Overview

Supply Chain by Amazon is a fully managed logistics service that moves inventory from a seller’s supplier all the way to the Amazon fulfillment centers that serve the end customer. Launched in 2023, the program bundles pickup, bulk storage, demand‑driven replenishment and final‑mile delivery into a single Amazon‑controlled workflow. Sellers who adopt it can offload the complexity of coordinating carriers, third‑party warehouses and shipment plans, potentially speeding delivery and reducing inventory‑out‑of‑stock events.

Key Points

• End‑to‑end coordination — Amazon schedules carrier pickup, consolidates pallets, stores them in bulk facilities and ships them to the nearest fulfillment center, eliminating the need for sellers to manage multiple logistics partners.
• Powered by Amazon Warehousing & Distribution (AWD) — AWD acts as a low‑cost, pay‑as‑you‑go staging area before inventory enters the regular FBA network, allowing sellers to hold large quantities without the high long‑term storage fees of standard FBA.
• Zero enrollment charge — Sellers are not billed for joining the program; costs are incurred only when inventory actually arrives at an AWD location, making the service low‑risk for trial runs.
• Demand‑driven automatic replenishment — Amazon’s algorithms monitor real‑time sales data and move stock from AWD to fulfillment centers automatically, so a seller of 1,200 units of a seasonal toy never sees a stockout while the product sits idle in a distant warehouse.
• Managed transportation included — The service uses Amazon’s own transportation network for the inbound leg, so sellers do not need to contract external freight forwarders for the pickup‑to‑AWD segment.

How Supply Chain by Amazon Works

1. Product & Pickup Setup — The seller uploads product SKUs, dimensions and the address of the supplier or manufacturing site in the Amazon Seller Central portal. Example: A home‑goods brand lists 2,000 units of a ceramic vase and provides the factory address in Mexico.
2. Carrier Scheduling & Consolidation — Amazon’s logistics team books a carrier to collect the goods, groups multiple SKUs onto shared pallets, and transports them to the nearest AWD hub.