Overview

Amazon Warehousing and Distribution (AWD) gives FBA sellers low-cost bulk storage that sits upstream of fulfillment centers, with automated replenishment into FBA when inventory runs low. The program eliminates inbound placement fees, peak season storage surcharges, and the need to coordinate multiple freight forwarders. It's available immediately to all FBA sellers at no enrollment cost.

Key Points

• Bulk storage at lower rates — AWD storage costs less than standard FBA warehouse fees, especially during Q4 when aged inventory surcharges spike
• No placement fees — AWD pricing includes FBA inventory placement, eliminating separate charges for distributing inventory across multiple fulfillment centers
• Automated FBA replenishment — Amazon monitors your FBA inventory levels and automatically moves stock from AWD when levels drop
• Multi-channel fulfillment — Use one AWD inventory pool to serve both Amazon.com orders and sales on other platforms
• No peak season surcharges — Unlike FBA storage which increases in Q4, AWD maintains consistent rates year-round

Seller Impact

• Calculate AWD vs FBA storage costs — Compare your current monthly FBA storage fees (check September-December aged inventory charges) against AWD rates for products you stock 3+ months ahead
• Ship first bulk order — Send 500-1,000 units of a fast-moving product to AWD and let Amazon handle FBA replenishment for 60-90 days to test the workflow
• Stage Q4 inventory early — Send Black Friday and holiday inventory to AWD by July-August to avoid October-December FBA storage surcharges (which run 3x higher than off-peak)
• Consolidate overseas shipments — Route container shipments from China/India directly to AWD facilities instead of splitting across 6-8 FBA warehouses

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Source: sellercentral.amazon.com