Amazon Experiencing Significant Warehouse Delays for Both FBA & AWD Ahead of Holidays

Amazon has been experiencing significant delays receiving inventory at many of its warehouses for both FBA and AWD right ahead of the holiday rush. Many sellers have felt these delays first hand over the last several weeks and on Wednesday Amazon publicly acknowledged these delays. 

Delays Have Been Going on for Weeks

Amazon on Wednesday acknowledged the significant delays sellers are experiencing sending in inventory to Amazon warehouses in a news update posted to Seller Central, “We understand many of you are experiencing longer receive times that are affecting your shipments. High demand has led to longer receive times at some of our West Coast inbound locations and for palletized freight. We are actively taking steps to resolve the situation including rerouting shipments to other regions to increase capacity.”

Another seller of medical products (who preferred not to be named), echoed similar sentiment, “There is absolutely no excuse for these delays. We had a shipment delivered a month ago to the distribution center that they have not begun to check in yet. It's sheer incompetence.” 

Sellers Frustrated with Push Towards AWD

Earlier in the year Amazon pushed sellers toward Amazon Warehousing and Distribution (AWD) in order to avoid “Placement Fees”. Placement fees are additional surcharges to ship inventory to fewer Amazon warehouses (inventory sent to AWD warehouses would not incur placement fees from Amazon). 

Backlash over the rollout of placement fees has been considerable and now sellers are expressing similar frustration over the Amazon Warehousing and Distribution. Kellene Oleary stated her frustration with AWD in no uncertain terms, “I'm so frustrated because Amazon forced us into AWD and then the whole program is collapsing. I could go on and on about my complaints about AWD.”

Will Warehouse Congestion Affect Holiday Sales?

With Black Friday and Cyber Monday rapidly approaching the timing for warehouse congestion is problematic for both sellers and Amazon. Amazon's Q2 earnings already disappointed many investors. Q3 results are expected to be released next week on October 31, 2024 and will likely shed light on Amazon's own forecast for the holidays and if they expect the receiving delays to affect performance.