FBA warehouses exploded in many places! But Amazon is still renting out warehouses?

I just told you about Amazon’s shipping capacity yesterday, and today another piece of news came out that left me speechless. On one hand, the freight forwarder revealed that multiple FBA warehouses were full of goods, and on the other hand, Amazon was actually renting out warehouse space. . .

The period before Prime Day is the most stressful time for FBA warehouses. In previous years, the news of warehouse explosions began about a month before Prime Day. Is it so early this year? I collected a wave of feedback from sellers, and most sellers said that it is indeed slow. However, it is not that it has been slow recently, but it has been slow for a long time. Since May, various popular warehouses have been slow, including slow warehouse entry and slow shelf listing. It took half a month to complete the shelf listing.

It’s only May, and we haven’t seen the frequent warehouse overflows in previous years. The processing capacity of popular warehouses is already like this, which is really worrying. At present, the processing speed of non-popular warehouses is still quite fast. Sellers in the group who queue up in these warehouses have hundreds of goods put on the shelves in one day. If you need to prepare goods for Primeday and the time is tight and you need to put them on the shelves quickly, it is a better strategy to disperse them in unpopular warehouses. However, these replenishment plans have an uncertain factor, that is Amazon itself.

Just after I read the news about the warehouse explosion, I saw on the Internet that Amazon is renting out a large amount of FBA warehouse space, with the first batch renting out 10 million square feet of warehouse space.

Foreign media recently revealed that Amazon is renting out warehouse space in New York, New Jersey and California. Although the official did not disclose the specific location and size of the warehouses, internal documents obtained by the media showed that the leased area is at least 10 million square feet, or about 920,000 square meters.

Not only will the warehouses be rented out, but official sources have also revealed that some FBA leases that are expiring will not be renewed. The FBA system will enter a period of large-scale contraction, which is the first contraction in the history of FBA development.

Last week, when I talked about Amazon's delivery capacity, I also intercepted the words of an Amazon official spokesperson, "There is no plan to reduce warehouses and front-line workers for the time being." Now the official has quietly slapped itself in the face, not only renting warehouses but also terminating the contract to reduce the warehouse space it holds. It seems that FBA's current problems are very big, and the losses in the first quarter really scared Amazon.

This is actually easy for us to understand. There are definitely popular warehouses with good geographical locations, and there are also bad warehouses. It is common sense to cut down warehouses that are not used and merge them with surrounding warehouses. However, this involves a problem. Among other things, warehouses with fast shelving and warehousing speeds are mostly relatively idle. And these warehouses are precisely the warehouses that are likely to be "laid off" by Amazon. The warehouses that are merged or left are busy and popular warehouses. The warehousing and shelving speeds of such warehouses are definitely slow, so cutting warehouse space is definitely not a good thing for sellers.

In summary, for Prime Day this year, you must prepare goods early and deliver them to the warehouse early. Don’t put your hopes on FBA’s processing speed. Recently, everyone has been actively reporting which warehouses are slow/fast in the communication group. Sellers with delivery plans can come to the group to see everyone’s feedback and avoid warehouses with extremely slow listings! Sellers who are not in the group yet can scan the QR code to privately chat with me to create a group!