A quiet crackdown is underway on Amazon's platform targeting fraudulent practices in cross-border logistics. As the year-end approaches, e-commerce sellers are busy preparing their 2023 inventory plans, with falling sea freight prices offering more attractive options. However, behind the booming cross-border logistics industry, long-standing violations like "remote warehouse delivery" are coming to light and drawing Amazon's attention.
The Gray Area of "Remote Warehouse Delivery"
What exactly is "remote warehouse delivery"? Simply put, it's a cost-cutting scheme where unscrupulous freight forwarders divert shipments destined for East or Central U.S. warehouses to popular West Coast facilities. Since AGL trucking fees are significantly lower for West Coast warehouses, these middlemen pocket the difference. This practice not only disrupts Amazon's operations but directly threatens sellers' interests.
The Hidden Risks for Sellers
The consequences for sellers can be severe. First, product listing times may be indefinitely delayed, disrupting sales and cash flow. Second, the risk of lost shipments increases during unauthorized transfers. Most critically, if discovered by Amazon, sellers may face back-charged fees, shipping restrictions, performance warnings, or even account suspensions.
Amazon's Countermeasures
Amazon has implemented several detection and prevention measures:
- Enhanced shipment tracking: Sellers can now verify actual delivery locations versus registered addresses in their FBA dashboard. A mismatch (e.g., FTW5 registration vs. XLX2 delivery) signals potential fraud.
- Tighter carrier requirements: Carriers must now maintain >70% appointment manifest accuracy to qualify for warehouse access.
- Strict penalties: Carriers with four violations within eight weeks face permanent account suspension.
(Note: Manifest accuracy compares PO quantities between carrier submissions and Amazon's receipts, including properly scheduled shipments, unscheduled acceptances, and missing scheduled items.)
Selecting Reliable Logistics Partners
Given these risks, sellers should carefully vet logistics providers:
- Verify credentials: Research company history, physical addresses, legal status, and industry reputation through peer networks and site visits.
- Provide complete documentation: Detailed customs forms with product names, specifications, and images minimize additional fees.
- Establish clear contracts: Define liability terms for lost/damaged goods before shipping.
- Optimize inventory management: Small sellers especially should analyze warehouse stock, sales velocity, and in-transit quantities to avoid over-ordering.
The Need for Industry Standards
As cross-border logistics remains vital to e-commerce, addressing these issues requires collective action. Platforms must strengthen oversight while logistics firms improve self-regulation. Only through coordinated efforts can the industry eliminate fraudulent practices and build sustainable growth foundations.