Amazon suspends FBA delivery in June? !

Does suspending transportation mean stopping all FBA product deliveries? This is too much. FBA was already unable to restock, and now it has to be completely suspended. How can people do business? The sellers in our group are anxiously asking whether this is true or not.

I looked for the source of the information and would like to reassure everyone. Although the news is true, this Shipping service is a completely different matter and has nothing to do with FBA.

What is Amazon Shipping?

We all know that Amazon has been developing its own logistics system and is competing directly with logistics giants such as USPS and FedEx.

In 2018, Amazon's own logistics also launched corresponding delivery services for sellers who ship their own goods. Self-shipping sellers can choose to let the self-operated logistics deliver the products from the sellers to the buyers. This process is the Amazon Shipping service.

Compared with FedEx, DHL and other express delivery companies, Amazon Shipping has lower fees and official endorsement. Although there are not many regions and service providers that have opened this service, there are still some sellers using it. For example, this service has a cooperative carrier in China, so sellers who use this channel to send self-delivered items should be careful.

In general, the suspension of this service is also to focus more of the tight self-operated operating capacity on the delivery of FBA products. FBA sellers do not have to worry about this problem, but self-delivery sellers who use their own logistics must carefully consider changing logistics channels.

However, the timing of the suspension of the Shipping service is a bit strange. The end of April and the beginning of May should be the period when the epidemic in the United States was the most serious. It should also be the time when Amazon's transportation capacity was the most strained. Logically, the Shipping service should be suspended during this period.

However, Amazon has now announced that it will suspend shipping services starting in June. If the peak of the epidemic in April and May has passed, June should be the time when shipping capacity will be greatly restored . Wouldn’t suspending shipping services at this time be giving away market share to the FedEx and USPS for free?

I guess Amazon estimated that there might be a wave of retaliatory consumption in July or August, coupled with the huge number of orders on Prime Day, it is very likely that the platform will have insufficient transportation capacity again. Therefore, the Shipping service was closed in advance to save transportation capacity for the upcoming wave of orders.

Therefore, the suspension of Shipping is not entirely a bad thing. At least Amazon’s forecast for the future market is still relatively optimistic.