Amazon warehouse is not enough to allow third party goods marked Prime


technology news Beijing time on November 18th morning news, Amazon is trying to get more storage space through the platform of third party seller. Through such a storage strategy, Amazon can be completed faster delivery, while maintaining a low cost.


Amazon announced on Thursday, according to the Seller Fulfilled Prime project, can be delivered within two working days of goods has reached 6 million. Amazon launched the project earlier this year. The project allows third party merchants in the Amazon platform to sell goods in the name of "Prime Eligible", even if the packaging and courier work is not done by amazon.

this again shows that Amazon’s logistics infrastructure can not keep up with the growth rate of user demand. The third quarter, the problem of storage capacity, as well as the cost of new facilities led to Amazon’s orders delivery costs rose by 34%. This part of the cost is also the main reason for Amazon’s profit in the quarter than analysts expected. Since October 27th earnings release, Amazon shares fell 8.8%.

Bloomberg analysts on average expected to show that Amazon’s revenue this year will grow 28% to $137 billion. Rapid growth in the performance of the Amazon warehouse construction. Amazon has more than 15 logistics centers in California, Texas, Illinois, Kansas, New Jersey, Georgia and Florida, employing more than 12 thousand employees.

In addition to increasing its own logistics capabilities

, Amazon also launched the Seller Fulfilled Prime project, the use of business partners storage space. Amazon is not only the sale of independent stock products, but also sales of third party products. The latter will pay a fee to Amazon, Amazon will be responsible for packaging and delivery, and the goods will be labeled Prime. Seller Fulfilled Prime allows businesses to choose their own packaging and delivery, but also marked with Prime.

Geoff · (Jeff McDonald) is the owner of a pet food store in Raw, Indiana, Paws. He joined the project in August of this year, when he had been on the Amazon platform for 1 years. He said that his company through Amazon’s test, delivering 300 orders, while ensuring a very low return rate, defect rate and delivery delay rate.

said: this approval process is very difficult." But now, he can put all of his pet products labeled Prime label.

earlier this year, due to the problem of logistics capabilities, Amazon began to limit the use of its warehouse merchants. In addition, Amazon has adjusted the cost structure for

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