Amazon has poured billions of dollars to warehouse growth during the past decade to generate space for the gigantic influx of stock that the provider is storing for third party vendors. Now, it’s putting in place a program to induce those vendors to use the space better, penalizing people who don’t.
It’s part of Amazon’s attempt to ease its developing warehouse congestion problem. The company can not open fulfillment centres fast enough to meet with the demand that comes with having millions of outside vendors on Amazon. Third-party retailers now accounts for more than half of merchandise sold on the website.