Fulfillment by Amazon
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How a cookware company is using Amazon’s supply chain services
Yahoo Finance· 2025-10-14 13:50
Core Insights - Avacraft, a premium cookware company, is utilizing Amazon's supply chain services to enhance inventory management and logistics operations [1][2] Group 1: Transition to Amazon Services - The transition to Amazon's services was gradual, starting with Fulfillment by Amazon (FBA) and expanding to include Amazon Warehousing and Distribution (AWD) and Amazon Global Logistics (AGL) as the company scaled [2] - CEO Asha Kangralkar reported a significant reduction in time spent on supply chain tasks, from five to six hours daily to five to six hours weekly due to the use of AWD and AGL [3] Group 2: Benefits of Amazon Warehousing and Distribution - Prior to using AWD, Avacraft managed inventory independently and coordinated shipments across multiple warehouses, which was complex and time-consuming [4] - With AWD, inventory management has become easier, featuring automatic replenishment that reduces the need for manual oversight [4] - The previous reliance on a third-party freight forwarder involved multiple steps and delays, complicating the logistics process [5][6] Group 3: Logistics Challenges - The process of moving goods from the third-party logistics (3PL) warehouse to FBA required creating shipments in Amazon's Seller Central platform, which added to the complexity of logistics operations [7]
Amazon Shipping preps higher peak season surcharges
Yahoo Finance· 2025-09-30 10:38
Core Insights - Amazon Shipping will implement peak season surcharges from October 26, 2025, to January 17, 2026, with the highest fees occurring from November 23 to December 27, 2025 [4][8] - The surcharges include a per-package demand surcharge and additional fees for large, heavy, or special handling parcels, with increases compared to 2024 fees [8] - Amazon's logistics arm experienced a 7.3% year-over-year volume increase in 2024, surpassing competitors like the U.S. Postal Service, UPS, and FedEx [6] Fee Structure - The fee structure for the 2025 holiday season includes: - $0.40 per package surcharge from October 26 to November 22 - $0.60 per package surcharge from November 23 to December 27 - $0.40 per package surcharge from December 28 to January 17, 2026 - Additional handling fees ranging from $8.25 to $10.80 depending on the period - Large package fees ranging from $90 to $107 depending on the period - Extra heavy package fees ranging from $485 to $540 depending on the period [3][4][8] Market Dynamics - Amazon Shipping is attracting more shippers, including companies like BarkBox and KiwiCo, who report faster delivery times and more economical rates after switching from other carriers [5] - There is a growing trend among shippers to seek alternative carriers due to rising parcel shipping rates, with other carriers collectively increasing their volumes by 22.6% [6]