To assist third-party sellers at every stage of the supply chain, from the production plant to the customer's door, Amazon is introducing a new service.

The massive software and e-commerce company located in Seattle said on Tuesday that it would introduce a new program called Supply Chain by Amazon. Under this program, entrepreneurs who sell goods on Amazon's digital marketplace will be able to purchase a complete, entirely automated collection of logistics services from Amazon.

Through the Fulfillment by Amazon program, which was introduced in 2006, Amazon stores, packs, ships, and delivers goods to customers on behalf of other sellers, handling some of those procedures for third-party merchants previously. The business now desires to become involved even sooner in the procedure.

Amazon will assist in moving goods from one point of the chain of custody to the other through the new initiative. This can entail gathering goods from a production plant, transporting them across international borders, managing taxes and customs clearance, and locating warehousing space.

In an interview, Dharmesh Mehta, vice president of international selling partner services at Amazon, stated, "For vendors, it simplifies the entire journey." Additionally, he mentioned that it could increase dependability. It expedites the process. They can also accomplish all of this for less money. That translates into a lot more time for some tiny firms.

Mehta was unable to provide an estimate because to the variable nature of the seller's merchandise, including its weight, size, and destination, which would affect the cost of using Supply Chain by Amazon.

The company's most current financial data, which was revealed in August, shows that third-party merchants account for more than 60% of sales in Amazon's store.

By leveraging machine learning to automatically replace inventory and stock up in locations where they anticipate customer demand, Amazon intends to assist sellers in automating portions of the supply chain.

As part of the new program, merchants can also use Amazon's services to distribute their goods to other physical and online retailers in addition to Amazon's network of warehouses.