From Ports to Prime

When I get a lot of same questions, usually it’s a sign that I should write about it for everybody’s benefit. This post is one of these ‘you are not the only one with these questions’, and hopefully find this a helpful overview of Amazon’ logistical might.

When most people think of Amazon logistics, they think of FBA. At times, not quite correctly, referred to as Prime. But Amazon has built one of the most sophisticated, vertically integrated supply chain networks in the world - one that now rivals (and in some ways surpasses) traditional carriers and freight forwarders.

Parts of the Amazon’s Supply Chain Machine

• Amazon Global Logistics (AGL): Amazon’s cross-border freight solution. Sellers can move goods from Asia or Europe directly into Amazon’s U.S. network. In 2025, AGL was folded under Supply Chain by Amazon, now handling more than 5 billion items annually. Amazon aims to simplify paperwork and reduce clearance delays with new AI-driven custom tools

• Amazon Warehousing & Distribution (AWD): Bulk storage upstream from FBA. AWD acts as a low-cost staging ground, letting sellers drip-feed inventory into FBA as needed. This reduces overage fees and smooths out seasonal spikes. AWD inventory can now also flow into other channels (Shopify, Walmart, even SHEIN), highlighting Amazon’s ambition to be a universal logistics provider. I have come to appreciate AWD for the ability to send pallets to a single location, and auto-replenishment downstream to FBA

• Fulfillment by Amazon (FBA): The core service that got us addicted to fast delivery. Fast-pick, pack, and ship from Amazon’s domestic network. In 2025, Amazon reintroduced ASIN-level restock limits alongside account caps, requiring tighter inventory discipline from sellers. FBA is indispensable for conversion and Prime eligibility, but it is best to be managed alongside overflow options like AWD.

• Multi-Channel Fulfillment (MCF): Leveraging the FBA network to fulfill non-Amazon orders. Brands can route DTC or Walmart orders through MCF for fast delivery, though margin modeling is critical since MCF fees can be higher than alternatives.

• Amazon Shipping / Amazon Freight: Domestic parcel and trucking services, re-launched in 2024–2025 with stronger integration into Seller Central. Amazon is competing directly with UPS and FedEx, not only delivering Amazon orders but increasingly offering B2B logistics for off-Amazon commerce.

2025 Tactical Notes

• If you are omni-channel: explore Amazon MCF for your DTC, Walmart. Amazon will continue adding marketplaces. Single pool inventory simplifies ops, but confirm channel policies and margin by route (Amazon fees vs. external marketplace fees + MCF)

• Add Amazon logistics option to your ‘get a quote’ list. Amazon now has options from ocean freight to last mile. So when you explore solutions for shipping, Amazon is a worthwhile option to get costs estimates from

• Tariffs persistence assumed. Logistics practioners advise to build tariffs into landing costs. But it won’t stop Amazon’s build-out its logistics vertically and horizontally.

• B2B mostly manufacturer: Embrace AWD, with auto replenishment to FBA, so your warehouse can stick to shipping pallets. Augment with MCF if you also have a DTC website.

As with most things on Amazon, the logistics stack is a toolset: its value depends less on the features themselves, and more on how clearly a brand aligns them to its own business model, P&L, and operational strengths and gaps.

Saludos,

Irina