Dive Brief:
- Amazon has added two new China-to-U.S. air freight shipping options within its Amazon Global Logistics umbrella of services, the company announced to sellers last week.
- The company's Air SMP service enables users to split up their inventory at origin and ship directly to fulfillment centers in five U.S. regions via daily flights from Shanghai and Hong Kong. Shipments arrive in an estimated seven to 10 days after pickup. There is no inbound placement fee for Fulfillment by Amazon users and no additional surcharge on apparel, electronics or lithium battery products.
- Amazon's Economy Air offering provides a lower-cost air freight option, with rates below that of the standard Amazon Global Logistics air service. Economy Air has an estimated transit time of 11 to 15 days from Shanghai or Shenzhen to Los Angeles.
Dive Insight:
The new air freight capabilities provide shippers with "faster replenishment, more placement control, and lower costs," according to Amazon, which did not disclose prices in the announcement. Faster and more effective inventory positioning has been top of mind for Amazon as the company looks to reduce delivery times for end customers.
"Both services are ideal for peak season preparation, stockout recovery, or time-sensitive product launches when ocean transit is too slow," Amazon said in the announcement.
The e-commerce giant has been steadily expanding its logistics capabilities since the launch of Amazon Supply Chain Services earlier this year, a suite of offerings that includes Amazon Global Logistics. Amazon Global Logistics provides businesses with air and ocean freight shipping services from China into the U.S., U.K., European Union and Japan, plus Vietnam-to-U.S. ocean shipping. The company recently launched a direct rail service under Amazon Global Logistics to move West Coast-based inventory to the East Coast faster.
Air SMP builds upon Amazon’s Seller Managed Placement shipping capabilities, which includes ocean transportation options. By splitting up inventory at origin before shipping directly to regional locations, businesses can optimize the distribution of their products across fulfillment centers, according to Amazon.
Meanwhile, Economy Air offers cost savings in exchange for speed. The typical transit time for Amazon Global Logistics' air freight service from Hong Kong or Shanghai to the U.S. is seven days, compared to Economy Air's 11 to 15 days. Economy Air still outpaces ocean freight replenishment by weeks, Amazon noted.
Rates, service details and booking options for Air SMP and Economy Air are available on the Amazon Global Logistics program portal, according to the company.
