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Amazon faces overstocking problem, Cross-border e-commerce logistics under pressure

Overstocking is particularly bad in Amazon's US West warehouse and can cause problems for sellers, especially affecting the upcoming Prime Member's Day sale and increasing the risk of out-of-stocks.

Amazon faces overstocking problem, Cross-border e-commerce logistics under pressure

The overstock phenomenon is particularly severe in Amazon's West Coast warehouses in the U.S., with LAS1 and LAX9 warehouses being significantly affected, and appointments delayed until July and September, respectively. Other warehouses such as GYR2, GYR3, and LGB8 are also facing high rejection rates.

Overstocking causes difficulties for sellers, especially affecting the upcoming Prime Day promotions and increasing the risk of stockouts.

Warehouse Overstock Situation

  1. West American warehouses: LAS1 warehouse appointments are delayed until mid-July. LAX9 warehouse is severely overstocked, with appointment times pushed back to mid-to-late September.
  2. Other warehouses: More than ten other warehouses, including GYR2, GYR3, and LGB8, are overstocked, with some having rejection rates as high as 90%.

Causes of Overstocking

  1. Weather and Inventory Levels: Adverse weather conditions and increased inventory levels are the main causes.
  2. Amazon Layoffs: Amazon's layoffs have also impacted logistics operations, further exacerbating the overstocking issue.

Impact of Overstocking

  1. Sellers troubled: Overstocking problems in warehouses cause significant difficulties for sellers, affecting the upcoming July Prime Day sales promotions.
  2. Out-of-stock risk: If the overstocking issue remains unresolved, it could lead to a stockout crisis for sellers, impacting their sales performance.

Response Strategies

  1. Proper Shipment Planning: Understand the inventory and receiving capacity of each warehouse, and plan shipments accordingly. Distribute shipments to reduce the risk of overstocking at any single warehouse.
  2. Third-Party Logistics and Overseas Warehouses: Utilize third-party logistics platforms or overseas warehouse services. By leveraging cross-border logistics platforms' first-leg shipping to the U.S. and overseas warehouse services, flexibly respond to logistics challenges.

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