The Seamless Network of Amazon Global Logistics

Amazon Global Logistics (AGL) emerges as a compelling solution for businesses seeking to expand their global reach. 

It offers Amazon sellers a comprehensive suite of services to manage their end-to-end Amazon logistics and supply chain, from storage and inventory to international shipping and fulfillment. 

Amazon Global Logistics

What is Amazon Global Logistics (AGL)?

Amazon global logistics (AGL) is a service offered by Amazon specifically designed to simplify the complexities of international shipping for its sellers. 

It goes beyond traditional freight forwarding by providing a comprehensive supply chain solution encompassing various aspects: 

  • Pickup and Consolidation: AGL facilitates the pickup of your inventory from your manufacturing facilities, often located overseas (frequently in China). Amazon global logistics China streamlines the consolidation of your products before international transportation. 
  • Customs Clearance: Navigating customs regulations can be an overwhelming task. AGL handles the customs clearance process at both origin (typically the manufacturing market), ensuring your products comply with all the necessary regulations).
  • International Shipping: Amazon global shipping leverages its network and expertise to manage the international transportation of your inventory, ensuring efficient and cost-effective delivery to Amazon fulfillment centers worldwide. 
  • Delivery to Amazon Fulfillment Centers: Upon arrival, Amazon AGL ensures your inventory is delivered directly to the designated Amazon fulfillment centers, Amazon warehousing and distribution, ready to order fulfillment and customer delivery through Amazon’s established network. 

What is Supply Chain by Amazon?

Amazon’s supply chain is a broader program encompassing various services designed to streamline the fulfillment process for Amazon sellers. 

AGL Amazon global logistics is one of the core components within supply chain Amazon, specifically focusing on the complexities of international inventory management and cross-border logistics. 

Services offered under Supply Chain by Amazon include: 

  • Amazon Fulfillment by Merchant (FBM): Amazon FBM allows sellers to manage their own inventory storage and fulfillment, potentially utilizing third-party logistics providers. 
  • Fulfillment by Amazon (FBA): Sellers leverage Amazon’s vast network of fulfillment centers for storage, packing, and shipping of their products. 

The comparison between Amazon FBA vs FBM is: 

Fulfillment by Merchant (FBM)

Fulfillment by Amazon (FBA)
Inventory StorageSeller manages their own storageInventory stored in Amazon fulfillment centers
Picking & PackingSeller fulfills picking and packing ordersFMB Amazon handles picking, packing, and shipping
ShippingSeller chooses and pays for shipping carriersAmazon manages shipping and fulfillment logistics
Fulfillment CostsPotentially lower upfront costs, but requires additional investment in storage, labor, and shippingHigher storage and fulfillment fees, but eliminates need for managing these logistics
Control Over FulfillmentSeller has more control over packaging and fulfillment processLess control over fulfillment process, but benefits from Amazon’s expertise and infrastructure
Amazon FBA vs Amazon FBM

Why Use Amazon Global Logistics?

Logistics Amazon offers a multitude of benefits for businesses seeking to expand their reach into international markets.  

AGL streamlines the complexities of international shipping by managing customs clearance, documentation, and transportation, allowing sellers to focus on core business activities. 

By leveraging AGL’s network and expertise, sellers can potentially achieve cost savings compared to managing international logistics independently. 

AGL facilitates a seamless flow of inventory from manufacturing facilities to Amazon fulfillment centers, enhancing overall supply chain efficiency. 

Faster and more reliable delivery times achieved through AGL can lead to a more positive customer experience for international buyers. 

How to Get Started with Amazon Global Logistics?

Currently, AGL operates with a selective onboarding process. Here are the general steps to consider: 

  1. Existing Seller Account: Businesses with an established Amazon seller account might have a smoother onboarding experience with AGL. 
  2. Direct Application: Sellers can express interest in AGL through the Amazon Seller Central portal. Specific criteria for direct applications are not publicly disclosed.
  3. Contact Seller Support: Reaching out to Amazon Seller Support can provide the most up-to-date information on eligibility requirements and the application process.  

How to Set up Your Amazon Global Logistics Account

Once approved for AGL, you will likely be guided through a setup process within your Seller Central account. This might involve providing details regarding your inventory, manufacturing locations, and target markets. 

Benefits of Amazon Global Logistics

As highlighted previously, AGL offers a multitude of benefits for businesses and individuals:

Simplified Logisitcs: AGL streamlines the complexities of international shipping, allowing sellers to focus on product sourcing and marketing efforts. 

Cost Savings: Potential cost reductions compared to independently managing international logistics. 

Increased Efficiency: A streamlined supply chain with faster delivery times to international logistics. 

Enhanced Customer Experience: Improved customer satisfaction through faster and more reliable fulfillment. 

Who should use Amazon Global Logistics?

  1. Amazon Sellers: Individuals, businesses, and brands selling on Amazon’s marketplace.
  2. Fulfillment by Amazon (FBA) Sellers: Amazon FBA sellers, who store their products in Amazon’s fulfillment centers, can leverage Amazon Global Shipping services. Amazon manages packing, shipping, and customer service for FBA orders, including those destined for international customers.
  1. Amazon Marketplace Sellers in Eligible Countries: While available to sellers in numerous countries, eligibility may vary based on location. Amazon continually expands its services, so sellers should check availability in their country through their Seller Central account.
  1. Individuals and Businesses New to Exporting: Amazon Global Shipping services are particularly beneficial for those new to international trade. Amazon’s established logistics network simplifies global shipping complexities, customs clearance, and compliance, making it accessible to a broader range of sellers.
  1. Sellers Looking to Expand Globally: For those aiming to grow their business internationally, Amazon Global Shipping services provide infrastructure and support to expand reach across borders.
  1. Private Label Brands: Private label brands offering unique or specialized products can utilize Amazon Global logistics services.
  1. Sellers of Diverse Product Categories: Whether selling clothing, consumer electronics, home goods, or any other category, Amazon Global logistics services cover a wide range of products, allowing sellers to cater to diverse international markets.

