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For high-volume Amazon sellers, the supply chain is no longer just about moving boxes from Point A to Point Bโit is a competitive lever. As margins tighten and customer expectations for speed increase, the efficiency of your inbound logistics directly correlates to your profitability.
The question is: Are you using your logistics provider merely to ship goods, or are you using them to optimize inventory placement?
To get the inside track on how to use Amazon Global Logistics (AGL) to reduce fees and bypass cross-docks, we sat down with Alex Berry, the Director of Global Logistics at Amazon. In this deep dive, Alex shares a behind-the-scenes look at how sellers can leverage new programs like Seller Managed Placement to streamline the journey from factory to Amazon Fulfillment Centers.
Key Insights
- Bypass National Cross-Docks: With the new Seller Managed Placement option, you can ship directly to Regional Inbound Cross-Docks (IXDs), skipping the National IXD step. This removes a touchpoint, accelerates speed to inventory, and avoids Amazon Managed Placement fees.
- Leverage Origin Splits: A new capability allows sellers to send goods to Amazon at origin (e.g., China), where AGL deconsolidates and routes them directly to Regional IXDs. This offers Full Container Load (FCL) pricing efficiency for Less than Container Load (LCL) shipments.
- Automate Compliance: New AI-driven tools are pre-populating up to 70% of customs forms based on previous data exchange, cutting administrative time by half and reducing the risk of human error during customs clearance.
- Expand Sourcing: AGL is expanding origin services beyond China, with new facilities launching in Vietnam to support sellers diversifying their manufacturing.
- The “Time to Prime” Vision: Amazon is working toward a future where booking a shipment comes with a specific promise date for when that inventory will be Prime-ready, aligning logistics incentives directly with seller sales velocity.
Watch the full conversation with Amazonโs Alex Berry to hear these strategies firsthand, or continue reading for our complete breakdown below.
The Evolution of the Amazon Global Supply Chain
Amazon Global Logistics (AGL) was born from Amazonโs own retail needs. Before opening the doors to third-party sellers, Amazon built a massive internal network to import its own inventory. Today, AGL externalizes that scale, offering sellers a direct pipeline into the fulfillment network.
According to Berry, AGL is now the second-largest mover of goods on the Trans-Pacific Eastbound lane. However, for sellers, volume matters less than reliability and integration.
โWeโre the only freight forwarder whose only customer is sellers,โ Berry explains. โWe have ambitions over time to become the largest freight forwarder in the world, but we will not try to do that until we are clearly the best freight forwarder for sellers.โ
This focus has led to significant shifts in the Amazon global supply chain, particularly regarding how inventory enters the US network. Historically, goods moved through a “two-touch” network:
- National IXD: A central hub for receiving.
- Regional IXD: A secondary hub for distribution.
- Fulfillment Centers: The final destination for storage and picking.
While effective, multiple touches add time and cost. The latest AGL innovations focus on reducing these steps through supply chain optimization.
Seller Managed Placement: Skipping the National Cross-Dock
One of the most significant updates discussed in the interview is Seller Managed Placement.
Previously, sellers utilized Amazon Managed Placement (AMP), where AGL received containers at a National IXD, deconsolidated them, and distributed them to regional nodes. While convenient, this service incurred specific AMP fees and added a processing step.
Seller Managed Placement allows sellers to bypass that first touchpoint entirely.
โIt lets sellers use AGL to ship direct to those regional IXDs,โ Berry says. โThe benefit of that is really twofold. One is they get to skip the touch point of the national IXD… and save money on not having to pay the fee associated with AMP.โ
Why this matters for your bottom line
- Speed: By removing the National IXD unload and deconsolidation process, inventory becomes available for sale faster.
- Cost: There is no fee associated with Seller Managed Placement, unlike the managed service.
This is particularly powerful for sellers shipping Full Container Loads (FCL), but Berry notes it is also available for LCL shipments, allowing for faster injection into the network via FBA inbound shipping.
Origin Split: FCL Pricing for LCL Shipments
For sellers who donโt always ship full containers but want the efficiency of direct placement, Amazon is rolling out Origin Split.
