The Amazon Logistics network is made up of independent third party logistics providers. These providers utilize an assortment of vehicles, including vans, motorcycles, bicycles, and in some cases, delivery by foot. There are requirements in place to manage these providers upon sign up (setting insurance, licensing,…), and Amazon’s software manages the whole process from pickup to delivery. The service operates from 8 am to 8 pm every day of the week.
Orders are managed and tracked via Amazon’s central platform that supports typical carriers (such as FedEx and USPS), Amazon’s own Transportation Services, and the third-party Amazon Logistics providers. One unique feature that has been added solely for packages shipped via Amazon’s own delivery services is a real time map based tracker which allows you to view the carriers progress to delivery directly.
Third party Amazon Logistics carriers utilize Amazon’s Flex software to manage their deliveries. This software is similar to Uber or Doordash and a major leader for enabling the gig economy. There are four delivery options to which carriers respond, with Amazon Logistics and Prime Now being the two most relevant to Marketplace sellers. The other two options include Amazon Fresh for grocery delivery and Amazon Restaurants for food takeout delivery. Delivery and tracking options vary among these options, so let is dive in to the best practices to get you started.
– Help Your Customers Make the Most of This Service
– Take an Active Role in Managing Shipping Issues and Feedback
– Stay up to Date on the Latest Logistics Offerings to All Regions You Ship
Advantage of Amazon Logistics for Third Party Sellers
Still, there are advantages to Amazon Logistics. It allows you to take advantage of Amazon’s cutting edge programs like Lockers, Fresh, Flex and Prime Air, and it gives you the chance to offer expedited, same day and even two-hour shipping in certain geographic areas.
Amazon Logistics can also offer an advantage in times of high shipping volume when services like USPS are backed up and bogged down.
Disadvantage of Amazon Logistics for Third-Party Sellers
For one, late or mishandled deliveries can impact a seller’s feedback score. Not only does this score play a role in whether customers decide to buy from that seller or not, but it can also influence the merchant’s ability to win the buy box – a crucial placement when multiple sellers offer the same product.
Sellers also have no control of Amazon Logistics. They can not pick and choose which providers they want to use – even if they have been burned by one before.
The entire logistics chain is operated without seller input, putting both their shipments and their reputation on the line. With the option to self fulfill orders still on the table (giving you full control of every step), this can be pretty frustrating for many sellers.
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