Overview

Amazon Warehousing and Distribution (AWD) lets FBA sellers store bulk inventory in Amazon‑run warehouses before the stock is sent to regular fulfillment centers. The service is designed to ease FBA capacity caps and lower long‑term storage fees, making it a cost‑saving option for sellers with large or seasonal inventories. Sellers who adopt AWD can keep inventory inside Amazon’s network while avoiding the penalties that come with traditional FBA storage.

Key Points

• Reduced storage fees — AWD charges a lower per‑cubic‑foot rate than standard FBA, especially for items that sit in storage beyond the 90‑day threshold.
• Near‑unlimited space — Unlike the strict inbound limits that apply to individual fulfillment centers, AWD offers virtually unlimited bulk capacity, allowing sellers to ship full containers without worrying about slot restrictions.
• Automated replenishment — Amazon monitors sales velocity and automatically moves stock from AWD to the nearest fulfillment center, eliminating the need for manual restock orders.
• Single‑point inbound — Sellers ship one consolidated pallet to an AWD location instead of splitting cartons across multiple FBA sites, simplifying the inbound logistics chain.
• Eligibility filtering — Only ASINs that meet Amazon’s size, weight, and category criteria appear in the AWD selection screen, ensuring that unsuitable products are excluded automatically.
• Partnered carrier discounts — When sellers opt for Amazon‑partnered carriers, they receive negotiated freight rates that are typically lower than standard third‑party quotes.

How Amazon Warehousing and Distribution Works

1. Select eligible SKUs — In Seller Central’s “Send to Amazon” workflow, the system displays only the products that qualify for AWD. For example, a seller of 500‑unit 12‑oz coffee mugs sees those SKUs highlighted, while oversized furniture items are omitted.
2. Create a bulk shipping plan — The seller chooses the “upstream storage” option, enters the total quantity (e.g., 10 pallets of 200 units each), and the system generates a single destination address for the nearest AWD facility.