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E161: What I Learned While Working at an Amazon FBA Warehouse

The EcomCrew Ecommerce Podcast · with Dave · July 9, 2018 · 24 min

Summary

Dave shares his unique insights from working inside an Amazon FBA warehouse, offering a rare behind-the-scenes look at their logistics. This episode is crucial for Amazon sellers to understand inventory categorization (standard vs. oversized), shipping strategies to avoid misroutes, and how Amazon manages diverse product volumes. Learn how to optimize your FBA shipments and mitigate common inventory concerns based on direct warehouse experience.

Key takeaways

Themes

amazon & marketplacessupply chain & operations

Topics covered

amazon fba logisticsfba warehouse operationsoversized fba itemsfba inventory managementamazon storage feespeak season surchargesfba inbound shipping strategies

Episode description

Hey, it's Dave filling in for Mike. In today's podcast, I'm going to talk about my stint at Amazon last year. In January 2017, I got hired as a picker at one of their oversize FBA warehouses in Vancouver. I worked for 8 hours and was paid CA$13.75 an hour. I had originally intended to work there for two weeks but had to cut it short to a few days. Still, it was more than enough time to have a good idea of what goes on inside these warehouses and what it's like to work there. Here are 5 important takeaways from my time there. 1. Different sized items are sent to different warehouses. Amazon has warehouses specifically for storing standard items and oversize items. If you're importing products from a Chinese manufacturer, it's best to ship only one-size items at a time. This prevents them from getting sent to different warehouses. 2. Amazon sells a lot of diapers and TVs. There was a staggering amount of TV sets and Pampers boxes at the warehouse I worked in. 3. Amazon has the ability to handle any item you can throw at it. Don't worry about shipping your oversize products through Amazon. They'll find a way to pack and ship to your customer securely. 4. There is no conspiracy to lose your stuff. Amazon doesn't intentionally lose your orders. It's more likely that the warehouse it's shipped from doesn't have a reliable way of organizing all the products going in and out. At our warehouse, the apparent lack of this system caused an item or two getting misplaced ever so often. 5. Peak fees are a resul

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Frequently asked about this episode

What does this episode say about amazon & marketplaces?
Ship only one-size items (standard or oversized) per shipment to Amazon FBA to ensure products are routed to the correct, specialized warehouses and prevent delays.
What does this episode say about supply chain & operations?
Don't hesitate to ship oversized products via FBA; Amazon has robust infrastructure and processes to securely handle and dispatch even bulky items.
What does this episode say about amazon & marketplaces?
Understand that misplaced inventory in FBA warehouses is more likely due to organizational inconsistencies rather than intentional 'loss,' emphasizing the need for accurate product info and proactive communication with Amazon support.
What does this episode say about amazon & marketplaces?
Be aware of 'peak fees' if selling through FBA, as seasonal demand impacts Amazon's operational costs, which can be passed on to sellers.
What does this episode say about amazon & marketplaces?
Amazon's fulfillment centers are highly specialized; recognizing the distinction between standard and oversized item warehouses is key for efficient inventory management and inbound shipping strategies.

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