Bryan Porter Profile picture
Apr 17 5 tweets 3 min read Read on X
We toured an Amazon fulfillment center yesterday. It’s unbelievable.
 
Their inventory storage is counterintuitive. It’s organized randomness.
 
• Inventory is stored on moving shelves. Robots take shelves to the pick stations.
• Inventory is randomly placed on shelves, tracked by cameras.
• A SKU’s inventory is spread out across bins to always be close to a pick station.
• Shelves move over QR codes. Amazon always knows where everything is.
• Inventory counts are automated with cameras.
 
The computing that goes into the operation is incredible. Not sure it’d be possible without AWS.
The moving shelves take inventory to human pickers. Pickers remove the item in the order and place them in a bin.

Bin travel down miles of track to boxing stations.

Tracks either take the order to single unit boxing or multiple unit boxing.

Inventory is almost always moving.
Packaging for single unit orders is automated with custom boxes.

Items move down a track and have a custom box built around them as they keep moving. 🤯

I wasn’t allowed to video this machine so here’s a YouTube video. The machine is the CW 1000.

After items are boxed, they travel to loading stations.

Along the way boxes are weighed and given shipping labels. Boxes don’t stop moving, shipping labels are applied with air compressors to not damage boxes.

Based on the order’s destination, boxes are pushed down chutes to different loading stations.
We toured the BFI4 fulfillment center in Kent, Washington. They only store and fulfill items less than 25 lbs.

It’s a 850k sqft facility with 3 levels of storage and full air conditioned. It operates 24/7.

Amazon has different fulfillment centers for oversized items, refrigeration, returns processing and more.

It’s hard to overstate how big of an advantage logistics give Amazon over their competition.Image

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More from @jbryanporter

Dec 28, 2023
We started Simple Modern with $200k.

In 8 years, we've sold half a billion dollars of insulated drinkware through Target, Amazon & DTC.

We're licensed with Disney, NFL & more.

Our best threads about how we did it:
Our biggest operational learnings from scaling the brand:

How we elevate DTC as an Amazon & Target native brand:

Read 13 tweets
Oct 7, 2023
Parenting toddlers is exhausting.

They're called the “Terrible-Twos” and “Threenagers” for a reason.

7 essential investments for parenting these emotional years:
I'm the father of 3 boys: 7, 5 and 3 years old. My last time to parent a toddler with my youngest.

It's hard, thankless work met with tantrums and defiance.

But Investing in your toddler builds a foundation for growth.

Here are 7 investments I make daily:
1. Invest in Their Emotions:

Toddlers are emotional messes.

Anger, sadness, fear, frustration, jealousy, etc.

Labeling emotions normalizes them and builds a vocabulary.

Identifying their emotions opens the door to discuss why they feel that way.
Read 17 tweets
Jun 23, 2023
We've sold over $300 million on Amazon in 7 years.

The most interesting part?

We started Simple Modern as a marketplace seller (3p) and scaled it as a retail vendor (1p).

The ultimate comparison of Amazon Marketplace vs Retail:
What is the Difference?

Marketplace - 3rd party (3P)
Brands sell on Amazon, often paying Amazon to ship to customers (FBA). Amazon makes commission.

Vendor – 1st Party (1P)
Similar to traditional retail, like Target and Walmart. Amazon buys and owns inventory sold to customers.
Pricing - Retail Changes:

Marketplace✅
Sellers have complete control over an item's retail price. They can change it in 15 minutes.

Vendor❌
Amazon controls retails. Prices can take weeks too move up (moves down are quicker).
Read 16 tweets
Mar 14, 2023
DTC is TOUGH for retail focused brands.

This was our first $1+ million DTC revenue week.

Here's our website strategy that's working:
Mass retail is Simple Modern's strength.

Low margins help us dominate on Amazon and Target.

Demand capture is our specialty but DTC requires demand creation.

Creating demand often takes a huge ad budget, something we just don't have.

Our website must add unique value.
Channel Strategy - Mass Retail

Retailers are best at delivering orders fast and inexpensively.

You can't beat Amazon at fast, efficient delivery on $20-$50 orders.

Walmart & Target are undefeated on items under $20 items.

DTC can't compete as a low margin channel.
Read 10 tweets
Feb 3, 2023
Today, Simple Modern sells more drinkware than Yeti, Hydro Flask & Stanley on Amazon.

We started in 2015, bootstrapped.

21 unexpected learnings:

1. Privately-owned brands with no intent to sell are set best up to win long term.
2. Hire missionaries, not mercenaries. Employees passionate about your company's mission.

3. Bootstrapped businesses handle cash better. When cash is precious, it’s invested well.

4. Optimize for the second purchase. Lasting brands are built on loyal and repeat customers.
5. Disrupt yourself. It's better than being disrupted by a competitor.

6. Amazing imagery isn’t just to inform customers. It also signals quality.

7. Bias toward action helps when the company is small. However, it can hurt when the company grows in size.
Read 9 tweets
Jan 20, 2023
Hyper growth on Amazon requires new products.

𝟑𝟎% of our revenue is from SKUs under a year old.

5 ways we fuel growth with new SKUs:
Amazon limits the market share listings can have.

They don't want one brand to have a monopoly.

We've experienced it.

Our goal is to maximize a product's market share within 2 years.

Keep launching products or stop growing.

Here's how:
1. Adjacent Categories

Use strengths gained winning the 1st category as advantages in the next.

Example:
• Adult Water Bottles: Made best straw lid
▸ Straw Lid: Perfect for kids
• Kid's Bottles: Made amazing designs
▸ Amazing Designs: Perfect on Kid's Backpacks
Read 11 tweets

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