SPD

 SPD is a key inbound and outbound logistics method in Amazon’s supply chain, used for products that fit within standard parcel dimensions and weight limits.
It’s the preferred shipping option for vendors and sellers handling low-volume replenishment, small products, or multi-box shipments that do not require palletisation.

How SPD Works (Inbound to Amazon):

1. Shipment Creation:
   • The vendor or seller creates a shipment plan in Vendor Central or Seller Central, selecting Small Parcel Delivery (SPD) as the mode.
2. Carrier Labeling:
   • Each carton receives an Amazon Shipment ID and carrier tracking label.
3. Transportation:
   • The shipment is picked up by Amazon’s partnered carrier network (e.g., UPS Partnered Carrier Programme) or the vendor’s own carrier.
4. Receiving:
   • Upon arrival at the fulfilment centre, boxes are individually scanned, logged, and checked into inventory.

SPD vs. LTL (Less Than Truckload):

Feature    | SPD (Small Parcel Delivery) |  LTL (Less Than Truckload)

Packaging | Individual boxes | Palletised freight
Handling | Automated / parcel sorting | Forklift / manual handling
Tracking | Per-box tracking number | Per-shipment or per-pallet tracking
Ideal For | Small or frequent replenishments | Bulk or consolidated shipments
Speed | Typically faster | Slower due to consolidation

Typical SPD Requirements:

• Maximum box weight: 50 lb (22.7 kg)
• Maximum box dimensions: 25" x 20" x 15" (varies by region)
• Labelling: Each carton must have both an Amazon FBA/VC label and a carrier label.
• Carrier options: Amazon-partnered (preferred) or non-partnered carriers.

Benefits for Vendors and Sellers:

• Fast check-in: Boxes are received faster at FCs compared to LTL.
• Convenient for small shipments: No need for pallets or freight booking.
• Scalable: Ideal for regular restocks of fast-moving SKUs.
• Full visibility: Real-time tracking for each package.

Benefits for Amazon:

• Operational efficiency: Smooth handling in Sortable FCs.
• Network flexibility: Supports distributed, high-frequency inbound flow.
• Reduced bottlenecks: Simplifies dock management vs. freight deliveries.

Challenges:

• Higher per-unit cost: Parcel shipments are less cost-efficient than consolidated freight.
• Carrier dependency: Performance depends on external courier reliability.
• Packaging compliance: Incorrect labelling or oversize boxes can cause delays.
• Tracking complexity: Each carton is tracked individually, increasing admin work.

Example:
A vendor sends 24 cartons of smartphone accessories (each weighing 10 lb) to Amazon’s fulfilment centre using UPS Small Parcel Delivery.
Each carton has its own tracking number and is checked into inventory within two business days.

Why It Matters:
SPD ensures fast, flexible, and traceable inbound logistics for sellers and vendors managing lightweight, high-turnover products.
It’s a vital delivery option within Amazon’s Fulfilment by Amazon (FBA) and Vendor Central supply chain frameworks.

In short:
SPD (Small Parcel Delivery) refers to shipments of individually boxed units delivered to Amazon fulfilment centres via parcel carriers - ideal for small, light, or frequent replenishments requiring fast check-in and full tracking visibility.