Consider these if it is an ideal choice for you to use Amazon Global Logistics:

  • Ship substantial quantities of inventory to Amazon fulfillment centers.
  • Seek to reduce shipping costs and benefit from negotiated rates with ocean carriers.
  • Aim to streamline the management of their supply chain through a convenient platform.
  • Prioritize real-time tracking capabilities for their shipments.
  • Prefer to partner with a dependable and experienced provider of ocean freight transportation.

Infrastructure and Technology of Amazon Global Logistics

Amazon Global Logistics (AGL) operates as a sophisticated and intricate network of infrastructure and technology, facilitating the seamless movement of goods from sellers and manufacturers to Amazon fulfillment centers and customers worldwide. This comprehensive network integrates diverse physical assets, software systems, and data analytics tools, collaborating harmoniously to optimize the efficient flow of both products and information.

Physical Infrastructure

Amazon Global Logistics (AGL) boasts a robust physical infrastructure, comprising:

  • Transportation Networks: Amazon Global Logistics optimizes the movement of goods globally by utilizing a diverse range of transportation modes, such as air, ocean, and ground freight. The effectiveness and reliability of these transportation services are guaranteed through established partnerships with major carriers and logistics providers.
  • Fulfillment Centers: Amazon Global Logistics manages an extensive network of fulfillment centers strategically positioned worldwide. These centers are equipped with cutting-edge automation and robotics technology, enabling streamlined processes for sorting, packing, and shipping products.
  • Warehousing Facilities: Amazon Global Logistics actively manages a network of warehousing facilities, strategically tailored for pre-fulfillment inventory storage. These facilities are thoughtfully organized to enhance storage efficiency and provide optimal conditions for a diverse range of products.

Software Systems

The software systems that power Amazon Global Logistics (AGL) include:

  • Transportation Management Systems (TMS): Amazon Global Logistics relies on TMS software to strategically plan, optimize, and execute shipments throughout its extensive transportation network. These systems seamlessly integrate with carrier platforms, offering real-time tracking and visibility to sellers and customers.
  • Warehouse Management Systems (WMS): Amazon Global Logistics’s WMS software orchestrates the movement of inventory within its fulfillment centers and warehousing facilities. It streamlines storage, monitors inventory levels, and generates insightful reports to facilitate effective inventory management.
  • Order Management Systems (OMS): Amazon Global Logistics OMS software oversees the entire order processing workflow, ensuring precision in picking, packing, and shipping. Integrated with other systems, it guarantees accurate and efficient order fulfillment.

Data Analytics Tools

Amazon Global Logistics harnesses data analytics tools to glean insights into its operations and guide informed decision-making. These tools scrutinize data from diverse sources, encompassing shipments, inventory levels, and customer behavior, to discern trends, refine processes, and enhance overall efficiency.

Key Technologies Deployed in Amazon Global Logistics (AGL)

  • Machine Learning (ML): ML algorithms predict demand patterns, optimize shipping routes, and offer personalized recommendations to sellers.
  • Artificial Intelligence (AI): AI automates tasks like inventory management, shipment routing, and customer service interactions.
  • Internet of Things (IoT): IoT sensors track shipments, monitor inventory levels, and collect data on warehouse operations.
  • Robotic Process Automation (RPA): RPA bots automate repetitive tasks, such as data entry and order processing, liberating human workers to concentrate on more intricate responsibilities.

Impact of Amazon Global Logistics on E-commerce Businesses

Amazon Global Logistics (AGL’s) success is tied to its expansive infrastructure and cutting-edge technology. These assets empower AGL to:

  • Enabling Swift Product Movement: Amazon Global Logistics achieves the rapid and efficient transportation of products from suppliers to end customers through its robust transportation network, complemented by cutting-edge fulfillment centers and warehousing facilities.
  • Optimize inventory management: Amazon Global Logistics leverages advanced data analytics tools and software systems, aiding both sellers and Amazon in effectively managing inventory levels. This minimizes the risk of stockouts and overstocks, promoting efficient supply chain management.
  • Offer visibility and control: Amazon Global Logistics robust tracking systems and sophisticated order management software provide sellers and customers with real-time visibility into the status of their shipments and orders, fostering a sense of control.
  • Enhanced Customer Experience

Future Trends of Amazon Global Logistics (AGL)

At the forefront of transformation, Amazon Global Logistics continuously evolves to meet the growing demands of e-commerce and international shipping. Some of these trends include:

  1. Continued Expansion of Fulfillment Network
  2. Increased Automation and Robotics
  3. Integration with Artificial Intelligence (AI)
  4. Sustainable Logistics Practices:
  5. Enhanced Cross-Border Logistics:
  6. Personalized Delivery Solutions:
  7. Collaboration with Local Partners:
  8. Data-Driven Decision Making:
  9. Embracing Emerging Technologies:
  10. Adapting to Changing Consumer Demands