Amazon uses aggregators in its Marketplace. In fact, they make up the largest part of the marketplace. These aggregators need a lot of warehouse space for the goods they carry. The Amazon Marketplace accounts for $300 billion worth of goods sold and represents about 60% of Amazon’s total sales. There are currently 35,000 Amazon Brands that make more than $1 million in revenues.
Recently, SEKO Logistics Worldwide LLC announced a partnership with e-commerce company MyFBAPrep to serve as its preferred Amazon FBA partner. This will enable SEKO to expand offerings to Amazon and facilitate faster global fulfillment of Amazon orders. MyFBAPrep adds an additional four million square feet of new warehouse space globally.
In addition to adding to the US footprint, SEKO has warehouse space in Europe, Canada, and the Asia Pacific regions. With the new agreement, the Australia, Japan, and China markets are now also included. Each SEKO warehouse is strategically placed close to major ports and airports, allowing for order fulfillment within 24 to 72 hours.
In the race to have a competitive advantage, this move is very important for Amazon’s growth. World-wide customers now expect faster and accurate deliveries. Their Prime membership assures them that Amazon is committed to fulfilling their expectations.
MyFBAPrep is a great fit in Amazon’s current strategy; a strategy which has changed since Jeff Bezos left Amazon as chief executive. The company is now much more focused on driving for improved fulfillment and better customer service, curtailing physical expansion under new CEO Andy Jassy. Most recently, Amazon’s private label aggregators raised over $12 billion in institutional funding and were able to acquire hundreds of new Amazon brands in the last year.
MyFBAPrep is the leading e-commerce warehouse network for Amazon aggregators, especially for enterprise-level brands and Amazon top sellers. It operates more than 50 warehouses globally that offer seven million square feet of warehouse space. It moves $1 billion in gross merchandise value (GMV) and processes over 10 million units annually.
SEKO is well funded and provides a suite of logistics services to make supply chains more competitive. It has 120 offices in 40 countries worldwide. As a result, it has accumulated vital in-country knowledge and can provide excellent service at the local level.
Of note, on February 28, 2022, SEKO issued a bulletin that it had suspended, until further notice, all shipments to and from Russia. It then listed expected consequences due to fuel supply shortages and their impact on global shipping around the world. On top of already existing supply change challenges, some of the problems cited include even higher fuel prices, flight cancellations, and the effect of ocean freight cancellations. SEKO plans to address such challenges for its partners.
POSTSCRIPT: SEKO is giving Amazon customers more options for fast fulfillment of their orders. It is a powerful competitive tool, all the more since its people are experts in the region they serve. It has the technology to ensure rapid deliveries, and I am especially impressed by their in-country knowledge that enables the staff to find the best solutions for immediate service.