Amazon closes 42 FBA warehouses! North American storage capacity declines rapidly

Recently, foreign media broke the news that Amazon is closing FBA warehouses across the United States and canceling some warehouse expansion plans, with a total of more than 42 warehouses! The area being removed is nearly 2.32 million square meters!

Last week alone, Amazon notified the Maryland government that it would close two local FBA delivery stations next month. Both stations have hundreds of employees, and Amazon will lay them off after reasonable compensation arrangements. Such large-scale reductions in FBA warehouse operations are increasing. In the second quarter, Amazon's headcount decreased by about 100,000 people, which is the largest quarter-on-quarter contraction in Amazon's history.

The news also revealed that in Amazon's warehouse closure plan, the ones that will be directly closed are basically FBA delivery stations, while large FBA fulfillment centers will be gradually separated from the FBA system and finally closed by stopping warehousing and terminating the contract upon expiration. For Amazon, which has fulfillment centers covering thousands or tens of thousands of square meters, this closure method has the lowest cost and impact.

You should know that Amazon has been expanding its recruitment in the fall and spring of previous years. In the past, Amazon would hire tens of thousands of temporary positions to handle the orders for the two major promotions, Prime Day and Black Friday Cyber ​​Monday. However, this year , instead of hiring, Amazon laid off a large number of employees , which makes people worry about whether the delivery during this year's peak season will be in trouble.

According to Amazon, FBA warehouses are now in a state of serious overcapacity and overstaffing, and closing some warehouses will not affect storage and delivery during the peak season. However, while the official said it would not affect, it is limiting the number of sellers replenishing goods.

For this kind of situation where they say one thing and do another, we only need to look at what they have done. Since the government has restricted the storage capacity, there is a high probability that there will be a shortage of storage capacity and delivery during the peak season this year. Everyone must re-plan the delivery plan for the peak season at the end of the year. Amazon's policy changes are really fast this year, and you will miss out on big things if you are not careful. Everyone can join our core selling circle to get the news first, and we can also discuss how to deal with it together and study the balance between expansion and profit.