Inbound Delivery Performance Update from Amazon
Unfortunately, the regulations can cause high added costs to your overall shipping costs and Proboxx would like to bring this to your attention in order to help you avoid this.
Urgent Warning: Plan Shipping in Advance to Avoid Extra Costs
Today, more than ever, it is vital to create a shipping plan as close as possible to the end of your production line.
Amazon's latest regulations necessitate this, as Purchase Orders (POs) will be automatically closed after 90 days.
In case a shipment will not be delivered successfully to the Fulfilment Centres in this time frame of 90 days – Your PO will be closed.
The chances to get Amazon reopen the PO is close to zero, if at all.
This can cause dramatic overhead costs if the specific PO was loaded into a direct line route.
Meaning, the container is delivered directly from the port of destination to the FC.
If the PO was closed due to missed time frames, Proboxx is forced to divert the container and move the full container into a 3PL to dismantle the container load, split between clients and re-label the boxes with new box labels based on a new PO.
This will affect transit time not just for the specific client that his PO was closed on, but it will have an impact on all the other clients that shared this consolidated container.
To give you an example, this can create added costs between $2000 – $4000 easily for you.
Attached is Amazon’s new regulations for carriers:
Carrier regulations and your business - What this all means:
1. Regulatory Change: Amazon has introduced stricter performance metrics for carriers delivering inbound shipments.
2. Risk Mitigation: No carrier wants to risk losing their license to operate as an Amazon-approved carrier.
3. Your Impact: Due to these new restrictions, many sellers have faced increased costs as carriers are less willing to deliver directly to Amazon fulfillment centres.
4. Diversions: Many are now forced to reroute their containers into other warehouses before final delivery to Amazon, incurring extra costs and time delays.
Recommendations:
1. Review your Shipping Plans: Align your shipping plans tightly with your production schedules to mitigate risks.
2. Budget Accordingly: Factor in the potential costs of warehouse diversions and delays.
3. Stay Updated: Keep an eye on Amazon’s evolving regulations, as well as updates from us.
We at Proboxx are committed to supporting your business during these changing times. We highly recommend taking immediate action to align with these new regulations.
Reach out to us today to see if we can help you organise your shipping plan to avoid costly mistakes: info@proboxx.io