PICS

PICS was developed to simplify cross-border inbound logistics for vendors supplying Amazon’s European network. Instead of sending separate shipments to multiple fulfilment centres in different EU countries, vendors can deliver goods to one designated inbound hub, where Amazon consolidates and redistributes inventory internally.

How It Works:

1. Amazon designates a PICS hub (e.g., in Germany, France, or Poland).
2. Vendors ship products to this single hub rather than to multiple FCs.
3. Amazon handles the secondary distribution - moving goods to FCs across Europe based on demand forecasts.
4. PICS can operate under both 1P (Vendor Central) and FBA (Fulfilment by Amazon) frameworks, depending on the vendor’s setup.

Benefits for Vendors:

• Simplified logistics: One delivery location instead of multiple national FCs.
• Reduced costs: Fewer shipments and lower cross-border transportation expenses.
• Operational efficiency: Less complexity in preparing and routing shipments.
• Faster distribution: Amazon manages internal redistribution, ensuring better stock balance across EU markets.
• Scalability: Easier to expand into new European marketplaces.

Benefits for Amazon:

• Optimised network flow: More efficient FC utilisation and inventory balancing.
• Improved customer experience: Products reach customers faster across countries.
• Lower inbound congestion: Fewer fragmented deliveries from vendors.

Challenges:

• Reduced control for vendors: Amazon decides redistribution destinations and timing.
• Longer total transit time: Consolidation adds a logistical step before FC delivery.
• Limited eligibility: Not all vendors or product types qualify (depends on volume, packaging, and compliance).
• Regulatory complexity: Customs and VAT obligations vary across borders.

Why It Matters:
PICS is a key element of Amazon’s Pan-European supply chain optimisation, helping vendors manage inbound shipments more efficiently and cost-effectively. It supports Amazon’s goal of a unified, demand-driven European logistics network.

Example:
A French electronics vendor enrolled in PICS ships all products to Amazon’s PICS hub in Germany. From there, Amazon automatically redistributes inventory to fulfilment centres in Spain, Italy, and the Netherlands, based on customer demand.

In short:
PICS (Pan-European Inbound Consolidation Service) is an Amazon logistics programme that streamlines EU vendor operations by allowing shipment to a single consolidation hub, where Amazon handles redistribution across multiple European fulfilment centres.