Amazon AWD: Store & Replenish FBA Inventory Easily
Amazon Warehousing and Distribution (AWD) marks a major advancement in supply chain management solutions offered by the ecommerce leader.
As more businesses expand across multiple online marketplaces to reach a wider audience, having an efficient, reliable warehousing and distribution system is more essential than ever.
In this article, we’ll explore how Amazon AWD works, its advantages, and how it can help businesses simplify operations while boosting their logistics performance.
Understanding Amazon AWD
Amazon AWD is an affordable solution for storing bulk inventory long-term and distributing it to both Amazon fulfillment centers and external sales channels.
Effective inventory management is key to success in ecommerce. With AWD, Amazon sellers and other ecommerce brands can securely store and replenish their stock, ensuring they never run out of inventory on any platform.
Key Benefits of Amazon Warehousing and Distribution
For businesses without their own warehouse facilities, managing inventory waiting for FBA or other channels can be tricky. That’s where AWD steps in.
Let’s break down the major benefits of using AWD for your Amazon selling business:
- No FBA inbound placement service fees: Starting March 1, 2024, Amazon introduced a new FBA inbound placement service fee for splitting shipments. However, if you use AWD, you won’t pay this fee.
- Automatic inventory replenishment for FBA: AWD ensures your FBA inventory stays stocked. With auto-replenishment, your inventory is sent to Amazon fulfillment centers as soon as levels drop.
- Multi-channel inventory distribution: You can store all your inventory with AWD and have Amazon distribute it between FBA and your other ecommerce channels.
- Affordable bulk storage options: AWD offers clear, cost-effective pricing for bulk inventory storage — ideal for Amazon sellers and ecommerce brands needing reliable storage space.
Amazon Warehousing and Distribution Pricing
There are two main pricing tiers for Amazon AWD, depending on how you manage transportation:
- Base rates: Applied when you use your own transportation or carrier service to send inventory to AWD.
- Integrated rates: If you opt for Amazon Global Logistics (AGL) or the Partnered Carrier Program (PCP) to handle transportation, you’ll benefit from a 25% discount on AWD storage and a 15% discount on processing and transportation.
This makes using Amazon’s partnered logistics providers a smart, cost-saving choice for managing your inventory deliveries.
What is Supply Chain by Amazon?
Amazon Global Logistics, Partnered Carrier Program, and Amazon Warehousing and Distribution are all part of the broader Supply Chain by Amazon suite. This set of tools is designed to efficiently move your products from production to your customers’ hands, streamlining the entire fulfillment process.
How to Get Started with Amazon Warehousing and Distribution
Interested in using AWD for your inventory storage and FBA restocking needs? Here’s how to enroll:
Head to the AWD page in Seller Central and click on “Enroll” at the top of the screen. You can find this by navigating to Menu > Growth > Explore Programs > Amazon Warehousing and Distribution.
On this page, you’ll also find more information about warehousing and distribution services, features, and FAQs. Once enrolled, you can manage your shipments, track inventory, and monitor replenishments — all from one convenient dashboard.
Amazon makes it simple to send inventory to warehouse and keep everything organized.
Is AWD Right for Your Amazon Business?
Amazon Warehousing and Distribution offers an affordable, hassle-free way to store inventory and automatically replenish FBA stock as needed. It’s a practical solution for businesses looking to reduce costs, improve efficiency, and stay in stock.
Thinking about trying amazon warehouse for your business? Visit the AWD page on Seller Central to get started and see how it can support your inventory strategy.
Got questions about how it works? Drop them in the comments — we’re here to help!