This feature moves the sorting process upstream. Instead of sending mixed inventory to the US to be sorted at third-party warehouses or Amazon facilities, sellers send goods to Amazon at the origin country (starting with China). AGL then deconsolidates the shipment at the origin port and reconsolidates it with other seller shipments heading to specific Regional IXDs.
โEffectively what that’ll do is it’s gonna give sellers the opportunity to get FCL-like pricing for LCL shipments while at the same time skipping that national IXD step,โ explains Berry.
By utilizing this strategy, sellers can reduce their landed costs while still benefiting from the speed of direct-to-regional Amazon global shipping.
Real-World Impact: Reducing Administrative Overhead
The value of an integrated logistics partner isn’t just in the freight cost; it’s in the reduction of management hours.
Berry shared the story of Asha, founder of Ava Craft, who was spending five to six hours a day managing freight forwarders, customs paperwork, and coordination between factories in China and India. By switching to a combination of AGL and Amazon Warehousing & Distribution (AWD), she reduced that time to less than five hours per week.
The AI Advantage in Customs
A major contributor to these time savings is the integration of AI in customs documentation. Because AGL is linked to your FBA account, it already possesses your ASIN data and product classifications.
โOn average, sellers were seeing 70% of the forms in terms of customs pre-populated,โ Berry notes.
This reduces repetitive data entry and, crucially, minimizes the โmindlessโ errors that often lead to customs hold-ups, ensuring you are acting as a compliant Importer of Record.
Pro-Tips for Smoother Logistics
Even with an integrated partner, the seller plays a role in preventing delays. Berry offered three specific recommendations for sellers looking to optimize their Amazon global selling operations:
- Sync Cargo Ready Dates: Ensure your manufacturer is accurate regarding when goods will be ready. A “missed picture” (missed pickup) leads to missed vessel appointments and cascading delays.
- Prioritize Compliance: Use reputable customs brokers. In the current macroeconomic environment, regulatory enforcement is increasing. Cutting corners on data or using budget brokers can lead to increased inspections. (AGL offers Amazon Customs and Trade, but sellers can also bring their own trusted brokers).
- Consider Fast Ocean: For holiday peaks or inventory replenishment of fast-moving items, consider “Fast Ocean” services. These containers get priority placement on the vessel and are the first to be offloaded and processed, drastically reducing port-to-FC times.
The Future: “Time to Prime”
Looking ahead to 2026, Berry outlines a vision that moves away from technical logistics terms like “port-to-port transit time” and focuses on what sellers actually care about: availability.
The goal is to offer a “Time to Prime” promise.
โIf you book with AGL… I will promise you it’s going to be in prime inventory by X date,โ Berry envisions.
This shift would allow sellers to make more accurate inventory management decisions regarding stock-outs and overstocks, aligning Amazonโs logistics goals directly with the sellerโs sales velocity. Furthermore, AGL is expanding its footprint to support global sourcing trends, adding origin locations in Vietnam to help trading partners diversify their supply chains.
Conclusion
The logistics landscape is shifting from fragmented service providers to integrated supply chain ecosystems. By leveraging tools like Seller Managed Placement and Origin Split, sellers can treat logistics not as a cost center, but as a strategic asset that improves cash flow and supply chain data visibility.
To continue optimizing your Amazon operations, explore our other expert interviews and guides:
- Creating Winning Amazon Products: An Insiderโs Post-Launch Guide
- Amazon Product Research: An Insiderโs Guide to Finding Untapped Opportunities
- Selling on Amazon Europe
- AI for Amazon Sellers: An Insiderโs Guide to Building Customer Personas
- FBA Grade and Resell Program
Optimize Your Supply Chain with Carbon6
While AGL streamlines the physical movement of goods, managing the profitability of that inventory requires robust data. Carbon6 provides the Amazon inventory forecasting software you need to predict demand, manage reimbursements, and optimize profitability. Explore Carbon6 solutions to build a more resilient Amazon business.