Introduction
On January 7, 2025, a sudden wildfire broke out in southern California and quickly spread to Los Angeles County. The disaster not only destroyed large areas of land and thousands of homes and structures, but also caused serious damage to local infrastructure. With a new round of “ Santa Ana winds ” The arrival of the fire could further intensify. The fire not only plunged California into a dark moment, but also brought unprecedented challenges to Amazon's logistics system, so what impact did it have on our POD clothing sellers who settled in Amazon? What should we POD clothing sellers do? Next, this article gives you a detailed introduction to the current situation of the Los Angeles fire, as well as the status quo of Amazon's warehouse and the countermeasures that POD clothing sellers can do, hoping to help you.
Logistics dilemma in disaster
Under the impact of the Los Angeles wildfires, Amazon's logistics and cargo warehousing are facing multiple challenges. Here are the specific impacts and measures to address them:
1. Warehouse emergency closure, logistics delay
-LBG8-LAX9 warehouse has lost power and suspended receiving goods, and there is also a fire near LGB8.
- According to SmartSupplyChainInc news, as of January 8, a number of Amazon warehouses such as SWF2, RFD2, SMF3, etc., have not been approved, and some warehouses reject as high as 90%.
- Emergency evacuation orders and road restrictions have been issued in many places, resulting in delays in dock pickup and truck delivery, and it is expected that the truck delivery of LA transhipment will be delayed by one to two weeks.
2. Rising logistics costs
- Los Angeles is an important node for international trade, and logistics delays can cause goods to not reach their destination in time, increasing warehousing costs.
- In order to improve delivery efficiency, sellers may need to find alternative logistics channels, which involve longer transportation distances, more complex transfer processes or higher insurance costs, resulting in increased transportation costs.
3. The return rate has risen sharply
- Due to significant delays in the delivery and delivery time of orders, many buyers are concerned about the arrival time and security of goods, and have begun to return or cancel orders.
- Fires have damaged homes and put nearly 200,000 people under evacuation warnings, further fueling the return rate.
4. Overstock and sales strategy adjustment
- Affected sellers need to assess inventory, sales and logistics risks in real time and make decisions based on fire trends and logistics dynamics.
- Sellers can consider shifting inventory or looking for alternative logistics solutions to mitigate losses.
5. Changes in needs in the post-disaster reconstruction stage
- During the post-disaster recovery phase, consumer demand in the Los Angeles area may change, and demand for some goods will surge.
- Demand for products such as clothing, daily necessities, emergency supplies (such as smoke alarms, first aid kits), sleeping bags, tents, fuel bottles, anti-smog masks and air purifiers is expected to increase significantly.
Note: These problems may last for some time, it is recommended that POD clothing sellers or other affected Amazon sellers actively respond to make remedial strategies in time to reduce the loss in the fire.
Economic loss forecast
According to a new study released by jpmorgan Chase Bank, the cost of the unprecedented wildfires in the Los Angeles area has climbed to nearly $50 billion, and the number is still climbing. The insurance industry could be on the hook for more than $20 billion in losses, estimates that could vary depending on when the fires are finally contained.
Update on Los Angeles fire
The Los Angeles fire continues to spread after days of heavy casualties and property damage. . Specifically, the Palisades Fire in Los Angeles has been burning for days and is moving toward downtown Los Angeles, prompting evacuations in Brentwood and Encino, among other areas. . So far, the fires have killed at least 16 people and destroyed more than 12,000 homes, making it one of the most destructive wildfires in U.S. history. . At the same time, a number of well-known wealthy districts were mostly burned down, a large number of luxury cars were abandoned on the street, and a number of celebrities' mansions were also not spared. . In response to the blaze, firefighters from Mexico, Canada and other states have been sent to Los Angeles to help fight the blaze. The governor of Texas has also sent firefighters to California to help. . However, due to dry weather and strong winds, the fires remain difficult to control, and several wildfires are already completely out of control. . In addition, multiple acts of arson have been reported, and the Los Angeles Police chief has set up a task force to investigate the origin of the fires. . The fire not only brought huge loss of life and property to the local residents, but also caused serious impact on the local society and economy.
It is reported that the Los Angeles fire is still spreading today (January 13, 2025), has caused heavy casualties and property losses. As it may be again in the next two days “ Santa Ana winds ” Weather, wind strength, gusts of up to 110 kilometers per hour, the monsoon is expected until the 16th will not subside, so the next few days of fire fighting operations will face a severe test. .
