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Sun June 19 2011 23:42:57

Amazon FBA Booksellers Now Restricted to One PA Warehouse

By: Ina Steiner

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Booksellers who use Amazon FBA fulfillment learned last week that they must ship all FBA book inventory to a single warehouse in Pennsylvania (link to discussion).

This is bad news for West coast and Midwest sellers, since they'll pay more in shipping costs and it will take longer for their inventory to arrive at Amazon's distribution center. The news comes not long after FBA sellers received news of a new weight-based long-term storage fee for items stored over 365 days.

A seller said about 6-9 months ago, Amazon had begun requiring Amazon Advantage sellers to ship to the PA warehouse too. (Amazon Advantage is a self-service consignment program for publishers, music labels, studios, authors, and other content owners to promote and sell their media products directly on Amazon.com.)

For now, the new requirement affects new shipments, but booksellers are concerned they could be forced to send inventory already stored in other Amazon warehouses to Pennsylvania.

Could we see more warehouse specialization? While it seems warehouses dedicated to fulfilling certain types of products could be about operating efficiencies, an area in which Amazon.com excels, it would cost Amazon more for shipping multi-item orders. For example, if a customer orders a book, a toy, and a consumer electronic gadget, and they're located in different warehouses, that would be three different packages Amazon would have to mail instead of one.

Amazon FBA is an extremely attractive program for some sellers, since it boosts their items' exposure and lets them concentrate on running their businesses without having to deal with packing, shipping and customer service. The program is not without its problems, however.

Here's information about Amazon FBA, and here is the letter sellers report receiving:

Dear FBA seller,
Effective June 28, 2011, we will begin directing most new shipments of media Units to a fulfillment center in Breiningsville, PA. This fulfillment center focuses on media storage and fulfillment services and is positioned to provide a better buying experience by bringing the inventory closer to buying customers. At this time, we're only planning to direct your new shipments of media Units to this fulfillment center.




Comments (7) | Permalink

Readers Comments

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

by: silly old me

Mon Jun 20 14:06:50 2011

Amazons sandbox play or go home.

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

This user has validated their user name. by: Ming the Merciless

Mon Jun 20 17:06:08 2011

Sellers had better get used to the fact that when corporations initiate "efficiencies," these "efficiencies" typically occur at the expense of their customers.

Really, the only solution to corporate abuse and tyranny is a carefully governed seller owned coop site that really is a level playing field.

Annoy enough customers, Amazon, and you'll see your bottom line impacted negatively just as ebay's marketplace has been.

I see that in order to preserve ebay's "sandbox" analogy -- which is a false one at that -- the LieWorld Troll now defends Amazon for free.

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

by: Phil DeBasquet

Tue Jun 21 00:42:31 2011

I am constantly amused at the people that think that Google and Amazon are the answer to ebay's tyranny. The constant changes at google couched in undecipherable techno gook and Amazon's endless rules and stupid policies make it obvious they are just another problem. Answers are in very short supply in ecommerce land. greed and dealer abuse are what is happening.
God bless the child what got his own.

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

by: citizen

Tue Jun 21 13:25:42 2011

It's most likely for tax purposes being it's a hot topic.  States are looking for income and chasing after Amazon for tax on sales.

There's also a possible exposure to sellers here too.  Your item is in Amazon's warehouse and you own it.  When a customer buys your item, Amazon purchases it from you, then sells to the customer.  The sale from you to Amazon takes place in the state where the item physically is.  Are you liable for tax on the sale of your item to Amazon in that state?

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

by: mindelec This user has validated their user name.

Tue Jun 21 18:12:32 2011

probably due to people buying enough low price ($1-3) books to get free shipping, if all those books have to ship separately the shipping charges would really add up.

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

by: Ebay No More This user has validated their user name.

Wed Oct 5 00:42:52 2011

Amazon switched our FBA warehouse from Phoenix to Hebron KY and it tripled our shipping costs. Amazon's response was extremely poor when we questioned it. We are now working hard to leave Amazon permanently. It can't come too soon.

Amazon FBA Booksellers Now Restricted to One PA Warehouse   Amazon FBA Booksellers Now Restricted to One PA Warehouse

by: Cyn
Web Site

Wed Oct 5 09:43:43 2011

We don't sell media and have been required to split shipments between Kansas and Indiana. Suddenly Amazon added Kentucky to the mix. We are in Texas, so shipments to Indiana take a full week. Not sure how long it's going to take to Kentucky since this change just occurred this week. We have handbags, same style and SKU, different colors, splitting into two shipments. 4 colors go to one warehouse and the other color goes to a different one. I don't understand how Amazon sees this as efficient? I'm not a rocket scientist, but IMHO, it would be better for Amazon, the customer, and the seller if we sent all of our inventory to one specific warehouse. Amazon could make projections on how much space they need based on each sellers previous sales. Does this make sense to anyone else but me?



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