Overview

Amazon Warehousing and Distribution (AWD) is a bulk storage and logistics program designed to help FBA sellers lower their fulfillment costs across the US marketplace. Available to any active FBA seller with no enrollment fee, AWD eliminates separate inventory placement charges and peak season surcharges — two expenses that frequently catch sellers off guard. For those managing high-volume inventory or preparing for Q4, the program offers a streamlined alternative to standard FBA storage.

What AWD Actually Does

AWD functions as an upstream storage layer between your supplier and Amazon's fulfillment centers. Instead of shipping inventory directly to individual FBA warehouses — and dealing with the placement fees and capacity limits that come with it — sellers send bulk shipments to AWD facilities. From there, Amazon handles the distribution of products to the appropriate fulfillment centers nationwide.

The service essentially consolidates several logistics steps into one managed process. For sellers who have bumped up against FBA capacity limits or watched their margins shrink under mounting storage fees, AWD provides a buffer that keeps excess inventory stored affordably while ensuring fulfillment centers stay stocked.

Key Features

• Bundled inventory placement — AWD includes the cost of moving inventory from its warehouses to FBA fulfillment centers, removing the separate placement fees that apply when shipping to FBA directly.
• Automated replenishment — Amazon monitors stock levels at fulfillment centers and automatically ships inventory from AWD when levels drop, reducing stockout risk without manual intervention.
• No peak season surcharges — Unlike standard FBA storage, AWD maintains flat pricing through Q4, allowing sellers to pre-position holiday inventory without the steep seasonal fee increases.
• Multi-channel distribution — Sellers can maintain a single inventory pool that serves Amazon.com orders alongside other sales channels, eliminating the need to split stock across separate warehouses.
• Partnered carrier integration — The service supports Amazon's partnered carrier program, simplifying bulk shipments into AWD facilities.