Overview

Amazon Warehousing and Distribution (AWD) is Amazon’s bulk‑storage and upstream logistics service that lets sellers keep inventory in Amazon‑controlled warehouses before it is sent to Fulfillment by Amazon (FBA) centers. The program applies three distinct fee types—storage, processing, and transportation—and sellers need to understand each component to determine whether AWD aligns with their cost structure and supply‑chain goals.

Key Points

• Three fee categories — AWD charges are split into storage, processing, and transportation fees, each calculated on a different metric such as volume, unit count, or weight.
• Storage fees are volume‑based — Sellers are billed for the cubic footage their stock occupies; rates can rise during peak seasons like the holiday quarter.
• Processing fees cover handling activities — Fees are applied when Amazon receives, organizes, labels, or bundles inventory inside an AWD facility.
• Transportation fees reflect movement — When Amazon ships inventory from an AWD warehouse to an FBA center, fees are based on the shipment’s weight and the distance traveled.
• Seller Central reports provide transparency — Detailed fee and inventory‑movement reports let sellers track every charge and pinpoint cost‑saving opportunities.

How AWD Fees Work

1. Storage fee calculation — Amazon measures the space your pallets or cases occupy in cubic feet.

   • Example: A seller stores 15 pallets that together take up 120 cubic feet for a month; Amazon applies the monthly storage rate per cubic foot to that 120‑cubic‑foot total.

2. Processing fee assessment — Every handling action—receiving inbound pallets, sorting units, applying Amazon barcodes, or performing prep services—triggers a per‑unit or per‑hour charge.

   • Example: A seller ships 2,000 units that require labeling; Amazon adds a labeling fee for each of the 2,000 units plus a small handling fee for the overall receipt of the shipment.