Amazon is on the verge of a hot holiday shopping season, and warehouses and distribution stations around the company are already running at full capacity. Amazon third-party sellers across the U.S. say it takes a week or more more to deliver to customers, usually only a day or two.
Amazon's warehouses and distribution stations are already operating at full capacity. Seven merchants and consultants from California, Texas, Wisconsin and Florida said they had to find another channel to deliver goods normally handled by Amazon logistics, which usually provides faster and cheaper services.
This situation lasted from the end of last week to this week. This is worrying for businesses, as online shopping will peak during the five-day period from Thanksgiving to Cyber Monday. A dozen other sellers have similar concerns.
Most of the goods delivered by Amazon logistics can still be delivered to customers in one to two days, merchants said. However, since Amazon has not issued a warning notice or explanation, it is difficult to determine whether there is a specific commodity category or the distribution of goods in a specific region has been affected.
One seller said that Amazon's own distribution system seems to give priority to the best-selling products and let businesses deliver less popular items themselves. This is similar to what happened earlier this year. When the novel coronavirus pneumonia swept across the United States, people were trapped at home, which made Amazon's logistics system overwhelmed.
In an email statement, an Amazon spokesman said the individual situations faced by third-party sellers are not necessarily common problems. "We haven't changed the way we deliver our products to our customers, we haven't moved goods from Amazon's warehouse to Seller's warehouse," he said. As always, we balance product supply through a variety of factors such as lowest price, availability, fastest delivery speed and highest sales volume. "
According to Adobe, U.S. consumers will spend $189 billion in November and December, up 33% from a year earlier, more than double the usual level. Amazon, on the other hand, accounts for 40% of online shopping in the United States, which means the company is under great pressure to improve customer satisfaction. According to the latest data from market research firm Rakuten intelligence, in the week of November 2, consumers suspended shopping due to the US election, and Amazon's average delivery time was a little more than two days.
Since the outbreak, Amazon has been working hard to improve its storage capacity. The company employs 250000 people and spends billions of dollars on new warehouses and distribution stations. To ensure that there are enough people to sort, pack and deliver goods, the company offers new employees a signing bonus of up to $3000.
But even so, many businesses say, it seems difficult for Amazon to keep up with delivery demand.
Molson Hart (Molson Hart), who sells plush toys and games on Amazon, says about 70 percent of inventory has been delayed for a week. He said Amazon would give priority to the most popular products and deliver them quickly, while lower-volume products were prone to delays.
"We expect longer delays and delivery disruptions next week, when the volume on Amazon's platform will increase fivefold," Hart said. In the past few years, consumers have become accustomed to placing orders until December 20 and receiving goods before Christmas. But this year, it's unlikely. "
A third-party seller of Amazon said that Amazon usually uses its own logistics system to package and deliver almost all orders. But over the weekend, Amazon asked him to deliver two products of his own, including a power tool. Amazon's warehouse clearly has this product. Another Wisconsin seller of flasks and large glasses said he needed to send his wares to customers in Michigan, Pennsylvania, New Jersey and Georgia in the past few days. Fearing retaliation from Amazon, the two sellers asked for anonymity.
The Wisconsin seller also said, "it's not about where the customer is. If there is any weakness in Amazon, this weekend has been fully reflected. "
After a brief lull in the US election, online shoppers have "made a comeback.". Adobe data shows that from November 21 to 23, online shopping spending in the United States soared by 49%, putting a lot of pressure on E-commerce's delivery ability. In recent weeks, Amazon's marketing team has been persuading customers to shop early to prevent the company's logistics system from being overwhelmed by large orders.
Chad Rubin (Chad Rubin)'s software company Skubana help businesses sell products on multiple platforms. Mr rubin says amazon's transfer of goods to its own distribution system has some benefits. Too many businesses have relied too much on Amazon. In the early days of the outbreak, Amazon delayed the delivery of many orders, so that these businesses were caught off guard. This has prompted many businesses to improve their distribution capabilities and help Amazon survive its first holiday shopping season ."
"Amazon will do well," he said. Delivery methods are becoming more and more diversified, and many big businesses can let Amazon handle express delivery or self delivery. But the only drawback is that it doesn't have to be delivered in two days. "
James Thomson (James Thomson) was a third-party seller on Amazon and also helped third-party sellers sell goods on various platforms. "Consumers can tolerate late deliveries during the Thanksgiving weekend, which will give Amazon some relief ," he said. However, increasing delivery pressure will be accumulated until the week before Christmas, and express companies such as FedEx and UPS will not guarantee delivery by December 25.
"We expect sales to soar from December 15 to 24," Thomson said. A lot of customers still choose Amazon because they think Amazon can deliver goods in time during Christmas. "