehouses, and two of them were distributed to OLM1 . I thought it was a newly opened unpopular warehouse and the goods were shipped out. I saw the notification and realized that this was Amazon’s exclusive global logistics warehouse. Am I being cheated?
 
The picture comes from Zhiwubuyan

This post resonated with many sellers. Many sellers said that without joining AGL, their shipments were sent to the so-called AGL exclusive lock-up warehouse by the Amazon system:
"The shipment was built around March 3 and was also assigned to OLM1. It arrived at the port on the 25th. It was delivered by UPS. I am worried whether it will affect the receipt."
"For those who did not choose the overseas warehouse address used by AGL for shipment, OLM1 was also built by us."
“Many freight forwarders have warehouses like OLM1.”
 
Some sellers even speculated: Normally, if you do not join AGL, you will not be assigned to these two warehouses. It is estimated that Amazon's warehouse distribution system has made a mistake again, or Amazon is guiding sellers to use AGL.
 
It is understood that AGL actually refers to Amazon's cross-border logistics service, which can provide cross-border sea and air first-leg logistics services for sellers using FBA. The current service sites cover the United States, Europe and Japan.
 
What sellers should pay most attention to about AGL is its lock-up and expansion services:



  • After joining AGL, sellers can apply to Amazon for warehouse lock for free , reducing the extra costs caused by warehouse division and improving warehousing efficiency;
  • Sellers who have opened Amazon's official AGL satellite warehouse can apply to the AGL manager for capacity expansion free of charge.


As we all know, Amazon sellers have been suffering from unlimited warehouses and storage capacity restrictions recently, and the AGL project is undoubtedly aimed at these symptoms of sellers.
 
However, some sellers pointed out sharply that whether it is unlimited sub-warehouses, storage capacity restrictions, or the statement released recently, it is very likely that they are "means" for Amazon to guide sellers to use official AGL satellite warehouses.
 
In addition, according to feedback from some sellers, AGL's service has many advantages at first glance, but it also has some disadvantages:
  • The AGL process is complex and cumbersome, and customer service feedback is slow and the attitude is poor;
  • The amount applied for through AGL is not much and the time is short, which is not a long-term solution to solving logistics and delivery problems.
 
In general, for sellers who urgently need to solve the problem of warehouse distribution, joining AGL is indeed effective. However, AGL still has many shortcomings, and Amazon sellers need to consider whether to use this service based on other factors.
 
As of now, Amazon has not yet explained the situation of the system distributing sellers' shipments to the OLM1 warehouse, so the above analysis can only be used as a reference. In order to avoid unnecessary trouble in the future, we would like to remind relevant sellers to check the logistics information in time and try to contact Amazon customer service to solve related problems.
 
What do you think of this? Welcome to discuss in the comments section~


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