Amazon Warehousing & Distribution Launches West Coast Region With 25% Discount on Processing Fees
Amazon Warehousing & Distribution is launching new West Coast distribution centers with a 25% discount on inbound processing fees for qualifying palletized and floor-loaded shipments through December 2026.
Overview
Amazon Warehousing & Distribution (AWD) is expanding its fulfillment network with new distribution centers on the West Coast, designated as the "Palletizable (US)" region within Seller Central. This launch comes with a limited-time promotional discount of 25% on inbound processing fees for qualifying shipments received between January 1, 2025, and December 31, 2026, giving sellers an incentive to route eligible inventory through these new facilities.
Key Points / What Sellers Need to Know
- New West Coast capacity — AWD is opening distribution centers on the West Coast designed to handle large shipments more efficiently, expanding sellers' options for inventory placement closer to western U.S. customers.
- 25% processing fee discount — Qualifying shipments received at the new Palletizable (US) region facilities receive a significant reduction on inbound processing fees during the promotion period.
- Two-tier pricing schedule — Shipments received through February 14, 2026, are charged $1.00 per box for inbound processing. Starting February 15, 2026, through December 31, 2026, the rate increases slightly to $1.05 per box.
- Strict shipment requirements — The promotion only applies to single-SKU pallets with a maximum height of 60 inches, or floor-loaded shipments containing no more than 10 SKUs and no fewer than 200 boxes per shipment.
- Non-qualifying penalty rate — Shipments that fail to meet the promotional criteria or don't match shipments created online will be charged $2.50 per box, more than double the promotional rate.
How the Promotion Works
Sellers who want to take advantage of this offer need to create shipments directed to the AWD Palletizable (US) West Coast region and ensure their inventory meets the eligibility requirements. The promotional inbound processing fee is charged after Amazon receives the qualifying shipment at one of the new facilities. The fee is deducted directly from the seller's disbursement account once the charge is posted, and the promotional discount will appear on the monthly processing fee report in Seller Central.
It is important to note that Amazon may reassign shipments to a different region due to capacity constraints or carrier limitations. If your shipment gets redirected, it will not qualify for the promotional pricing. Sellers will be notified of any region changes during step two of the shipment creation workflow, so it is worth paying attention during that process before finalizing.
Analysis & Recommendations
Why This Matters
Sellers using AWD for large-volume shipments can reduce inbound processing costs significantly by routing qualifying inventory to the new West Coast facilities. The two-year promotion window gives sellers time to adjust logistics strategies.
Key Takeaways
- AWD West Coast inbound processing fees drop to $1.00-$1.05 per box through December 2026, versus $2.50 for non-qualifying shipments
- Only single-SKU pallets (max 60 inches) or floor-loaded shipments (max 10 SKUs, min 200 boxes) qualify
- Amazon may reassign shipments to other regions due to capacity, disqualifying them from the promotion
- The discount is applied automatically upon receipt and appears on the monthly processing fee report
Recommended Actions
- →Review your AWD shipment profiles to identify SKUs that meet the single-SKU pallet or floor-loaded requirements
- →Monitor shipment creation workflow step 2 for any region reassignment notifications before finalizing shipments
- →Compare the promotional per-box rate against your current AWD costs to calculate potential savings for your catalog
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