Just had dinner with a friend who works in logistics for the local Amazon Distro center. We spend the entire hour talking about the Switch mishap. Figured I'd share some insight on what he told me. Keep in mind he's only privy to information relating to his particular warehouse, and that most of what he said could be easily deduced from examining how Amazon does their shipping between different distro centers. It just took him explaining it to me for it to "click." I'm going to keep this pretty dry.
First off, he mentioned that Amazon suffered a complete blackout on their internal back-end network, for roughly 5 hours earlier this week. Would have backlogged shipments. Second, our local distro center received their Switches a week and half ago. I know this, because he shot me a funny txt message when he saw the shipment being unloaded. Third, a "not insignificant" amount of the Switches local to me were sent out to Southern California on Wednesday night / Thursday morning. More on this in a second.
So, based on that info (including more details which I won't share), here's some thought on what might have happened. As many of you have pointed out, Amazon opened up pre-orders again last night, and had Switches up for Amazon Now service. If what some of the CSRs are saying, that Nintendo dropped the ball on fulfilling Amazon's initial allotment are true, why would Amazon reopen pre-orders the night before release? Doesn't make any sense. Also, if you take into consideration that initial Switch allotments went out to distro centers at least a week ago, why wouldn't Amazon have been monitoring the situation more closely? If they were using excess stock from various distro centers around the country to help make up for that, why would they also wait until Wed to ship them? If they have excess, and there is the potential for a shortage somewhere, why wait until the last second to get them moving? If the "supposed" missing stock did show from Nintendo, it's not a big deal. Here's why: Those Switches that left the distro center by me, and ended up in SoCal didn't go directly to the distro centers there. They went directly to customers. I'm sure most of you have ordered items from Amazon that have originated from centers that aren't local to you. My BotW Special edition arrived today from Indiana, even though my local distro had stock of them. The point is that even though Amazon knew they were going to have issues in areas like SoCal and NYC, rather than just ship the Switches out in large pallets and let the SoCal / NYC distros deal with the fallout; they bogged down other distro centers, by having them stop preparing packages for local shipment, and gave priority to the shipments heading further out. It effectively caused order issues across the US, instead of just in the specific areas with apparent shortages. Explains why orders seemingly everywhere weren't updated with shipping information until this morning, and those orders missed release day shipment.
I know this post screams of "my uncle works for Nintendo", but everything mentioned here (minus the network outage) was actually already known. This thread, the pictures of Switches at distro centers from a couple weeks ago (also posted to GAF), Amazon reopening pre-orders / Amazon Now orders, etc. It just took my buddy laying it out logically for me to see what exactly happened. I have no idea if Nintendo did short retailers on Switch orders, but Amazon should have handled that in much better fashion if that was the case.