As peak season approaches, Amazon sellers face growing anxiety about inventory management. The e-commerce giant is undergoing a significant strategic shift, closing dozens of fulfillment centers across the United States—a move that could dramatically impact third-party sellers' operations.
Unprecedented Warehouse Closures
Amazon is currently executing one of its largest warehouse restructuring plans, shutting down 42 facilities totaling over 25 million square feet of fulfillment space. The company recently notified Maryland officials about closing two FBA delivery stations, leaving hundreds of employees without jobs. This appears to be just the beginning of a broader consolidation effort.
The shutdown strategy varies by facility type. For smaller FBA delivery stations, Amazon is implementing immediate closures. Larger fulfillment centers face a more gradual phase-out—first stopping new inventory intake, then terminating leases upon expiration before final employee layoffs.
Workforce Reduction Raises Concerns
Traditionally, Amazon ramps up seasonal hiring during autumn and spring to prepare for major shopping events like Prime Day and Black Friday. However, this year tells a different story. The company reduced its workforce by approximately 100,000 employees in Q2—the largest quarterly decline in its history.
While Amazon maintains that current FBA capacity exceeds demand and claims these closures won't affect peak season operations, sellers report conflicting signals. Many are experiencing inventory replenishment restrictions , suggesting potential logistical challenges ahead.
Strategic Implications for Sellers
Merchants must remain vigilant about policy changes and proactively adjust their inventory strategies. Diversifying storage and fulfillment options may prove crucial to maintaining sales momentum during the critical holiday season.
The warehouse consolidation reflects Amazon's cautious approach to future storage needs amid economic uncertainties. Sellers who adapt quickly to these changes will be best positioned to capitalize on upcoming sales opportunities.