Overall, the latest update on the Los Angeles fire is that the fire is still spreading and rescue efforts are under way, but the situation is still very serious. In the face of the Los Angeles fire, how are Amazon's affected POD clothing sellers coping?
Before the recovery of the affected warehouse, the seller can consider setting up temporary warehouses in other regions or countries, especially the sellers with Los Angeles as the logistics hub, to restore the supply of goods as soon as possible, in order to continue to meet market demand and reduce losses. However, this will inevitably encounter a shortage of goods, the need to re-transport the problem, it is recommended that conditional sellers can at the beginning, actively layout multi-warehouse, do not put all inventory in one area, such behavior not only helps shorten the delivery time (divided warehouse to each area), improve customer satisfaction, but also to avoid the sudden risk of the Los Angeles fire. At the same time, the affected POD clothing sellers should also maintain close contact with the Amazon platform to understand the platform's policies and compensation measures in the case of warehouse closure, logistics delays, etc., to make up for and reduce their losses as much as possible.
Conclusion
The Los Angeles fire was not only a natural disaster, but also a huge impact on the local economy and logistics system. Whatever the cause of the fire, natural or man-made, the event has already happened, and the impact and damage has already been done. We POD clothing sellers need to take active and effective measures to deal with the current challenges, and to prepare for the recovery and compensation measures to reduce our losses in this disaster. Finally, it is hoped that this disaster can be brought to an early end and normal life and business order can be restored.
FAQ
1. Q: Which Amazon warehouses were affected?
- including LBG8-LAX9, LGB8, SWF2, RFD2, SMF3 and other warehouses have been affected to varying degrees. According to SmartSupplyChainInc news, as of January 8, Amazon SWF2, RFD2, SMF3, FTW1, FAT2, MIT2, GEU3, IUSP, TEB9, MQJ1 and other warehouses have not approved the contract. MCO2, SNA4, XLX1 and other warehouses reject up to 90%. IAH3, MCE1, SCK4, ONT8, XLX6, RMN3 and other warehouses are about 3 weeks or even 1 month later. At the same time, many emergency evacuation orders and some road restrictions have been issued, resulting in delays in the timing of container pickup and truck delivery at the dock, and the timing of truck delivery in recent LA transfers is expected to have a delay of one to two weeks, and the overall timing of warehouse delivery will be extended.
2. Q: How will logistics delays affect sellers?
- Logistics delay may cause the goods to fail to reach the destination in time, increase the storage cost, and also lead to an increase in the return rate. Although the logistics delay this time is caused by the Los Angeles fire, it also makes some buyers question the quality of our service and even give negative feedback, affecting our product links. Because the logistics is delayed or unable to send, it will put us in a “ Out of stock ” In this state, no matter it is divided into warehouses, or replenishment to other FBA warehouses, or other strategies, we will suffer certain losses and pressure to increase inventory. The losses are unavoidable, and we can only make up for and reduce them as far as possible.
3. Q: How to deal with the rise in logistics costs?
- Sellers can look for alternative logistics channels, although this may involve longer transportation distances, more complex transit processes or higher insurance costs, so affected Amazon sellers need to comprehensively evaluate what method is best for them, if there are explosive products in the store, in order to ensure that the product continues to sell and does not fall in the ranking. It is necessary to make certain trade-offs, if the product does not have too many sales, or the operating costs of each product are not large, belonging to the fine shop model, then you can appropriately give up some of the less important links, only the main links are properly remedied, and actively open up new products, at the same time, the layout of multi-warehouse product inventory, To cope with unforeseen emergencies and crises.
4. Q: What will be the changes in demand during the post-disaster reconstruction phase?
-In general, in the post-disaster reconstruction phase, the demand for products such as clothing, daily necessities, and emergency supplies outside the home is expected to increase significantly, but equally, because of the relationship between losses, the purchasing power of these people in need will also change, and there will often be external donations or centralized procurement by the government. Therefore, unless Amazon sellers who have already laid out related products before to see if they can get more sales from it, the rest of the merchants are not recommended to layout at this time, although the impact of the subsequent fire may still last for a long time, but the uncertainty is too great, even if you want to enter the game now, you should control costs and risks.
5. Q: How should sellers communicate with Amazon?
- Sellers should maintain close contact with the Amazon platform, understand the platform's policies and compensation measures in the case of warehouse closure, logistics delays, and at the same time, pay close attention to Amazon's official announcement, in order to reduce their losses due to the impact of the Los Angeles fire through relevant policies and compensation measures.
