West Coast Congestion: What Amazon Sellers Need to Know for Q4 Inventory Management

First it was the East Coast port strike. Now, Amazon’s West Coast warehouses are bursting at the seams. As Q4 approaches, Amazon sellers face yet another supply chain headache that could make or break the holiday season.

Here's what you need to know—and, more importantly, what you can do about it.

The Current Situation

Amazon's cross-dock (IXD) network is experiencing major congestion on the West Coast. With facilities like AWD and all West IXD locations at full capacity, Amazon has been forced to halt inbound shipments to some locations. For sellers preparing for Q4, this presents both challenges and opportunities.

What's Behind the Bottleneck?

Several factors have contributed to the current situation:

• Increased reliance on palletized freight to West Coast locations
• Non-partnered carriers facing routing challenges
• Traditional Q4 inventory build-up starting earlier than usual
• Extended processing times at major cross-dock facilities
• Understaffed FCs and network restructuring 

Amazon's Response and What It Means for You

To try and deal with the West Coast bottleneck, Amazon has rolled out a few temporary measures. But of course, it's a little more complicated than just rerouting shipments:

Fee Adjustments

Amazon is offering East Coast incentives by dropping inbound placement service fees by $0.05 per unit. Not a huge discount, but hey, we’ll take it, right? For a shipment of 1,000 units, that's a $50 savings per shipment.

Extended Shipment Windows

If you created shipments between August 7 and October 31, the automatic closure window has been stretched to 90 days, and the abandoned shipment window is now 45 days. So if you're not planning on sending certain shipments, cancel them to keep your capacity limits in check.

The "Just-in-Time" Dilemma

If you're using a "just-in-time" approach to inventory, you might want to reconsider this for Q4. With longer receive times on the West Coast, it's possible your inventory could get delayed, leading to stockouts and missed sales opportunities during the busiest time of the year.

East and Central regions are far less congested, so if you can, divert your shipments there. While Amazon's optimized shipment split options might not be the cheapest choice, they could be the most efficient for ensuring your products reach customers in time.

Other Options to Mitigate Delays

For international sellers, switching to air freight or working with Amazon’s Partnered Carrier Program could help avoid bottlenecks. Additionally, if you can arrange night or weekend delivery slots, you might secure earlier appointments for your inventory at West Coast IXD facilities.

What You Can Do Now

Don't let West Coast congestion derail your Q4 plans. And if you're relying on Amazon to handle all your inventory needs, it’s time to think differently. Here are the key steps you should take to avoid delays:

1. Stay Stocked: Use inventory management tools like SoStocked by Carbon6 to monitor your supply, forecast demand accurately, prevent storage fees, and adjust your marketing strategies to avoid stockouts.‍
2. Review Your Current Shipments: Check all pending West Coast shipments in Seller Central and cancel or redirect non-urgent shipments to less congested regions. Take advantage of Amazon's reduced East Coast placement fees.‍
3. Adjust Your Q4 Strategy: Split upcoming shipments between East and Central regions where possible. Build in extra lead time for essential West Coast inventory. Consider air freight for your highest-selling items.

We get it—making these adjustments mid-Q4 isn’t what you had planned. But taking action now can prevent more serious disruptions during the holiday rush. The sellers who adapt fast might just turn the congestion into a competitive edge.