Amazon to phase out local fulfillment in Singapore, including grocery delivery via Amazon Fresh

"A small number of roles" in Amazon Singapore’s Stores organisation will be impacted, the company has confirmed.

Amazon has decided to phase out local fulfillment of orders in Singapore, including the winding down of its grocery delivery service, Amazon Fresh and its partnership with local grocery suppliers. As such, customer orders are likely to arrive from overseas fulfillment centres instead of Singapore warehouses.

This development, which the company shared in a statement, has been linked to customer demand and preferences.

While previously customer sentiment seemed to point towards wanting a local storefront in Singapore, which led to the launch of Amazon.sg in 2019, the company said international selection from its US, Japan, and Germany stores has since taken precedence, adding that the majority of units sold have been from the International Store.

"In response to this feedback, we’ve made the decision to prioritise our investment in expanding Amazon International Store selection on Amazon.sg," said the company in the statement. 

What does the announcement mean for employees?

As such, "a small number of roles" in Amazon Singapore’s Stores organisation will be impacted. 

Amazon stated: "We’re working closely with affected employees, including helping them find new roles within Amazon wherever possible. For those who are unable to find a new role or choose not to pursue one, we are offering transition support including severance payments and career transition services.

CNA has pegged the layoffs to affect "less than 10 per cent" of the company's total workforce in Singapore, in a response by the company to its queries.

Amazon currently employs 2,500 employees in Singapore, across retail, Global Selling, entertainment, devices, and AWS business lines.

What does the announcement mean for customers?

Amazon.sg customers will continue to see a local storefront with locally relevant deals, and will maintain their Prime membership specifically for Singapore.

Peter Li, Amazon Singapore Country Manager, shared that given the strong demand for products from international stores, investment will be increased in value selection from around the world with fast, reliable delivery. He added that eligible orders will still benefit from delivery in two days, in addition to customers being able to pay in local currency with local payment methods.

Meanwhile, the company is also working to transition vendors and sellers to alternative ways to continue to serve Singapore customers where possible.

Lead image / Amazon media library

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