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Amazon has a new invite-only programme that could solve its growing warehouse congestion problem

Amazon has been testing a new invite-only warehouse and shipping programme called ‘FBA Onsite’

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What a warehouse under Amazon's FBA Onsite program would look like. Photo: Amazon

By Eugene Kim

Amazon is testing a new invitation-only programme that would provide sellers with more efficient storage and shipping options and allow merchants to add Amazon’s software and logistics into their own warehouses.

Amazon described the new service, called FBA Onsite, as a “groundbreaking” programme that combines the best parts of its existing fulfilment programmes and brings down shipping rates, according to an invitation that was sent to sellers and viewed by CNBC.

The invitation also notes that the programme should be considered a “work in progress” as Amazon will continue to refine the process based on user feedback. Bloomberg first reported the programme on Monday.

The trial programme started about three months ago and invited less than 50 sellers, according people familiar with the matter, who asked not to be named because they weren’t authorised to speak about it.

It’s Amazon’s latest effort to solve its warehouse congestion problem by using storage space owned by third-party sellers on the platform rather than just building out more fulfilment centres.

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