Amazon Warehousing and Distribution (AWD): Terms, Fees, and Reimbursement Policies Sellers Must Know
Covers Amazon Warehousing and Distribution (AWD) terms including shipment requirements, fee structures (storage, processing, transportation), packaging obligations, and reimbursement eligibility criteria for lost inventory and dimension-based fee disputes.
Overview
Amazon Warehousing and Distribution (AWD) is Amazon's upstream bulk storage and distribution service, designed to offer sellers lower-cost inventory storage outside of standard FBA fulfillment centers. Understanding AWD's terms and conditions is essential for any seller considering the program, as they govern everything from shipment requirements and fee structures to reimbursement eligibility. These terms supplement Amazon's broader Business Solutions Agreement and carry specific compliance obligations that sellers must follow to avoid lost inventory or unexpected charges.
Key Points / What Sellers Need to Know
- Product eligibility is restricted and subject to change — Not all products qualify for AWD. Amazon maintains a separate set of product eligibility requirements that can be updated at any time, so sellers should verify their inventory qualifies before creating shipments.
- AWD and FBA shipments must remain completely separate — Sellers cannot mix FBA and AWD inventory in the same truckload, send FBA shipments to AWD sites, or route AWD shipments to FBA fulfillment centers. Violations can result in lost or rejected inventory with no recourse.
- Three distinct fee types apply — AWD charges storage fees (monthly, per cubic foot), processing fees (for inbound and outbound handling), and transportation fees (for moving inventory to fulfillment centers or other channels).
- Unit labeling is the seller's responsibility — AWD does not provide labeling or relabeling services. Sellers must ensure every unit meets the destination channel's labeling requirements before shipping.
- Reimbursement claims have strict eligibility criteria — Multiple conditions must be met for a unit to qualify for reimbursement if lost or damaged, and claims for fee overcharges based on incorrect box dimensions must be filed within 90 days.
Shipment and Routing Requirements
AWD shipments must comply with Amazon's standard FBA shipping and routing requirements, with the notable exception that FBA box labels are not required. Instead, sellers must follow AWD-specific box labeling guidelines. Only shipment types explicitly listed on the AWD program page are supported, and Amazon disclaims responsibility for any inventory lost or rejected when sellers use unsupported shipping methods. Importantly, AWD sites are exclusively for AWD inventory — sellers who accidentally route FBA shipments to an AWD facility or vice versa risk losing that inventory entirely, as Amazon will not take responsibility for misrouted goods.
Analysis & Recommendations
Why This Matters
Sellers using AWD need to understand strict shipment separation rules, labeling responsibilities, and reimbursement conditions to avoid lost inventory and unexpected charges. Non-compliance can result in Amazon disclaiming responsibility for misrouted or improperly prepared goods.
Key Takeaways
- AWD and FBA shipments must never be mixed in the same truckload or sent to the wrong facility type
- AWD does not provide unit labeling services — sellers must label all units before shipping
- Reimbursement for lost or damaged inventory requires meeting multiple strict eligibility conditions simultaneously
- Fee disputes over incorrect box dimensions must be filed within 90 days and Amazon's measurements override the seller's
Recommended Actions
- →Review AWD product eligibility requirements before creating any new AWD shipments to confirm your inventory qualifies
- →Implement a logistics checklist that enforces strict separation of AWD and FBA shipments across your supply chain
- →Set a recurring monthly calendar reminder to audit AWD fee reports for dimension accuracy and file disputes within the 90-day window
Comments
Join the discussion
Log in or create an account to share your thoughts on this update.
No comments yet. Be the first to share your thoughts!