1. What is Amazon AWD (Amazon Warehousing & Distribution)?

AWD stands for Amazon Warehousing & Distribution. It is a new warehouse program built by Amazon to provide bulk or long-term inventory storage and distribution services to Amazon sellers.

With AWD, sellers can join the giant warehousing and distribution network of Amazon. It opens possibilities to solve troublesome supply chain issues.

In 2023, AWD will be expanded to an extent where sellers can send their inventory to "any location" in the hope of further facilitating customer fulfillment and logistics networks of Amazon.

2. What is the Purpose of AWD (Amazon Warehousing & Distribution)?

Amazon has introduced such a service to help Amazon sellers relieve the headaches brought by upstream storage and distribution operations, including exorbitant storage costs, complicated pricing structures, and limited storage capacity.

With AWD, sellers have access to unlimited space for storing bulk or long-term inventory, which usually means slower movement and higher rates. Besides, AWD services feature high-level automation, allowing Amazon sellers to manage inventory online and satisfy the downstream customer demands with more ease.

3. What is the Relationship Between Amazon Warehousing & Distribution (AWD) and Fulfillment by Amazon (FBA)?

Under FBA, Amazon sellers need to figure out their own ways to send products to Amazon Fulfillment Centers, where orders will be picked, packed, and shipped to customers by Amazon. While some sellers may have requirements for inventory storage before using FBA, and this is the right time to utilize AWD: sending products to Amazon Distribution Centers for warehousing.

With AWD, Amazon sellers themselves do not have to worry about upstream warehousing and distribution. AWD program offers Amazon Distribution Centers, where sellers can store and automatically distribute goods. Moreover, automated replenishment is transformed into a reality. When the seller runs low on their stock, they can make Amazon transfer the products from the Amazon Warehousing and Distribution locations to Amazon Fulfillment Centers with a couple of clicks. The situation of stockouts is effectively prevented.

4. How Would Amazon Sellers Benefit from Amazon AWD?

● AWD program streamlines and automates the process. Amazon sellers can send their inventory in bulk to Amazon Distribution Centers with one click.

● The "pay-as-you-go" fee structure applied by Amazon is simple enough. Sellers only have to pay for the space they use, so the storage costs can be hugely reduced.

● The storage quantity limits remain inevitable under FBA. In contrast, the AWD program offers unlimited storage space thanks to the overbuilt warehouses of Amazon.

● AWD can meet long-term storage demands without confusing sellers with the long-term contracts.

● AWD smoothly integrates the upstream inventory storage operations with the order fulfillment.

● Sellers have access to consolidate global inventory into one pool, which can be managed on the Amazon website of Seller Central.