Article

What is Amazon Warehousing and Distribution (AWD)? Streamline Logistics & Operations on Amazon

What is Amazon Warehousing and Distribution (AWD)? Streamline Logistics & Operations on Amazon
Table of Contents

What is Amazon AWD?

What are the benefits of Amazon Warehousing and Distribution?

How much does Amazon Warehousing and Distribution cost?

How to enroll in Amazon Warehousing and Distribution

Amazon Warehousing and Distribution represents a significant leap forward in supply chain management solutions provided by the ecommerce giant. 

As businesses increasingly turn to multiple ecommerce platforms to reach new and existing customers, efficient and innovative warehousing and distribution systems are becoming crucial. 

In this article, we’ll dive into what Amazon AWD is, how it functions, its benefits, and the impact it has on businesses looking to streamline their operations and enhance their logistics capabilities.

What is Amazon AWD?

Amazon AWD is a low-cost bulk inventory storage and distribution solution designed for long-term inventory storage, and distribution to Amazon fulfillment centers and other non-Amazon channels.

Proper inventory management is crucial for any ecommerce business. AWD helps Amazon sellers and other ecommerce businesses properly store and replenish their inventory so each platform is always in stock. 

Amazon Inventory Management 2024 Guide

What are the benefits of Amazon Warehousing and Distribution?

Some businesses don’t have their own warehousing capabilities — making storing new inventory that is awaiting FBA or another channel, a challenge. 

Let’s go over the benefits of using AWD for your Amazon business. 

  • No FBA inbound placement service fee. On March 1, 2024, Amazon implemented a new FBA inbound placement service fee, which increased fees for splitting up shipments to FBA. If you use AWD, there will be no FBA inbound placement service fee.
  • Automatic FBA inventory replenishment. AWD helps keep your FBA inventory in stock at all times. When you turn on auto-replenishment, AWD will ship inventory to an Amazon fulfillment center when your stock gets low. 
  • Multi-channel distribution. Keep all of your inventory with AWD and have Amazon distribute that inventory between FBA and other distribution channels.
  • Low-cost bulk storage. Amazon AWD’s pricing is very transparent and is a low-cost bulk storage solution for Amazon and ecommerce businesses who need a place to store their inventory. 

How much does Amazon Warehousing and Distribution cost?

Amazon Warehousing and Distribution (AWD) has two tiers of charges; let’s go over what they are. 

You will pay the base rate if you are using your own transportation/carrier service for shipments sent to AWD.

You pay the integrated rates if you use the Amazon Global Logistics or Partnered Carrier Program as the transportation/carrier service provider to AWD. 

When you use AGL or PCP, you will save 25% on AWD storage and 15% on processing and transportation, so it is clearly beneficial to use one of Amazon’s partnered carriers to send your inventory to AWD.

Amazon Global Logistics, Partnered Carrier Program, and Amazon Warehousing and Distribution are all a part of Supply Chain by Amazon, a suite of programs that gets your products from your factory to your customer. 

How to enroll in Amazon Warehousing and Distribution

If you want to start using AWD for your storage and FBA inventory replenishment, here is how to enroll. 

To enroll, visit the AWD page in Seller Central and click “Enroll” at the top of the page. You can get to this page by going to the menu > Growth > Explore Programs > Amazon Warehousing and Distribution.

On this page, you can also learn more about the service and see the FAQs. Once you are enrolled in the program, this is what your page will look like. 

Here, you can create shipments, view your inventory, move inventory, and track replenishments. 

Amazon makes it very easy to ship to AWD and to manage your inventory there. 

Will you use AWD for your Amazon business?

Amazon Warehousing and Distribution is a great low-cost solution for your inventory storage and replenishment needs. With this program, sellers can have their FBA inventory automatically sent to FBA fulfillment centers when their stock is running low. 

Do you have more questions about AWD? Let us know in the comments.

Learn how you can use Jungle Scout to start, run, and grow your Amazon business.

Brian Connolly is an Amazon seller, ecommerce expert, and writer for Jungle Scout. He lives in the New Jersey Shore area with his wife and cat. When he isn’t writing advice online for aspiring and experienced Amazon sellers for Jungle Scout, he spends his free time boating, fishing, and selling boating-themed items on his Amazon business.

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