Amazon Multi-Channel Distribution Function Launched, All-Channel Supply Available in One Inventory Pool Management

[Ebrun Original] Following the release of "Supply Chain by Amazon", Amazon has successively introduced multiple products to help sellers integrate and optimize the supply chain. Recently, the Amazon Warehousing Distribution (AWD) storage solution has launched a new feature, "Amazon Multi-Channel Distribution (MCD)", which allows sellers to transfer inventory from AWD warehouses to warehouses outside of Amazon's sales channels, requiring the management of a unified batch inventory pool.

Specifically, there are three major advantages to opening the multi-channel distribution function: First, sellers can integrate the supply warehouses of various channels into Amazon's warehousing distribution network, achieving single inventory pool management for all-channel supply; Second, as the business scales up and new channels expand, the Amazon multi-channel distribution function can help sellers reduce the overall required inventory for each channel; Third, after the inventory is transported to Amazon's AWD warehouse, Amazon will replenish the inventory to the Amazon operation center within 7-14 days. Sellers can check the end-to-end inventory status at any time without having to communicate with multiple logistics service providers.

It is reported that Amazon's Warehouse Distribution (AWD) was officially launched in October 2022 as a comprehensive low-cost batch warehousing solution that provides upstream bulk inventory reserves and seamless replenishment for sellers’ sales and distribution (ensuring that sellers always have FBA inventory). Specifically, sellers can send inventory via third-party cross-border logistics or Amazon's cross-border logistics services to be stored in AWD warehouses (located near FBA warehouses), then perform timely automatic replenishment based on the inventory status of FBA warehouses.

Prior to the launch of the multi-channel distribution function, Amazon's Warehouse Distribution Network also had a Multi-Channel Fulfillment (MCF) feature, which allows products stored in FBA warehouses to be used to fulfill orders from sellers on other sales channels. Both multi-channel fulfillment and multi-channel distribution help sellers distribute inventory to sales channels outside of Amazon. The former delivers goods from FBA warehouses to customers (B2C), while the latter delivers goods from AWD warehouses to other sales channel warehouses (B2B).