Amazon Adds Fully Managed Option to Supply Chain Services

Amazon has added a fully managed option to the lineup of supply chain services it offers to sellers.

The new fully managed Supply Chain by Amazon solution will be available to all U.S. sellers for domestic pickups in October and will be expanded to global pickups by the end of the year, the company said in a Wednesday (Sept. 18) blog post.

The option offers a turnkey solution automating the movement of products through Amazon’s supply chain services, according to the post.

“Sellers simply provide product details and pickup locations and Amazon oversees the rest, including carrier pickup, inventory consolidation, strategic replenishment and placement into fulfillment centers nearest to customers, and continuous analytically driven optimization based on demand, inventory levels and costs,” Dharmesh Mehta, vice president, worldwide selling partner services at Amazon, wrote in the post. “It’s as easy as pushing a button, and sellers reap the benefits of working capital gains, increased sales and a lot less effort.”

Sellers can select to use this fully managed Supply Chain by Amazon option or to continue to choose which supply chain services they want to use and manage decisions on product movement on their own, per the post.

The fully managed option joins the range of supply chain services Amazon offers to sellers, according to the post. Supply Chain by Amazon allows sellers to leverage the company’s logistics, warehousing, distribution, fulfillment and transportation to move products from manufacturers to customers.

Hundreds of thousands of sellers use at least one of these services, and the number of sellers who use more than one of the services tripled in the first half of 2024, per the post.

“With Amazon’s years of supply chain expertise, we can keep products in stock, at the right locations, to deliver to customers at the fastest speed ever,” Mehta wrote in the post. “For sellers, rapid delivery is a big boost to their businesses because it drives increased sales conversion, and in fact, sellers are seeing that by using the fully managed option and having Amazon improve their delivery speed, their sales are increasing by an average of 20%.”

Amazon launched Supply Chain by Amazon in September, saying this comprehensive set of supply chain services will allow sellers to focus on product development and business growth, while Amazon takes care of the complexity of logistics.

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