Imagine your carefully prepared shipments, destined for a specific Amazon warehouse, being mistakenly sent to a facility thousands of miles away due to a freight forwarder's error. This not only delays sales and increases costs but could also put your Amazon seller account at risk. Amazon is now taking action against such violations in the freight forwarding industry, particularly targeting the practice known as "remote warehouse delivery."
The Hidden Risk in Cross-Border E-commerce Logistics
"Remote warehouse delivery" occurs when freight forwarders, contracted to handle initial transportation for Amazon sellers, deliberately send shipments to warehouses different from those specified in the shipping agreement, pocketing the price difference. For example, a seller might pay for shipment to an East Coast warehouse while the forwarder sends goods to a West Coast facility instead.
This fraudulent practice not only harms sellers financially but creates significant operational risks. Some forwarders exploit vulnerabilities in Amazon's Fulfillment by Amazon (FBA) system through these methods:
- Using Amazon AGL trucks: These trucks sometimes allow warehouse entry without requiring Inbound Shipping Appointment (ISA) or PRO tracking numbers.
- Falsifying delivery information: Forwarders may forge warehouse appointment details to redirect shipments.
Potential Consequences for Sellers
The practice can create multiple problems for Amazon merchants:
- Delayed warehouse processing and sales disruptions
- Increased operational costs from additional transfer fees and storage charges
- Higher risk of lost or damaged goods during unnecessary transfers
- Account penalties including shipping restrictions, suspended selling privileges, or bans
- Inability to file claims with Amazon or insurers due to the forwarder's misconduct
Amazon's New Carrier Accuracy Requirements
Amazon's U.S. marketplace has implemented new rules requiring carriers to maintain at least 70% accuracy in delivery appointments. The accuracy formula considers:
- Scheduled and successfully received shipments
- Unscheduled but accepted deliveries
- Scheduled but missing shipments
Carriers falling below this threshold four times within eight weeks will have their Amazon Shipping Partner accounts suspended, significantly impacting their ability to serve sellers.
Protecting Your Business from Fraudulent Forwarders
Sellers should implement these protective measures:
- Partner with established, reputable forwarders after thorough vetting
- Scrutinize shipping quotes beyond just price, checking for hidden fees
- Monitor shipment tracking to verify routing
- Verify warehouse receipts against original shipping documents
- Purchase shipping insurance to mitigate loss risks
- Prioritize reliability and security over low-cost options
Key Considerations When Selecting Forwarders
When evaluating freight forwarders, sellers should assess:
- Company scale: Larger operations typically offer more robust systems and experience
- Service quality: Comprehensive solutions including customs clearance, warehousing, and insured deliveries
- Pricing structure: Transparent, all-inclusive rates rather than artificially low base prices
- Security measures: Protocols to prevent loss or damage during transit
- Delivery reliability: Consistent on-time performance to Amazon facilities
Amazon's regulatory actions aim to create a fairer logistics environment. For sellers, combining careful partner selection with strong operational oversight remains essential for marketplace success.