Prepped for Prime Day: How to win summer sales with smarter logistics

Introduction

Rolando Galliana (Host, Marketing Manager, Intentwise): Welcome, everyone, to today's session: Prepped for Prime Day: How to Win Summer Sales with Smarter Logistics. Intentwise is a commerce observability platform that unifies advertising, retail, and shopper intelligence into a single architecture—helping brands understand what happened, why it happened, and what to do next.

Joining us today is Ephraim Ash, Chief Logistics Officer at Tactical Logistics Solutions, who works closely with brands on fulfillment strategy, inventory planning, and reducing operational risk during high-stakes sales events like Prime Day.

Ephraim Ash (Chief Logistics Officer, Tactical Logistics Solutions): Thanks for having me. I've been in the Amazon ecosystem since 2013—first as a seller, then on the logistics side. Today we'll cover what's changing with Amazon fees, how to prepare for summer peak season timelines, how to layer FBA with 3PL inventory, and how to diversify fulfillment across Amazon, Walmart, and TikTok Shop.

What's New—and More Expensive—on Amazon

Ephraim: Amazon has introduced several cost increases sellers need to account for heading into summer:

• 3.5% fuel surcharge added to FBA fees, driven by rising fuel costs
• Multi-Channel Fulfillment (MCF) rate increases also taking effect
• Prime Day deal fees: A $100 upfront cost (50% due imminently), plus a 1.5% variable fee regardless of when you book
• Deducting ad costs from sales payouts: Amazon has pushed this change to August—sellers should monitor this closely as it would eliminate the cash-back benefit of paying via credit card

Why Brands Really Lose Summer Sales

Ephraim: Most brands assume poor ad performance is the culprit when summer sales disappoint. The real issue is almost always backend operations.

Here's the ripple effect of going out of stock:

• Rank tanks and is costly to rebuild
• More PPC spend is required to recover lost visibility
• Competitors capture market share that's hard to win back
• Amazon's algorithm deprioritizes listings that repeatedly go out of stock

The formula is: fix logistics first, then scale ads. Scaling ad spend on top of broken operations just accelerates losses.

Summer Peak Season Timelines: Key Deadlines

Ephraim: Three major summer sales events are converging in 2026:

• Amazon Prime Day — end of June or early July (exact dates TBD)
• Walmart Deals — July
• TikTok Shop Summer Sale — July

To be stocked and ready for Prime Day, hit these FBA inbound deadlines:

Shipment Type

Deadline

AWD (Amazon Warehouse & Distribution)

May 27th (earlier if your carrier is congested)

FBA — Single placement (paying placement fees)

May 27th (aim for a week earlier to allow FC transfer time)

FBA — 5-way split

June 5th

Why the 5-way split matters: A 5-way split distributes inventory across 50–60 fulfillment centers automatically, giving you better geographic coverage, faster Prime-eligible shipping, and more selling days. Brands that switch from placement fees to a 5-way split frequently see a measurable sales lift.

FBA vs. 3PL: How to Layer Your Inventory Smartly

Ephraim: The biggest mistake brands make is sending all their inventory directly into FBA. Here's a smarter framework:

The 2-Month Rotation Rule

For brands with year-round selling products, maintain inventory in four stages simultaneously—each holding roughly 2 months of supply:

1. In FBA (live, fulfillable)
2. In transit to Amazon
3. At your 3PL (buffer stock)
4. At the manufacturer (production/replenishment cycle)

This approach minimizes storage fees, provides a buffer against demand spikes, and virtually eliminates stockouts.

When Does AWD Beat a 3PL—and When Does It Not?

AWD's transfer fee from AWD into FBA is cheap, but its inbound, outbound, and storage fees are high. On average:

• Under 2 months of storage: AWD can be cost-competitive
• At 2–3 months: You're at break-even (varies by coast—West Coast break-even is ~2 months; East Coast ~3 months)
• Beyond 3 months: A 3PL is almost always cheaper

Note: If you have many small cartons per pallet, AWD per-carton fees compound quickly. Fewer, larger cartons per pallet favor AWD economics.

