Amazon Announces End of Commingling Inventory Practice

Amazon revealed significant announcements at its Accelerate conference, introducing new AI tools to streamline seller tasks.

However, the most notable change was the decision to discontinue the practice of “commingling,” a logistics method that has been a point of contention for years.

Commingling, in Amazon’s context, involves combining identical items from different sellers under a single manufacturer barcode and shipping the closest unit to the customer, regardless of the original supplier.

While this practice has expedited deliveries and optimized warehouse space, concerns over counterfeit, damaged, or expired products have persisted.

Several brands, including Johnson & Johnson, Tovolo, Wüsthof, and Bose, have faced challenges related to commingling, prompting them to restrict fulfillment through Amazon.

• Johnson & Johnson withdrew products in 2013 due to expired or damaged goods from third-party sellers.
• Tovolo experienced counterfeit issues when shipments slowed down, revealing vulnerabilities in the commingled inventory system.
• Wüsthof and Bose also took measures to safeguard their products from unauthorized distribution.

To avoid commingling, sellers could apply a unique Amazon barcode to each product, a process known as “re-stickering,” which incurred additional costs.

Amazon’s decision to end commingling was driven by improvements in its logistics network, a rise in brand-owned sellers opting out, and enhanced tracking capabilities.

As a result, commingling will be phased out later this year, ensuring customers receive products directly from the seller without mixing inventory.

This change eliminates the need for costly re-stickering and offers brands more control over their inventory across sales channels.

Industry experts view Amazon’s move as a significant step to protect brands on its platform.