Amazon (NASDAQ: AMZN) is reportedly testing a new service that allows merchants to stage inventories near fulfillment centers to meet holiday demand
Amazon is piloting the new service, called Storage and Replenishment, in Ontario, California, and plans to expand it elsewhere in the U.S., Bloomberg reported on Dec. 2, citing documents it reviewed.
The e-commerce giant is looking for a way to handle larger holiday volumes. The service aims to alleviate pressure off its primary facilities while minimizing restocking times.
It also comes as Amazon faces growing criticism for its warehousing model. A recent report by Reveal Center for Investigative Reporting and The Atlantic found serious injury rates double the national average at some Amazon facilities.
Did you know?
Highway 401 in Ontario, Canada, is considered the busiest highway in North America, with as many as 500,000 vehicles traveling on it per day. The provincial government is spending the equivalent of almost $500 million to expand an 11-mile stretch of 401 near Toronto.
“The use of post and parcel services to transport drugs is… expanding rapidly, following the rising trend of online shopping in Europe and the movement of larger volumes of goods.”
— 2019 EU Drug Markets Report. Read more about how criminals are increasingly exploiting Europe’s supply chains.
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Amazon’s foray into staging inventories comes as it faces increased competition in fulfillment and warehousing – particularly from Shopify.
Shopify’s nascent Fulfillment Network is leveraging newly acquired technology from 6 River Systems that will make it easier to bring third-party warehouses with unused capacity into their fold.
Hammer down everyone!