As the annual Black Friday shopping event approaches, cross-border e-commerce sellers are preparing for peak sales. However, this year's event appears far from normal, with Amazon workers planning global strikes and U.S. West Coast FBA warehouses experiencing severe congestion.
From Shopping Frenzy to "Seller Suffering Day"? Global Strike Looms
Black Friday traditionally represents a shopping celebration for both consumers and merchants, but this year may bring a different story. The "Make Amazon Pay" coalition, consisting of unions, environmentalists, and labor organizations, is coordinating strike actions across 30 countries including India, Italy, Germany, France, the Netherlands, and the United States on November 25.
The coalition aims to transform "Black Friday" into "Amazon Pay Day," protesting the company's labor policies and environmental practices. For e-commerce sellers, these potential disruptions threaten logistics efficiency, potentially causing delayed shipments, undelivered orders, and damage to sales performance and seller reputations.
U.S. West Coast FBA Warehouses Overwhelmed
Beyond strike concerns, sellers face another critical challenge: severe congestion at major U.S. West Coast FBA warehouses. Since late October, reports indicate extended waiting times at key facilities, with some like ONT8 experiencing delays exceeding one month for inventory processing.
Affected warehouses include SMF3, SBD1, LAS1, GYR3, LGB8, ONT8, and LAX9, all requiring several weeks for inventory processing. These conditions force sellers to ship products earlier than usual to ensure Black Friday availability.
Strategies for Sellers Facing Dual Challenges
To navigate these simultaneous challenges, e-commerce sellers should consider multiple approaches to mitigate risks and protect sales:
1. Advance Inventory Preparation
Analyzing historical sales data and market trends allows sellers to forecast demand and ship inventory before peak congestion periods. Early warehouse arrival helps avoid sales disruptions from delayed processing.
2. Leverage Amazon's Official Services
Amazon offers tools to help sellers manage storage constraints and improve logistics:
- Amazon Warehousing & Distribution (AWD): This service automatically replenishes FBA inventory from AWD warehouses, maintaining product availability while bypassing replenishment restrictions.
- Storage Limit Manager: Sellers with IPI scores below 400 can request additional FBA storage space, potentially earning performance credits and waiving storage fees.
3. Diversify Sales Channels
Reducing dependence on Amazon through alternative platforms like independent websites or eBay helps distribute risk across multiple sales avenues.
4. Maintain Close Communication With Freight Forwarders
Regular updates from logistics partners enable better shipment planning and route adjustments to circumvent potential delays.
5. Monitor Strike Developments
Tracking the "Make Amazon Pay" coalition's activities allows sellers to assess strike probabilities and adjust strategies accordingly, including potential inventory redistribution to alternative warehouses.
Understanding Amazon's Capacity Restrictions
Effective inventory management requires knowledge of Amazon's two primary capacity limitations:
- Replenishment Limits: These determine maximum shipment quantities to fulfillment centers, calculated from historical and projected sales, independent of IPI scores.
- Storage Limits: These cap total inventory in Amazon fulfillment centers, waived for sellers maintaining IPI scores above 400.
Sellers can review both metrics under the "Inventory Performance" section in Seller Central.
With unprecedented challenges facing this year's Black Friday, proactive preparation and adaptive strategies will prove essential for sellers aiming to succeed during this critical sales period.