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Amazon Tests Cheap Warehouses to Make Cyber Monday Snafu-Free

The aim is to meet holiday demand and the company’s next-day shipping pledge without running out of products.

Inside An Amazon.com Inc Fulfilment Center As It Prepares For Black Friday
Photographer: Simon Dawson/Bloomberg

Amazon.com Inc.  is gearing up for the online holiday shopping season—super-charged on Cyber Monday—by fine-tuning its sprawling delivery network to ensure orders get to customers on time. To that end, the company is testing a new inventory storage service to help meet holiday demand and its next-day shipping pledge without overcrowding its warehouses or running out of products.

The new service, Amazon Storage and Replenishment, lets its merchants stage inventory close to Amazon’s delivery operation so products can be quickly replenished, according to documents reviewed by Bloomberg. Amazon is trying out the program in Ontario, California, about 20 miles from its closest facilities and has plans to expand the program to other locations around the country, according to the documents.