What is Amazon AWD (Warehousing and Distribution): Beginners Guide
In the fast-changing e-commerce world, good Amazon fulfillment depends a lot on smooth inventory management and a strong supply chain. Amazon Warehousing and Distribution (AWD) stands out as a key help for businesses that want to improve their logistics and better their fulfillment work.
Join us in this article as we explore the world of Amazon AWD, uncovering its functions, benefits, and the significant impact it has on businesses aiming to streamline operations and boost logistics efficiency.
What is Amazon AWD?
Amazon Warehousing & Distribution (AWD) is a third-party logistics solution that stores and ships your products using the Amazon fulfillment network, regardless of whether they’re sold on Amazon.
Benefits of Amazon Warehousing and Distribution
1. Low-cost storage
Amazon introduced a new FBA inbound placement service fee, raising costs for splitting shipments to FBA. However, using Amazon Warehousing & Distribution (AWD) eliminates this fee if your auto-replenishment ratio is 70% or more.
As of March 1, 2024, there are two tiers of charges:
1. Base Rate – when you use your own transportation or carrier service for shipments to AWD
2. Integrated Rate – when you opt for Amazon Global Logistics, SEND, or the Partnered Carrier program for transportation or carrier services.
* Note: To qualify for integrated rates, you need to have sent at least one shipment to AWD using Amazon Global Logistics, SEND, or the Partnered Carrier Program within the last four months.
Amazon Warehousing and Distribution charges | Base rates | Integrated rates | % off from base rate |
AWD storage fee | $0.48/cu ft/month | $0.36/cu ft/month | 25% |
AWD processing fee | $2.50/box | $2.13/box | 15% |
AWD transportation fee | $1.00/cu ft. | $0.85/cu ft. | 15% |
Choosing Amazon Global Logistics (AGL) or the Partnered Carrier Program (PCP) also helps you save 25% on storage and 15% on processing and shipping costs with AWD, so it’s clearly advantageous to refer to Amazon’s partnered carriers when shipping your inventory to AWD.
2. Inventory auto-replenishment
When you enable auto-replenishment, Amazon Warehousing & Distribution takes charge of managing your inventory replenishment to FBA. It uses advanced algorithms to determine the optimal FBA inventory level for each SKU, automatically replenishing stock whenever it falls below the set threshold (10-14 days after submission)
3. Speed and reliability
Your inventory shows up in AWD within 2 to 4 days after it arrives. FBA gets it 10 to 14 days after you ask for restocking.
4. Multi-channel distribution
AWD refills stock for FBA and other places, so you can use one group of items to reach buyers both on and off Amazon.
Amazon Warehousing and Distribution Product Eligibility
Amazon Warehousing and Distribuion is available for a variety of FBA products, yet some of them fall under the restrictions. Here’s a table of such items provided by Amazon:
| Eligible | Not eligible at this time |
|---|---|
| Apparel (only single ASIN per box) | Amazon devices |
| Automotive and Powersports | Gift cards |
| Baby Products | Grocery |
| Beauty | High-value products |
| Books | Jewelry |
| Camera and Photo | Watches |
| Collectible Coins | |
| Consumer Electronics | |
| Entertainment Collectibles | |
| Fine Art | |
| Health and Personal Care | |
| Home and Garden | |
| Independent Design | |
| Industrial and Scientific | |
| Kindle Accessories and Amazon Fire TV Accessories | |
| Major Appliances | |
| Music and DVD | |
| Musical Instruments | |
| Office Products | |
| Outdoors | |
| Personal Computers | |
| Pet Supplies | |
| Shoes | |
| Software | |
| Sports | |
| Sports Collectibles | |
| Tools and Home Improvement | |
| Toys and Games | |
| Videos, DVDs, and Blu-ray | |
| Video Games | |
| Conveyable boxes: Boxes that are smaller than 25 inches on any side and that weigh 50 lb or less. | Non-conveyable boxes: Boxes that are larger than 25 inches on any side and that weigh more than 50 lb. |
| Conveyable Non sortable ASINs: Products that are 25 inches long x 25 inches wide x 25 inches high or smaller, and that weigh 49 lb or less. | Oversize or heavy and bulky ASINs: Products that are larger than 25 inches long x 25 inches wide x 25 inches high, and that weigh more than 49 lb. |
| Non-perishables: Products with no expiration date. | Perishables: Products with an expiration date. |
| Any product that is not considered a dangerous good. | Dangerous goods and any hazardous material prohibited by FBA. |
In addition to product eligibility, there are other FBA requirements you need to consider before you can ship your inventory to AWD. You can read more on that on This official Amazon page.
How to enroll in Amazon Warehousing and Distribution
Step 1:
Visit the Amazon Warehousing and Distribution page in Seller Central.
Step 2:
Choose inventory to send
- Select your “ship from” address and preferred “ship to” region. Use the “Change Ship to” option to adjust the destination.
- Visit the program page and click “Create shipment” to start the Send to Amazon Warehousing and Distribution workflow.
- Add inventory by selecting from your available SKUs list or using the File upload option.
Step 3:
Choose your shipping method depending on the shipment origin
Outside US:
- Amazon Global Logistics
- Amazon Global Selling SEND
- Use your own carrier
Within US:
- Amazon Partnered Carrier (LTL/FTL)
- Seller Managed Carrier
Step 4:
Print Box Labels
You will receive A4-sized SSCC labels to attach to the outside of each box sent to the AWD DC. This is required for all shipments, no matter their origin or shipping method.
Step 5:
Confirm carrier
Step 6:
Print pallet labels
* Only applies if you’ve picked Amazon Partnered Carrier as your shipping choice
Step 7:
Track your shipment
* Only applies if you’ve chosen Amazon Partnered Carrier as a carrier option. Amazon will generate the carrier tracking ID which you can then use to view your shipment details (shipment ID, Amazon Reference ID) and carrier details.
Final Thoughts
AWD offers many benefits that FBA doesn’t, making it a better option for some sellers. How can you tell if it’s the right fit for you? Think about using Amazon AWD if you’re facing any of these issues:
1. Shipment delays and long delivery times.
2. Frequent stock shortages and poor forecasting.
3. Limited storage space at your current facilities.
4. A complex network of supply chain partners that’s hard to manage.
5. Fluctuating storage costs that make fee prediction tough.
Table Of Glossary
FAQ
AWD has simple, pay-as-you-go pricing with no additional costs for the holiday season.
No. You can’t move inventory from FBA to AWD because items are stored differently in our fulfillment and distribution centers. In FBA fulfillment centers, items are optimized for picking, packing, and delivery. In AWD facilities, inventory is optimized for bulk storage.