Use Your 3PL as a Profit Lever

• Import bulk goods (3–5 months of supply) but only push 2 months into FBA at a time
• Avoid Q4 FBA storage surcharges on excess inventory
• Maintain flexibility to fulfill Walmart, TikTok, and wholesale orders from the same buffer stock
• Keep a small emergency buffer (even at home) for rapid replenishment if needed

Speed to Shelf: Why Carrier Choice Matters

Ephraim: Amazon Partner Carriers (used for standard FBA shipments) drop trailers in Amazon's yard, where they can sit 1–3 weeks before being checked in and received. That delay is invisible to sellers—but it's costing selling days.

Third-party carriers like Tactical perform live unloads, meaning the driver stays until the freight is offloaded and checked in immediately. Delivery timelines:

• Local: 4–5 days to check-in
• Cross-country: 8–10 days to check-in

For sellers currently paying placement fees (single-location shipments), Tactical's SplitSmart service offers a flat per-pallet fee for 5-way splits from three locations (Texas, New Jersey, California)—no placement fees, predictable costs, faster shelf availability.

Multi-Channel Fulfillment: Amazon, Walmart & TikTok Shop

Ephraim: Think of each channel with a distinct role:

• Amazon: Your core volume engine—maximum visibility, highest fees, needs tight inventory discipline
• TikTok Shop: A demand accelerator—viral potential is real, but demand spikes can be sudden and massive. Stay flexible and avoid overselling
• Walmart: Better margins than Amazon (lower fees), steadily growing market share, good option for brand diversification

Inventory Strategy by Channel

• Amazon: Optimize relentlessly to avoid fees—stay Prime-ready but don't over-stock FBA
• TikTok: Maintain flexible buffer stock; TikTok has strict shipping windows and a single viral moment can generate thousands of orders overnight
• Walmart: Stay compliant with Walmart's distinct fulfillment requirements; maintain steady, reliable fulfillment cadence

Just Starting on TikTok?

Use MCF (Multi-Channel Fulfillment) initially—one shared inventory pool, orders fulfilled from FBA. Once volume justifies it, shift TikTok inventory to a 3PL for more flexibility and control. A shared inventory system at a 3PL can automatically sync available counts across both channels to prevent overselling.

The New Growth Formula

Ephraim:

Logistics + Inventory + Ads — in that order.

Build the operational foundation first:

1. Confirm landed costs, HS codes, and tariff impact
2. Calculate 3PL vs. FBA economics for your specific product profile
3. Decide on placement fees vs. 5-way split
4. Establish your replenishment cycle

Then turn on ads to amplify what already works. Ads on a broken operational foundation don't scale a brand—they drain it.

Q&A Highlights

Q: Is TikTok requiring sellers to use Fulfilled by TikTok or verified 3PLs? A: TikTok sent enforcement notices but has not enforced those requirements. Tactical is fully compliant with TikTok's current 3PL requirements, and sellers can continue using their existing 3PL for TikTok orders for now.

Q: I have 4 months of inventory sitting in FBA right now. Should I unwind it? A: Run the numbers. Factor in removal fees (which have increased significantly), ~3–4% damage rate on removals, and what your 3PL would charge for that buffer period. If an extra pallet in FBA costs ~$64/month and removal costs $300+, leaving it may be more economical in the short term. Every brand's math is different.

Q: At what point does AWD become more expensive than a 3PL? A: Roughly at the 2-month mark on the West Coast and 3 months on the East Coast, based on average rates. The per-carton in/out fee structure is the biggest variable—high carton counts per pallet make AWD expensive fast. Use Tactical's calculator (available on request) to run your specific scenario.

Q: We sell on Amazon and are just starting TikTok Shop. Should we use separate inventory? A: Start with a shared inventory approach via MCF or a 3PL with channel-linked inventory. This prevents overselling during demand spikes—the biggest risk for new TikTok sellers.

Closing

Ephraim: Logistics is the foundation that everything else is built on. Whether you're heading into Prime Day, Walmart Deals, or TikTok's summer push—nail your inventory positioning first, and the ads will do their job. Happy to help any brand work through the numbers. Reach out directly or book a strategy session.

Rolando: Thank you, Ephraim. Join us next week—May 6th at 10 AM PT / 1 PM ET—for our next webinar: Leveraging the Power of AMC for Pre- and Post-Prime Day, hosted by Intentwise CEO Sreenath Reddy. Good luck with Prime Day prep, everyone.

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