Amazon Warehousing and Distribution (AWD)

Amazon Warehousing and Distribution (AWD) is a low-cost, upstream bulk storage service that allows sellers to store inventory in Amazon-managed facilities.

What is Amazon Warehousing and Distribution (AWD)?

Amazon Warehousing and Distribution (AWD) is Amazon’s bulk storage and upstream inventory distribution service for sellers. It lets you send inventory into Amazon’s distribution network before it is needed for customer orders, store it at lower-cost bulk-storage rates, and then have Amazon move that inventory where it needs to go—most notably into FBA when stock runs low. Amazon also describes AWD as supporting distribution to channels beyond Amazon in some workflows. 

What is Amazon Warehousing and Distribution (AWD) used for?

Amazon Warehousing and Distribution (AWD) is used to store your bulk inventory in Amazon’s network before it moves into FBA or other distribution channels. Sellers use it as a reserve stock layer to reduce storage costs, prevent stockouts, and automate replenishment into FBA. In simple terms, AWD stores and stages inventory, while FBA fulfills customer orders. It helps sellers stay in stock without manually managing every replenishment cycle.

What are the core features and benefits of the program?

The program was designed to solve common seller logistics challenges—such as insufficient storage, unsteady inventory flow, and lack of end-to-end visibility. Key benefits include:

• Low-Cost Storage: Significantly lower monthly storage fees per cubic foot compared to traditional fulfillment centers.

• Auto-Replenishment: The system automatically monitors and replenishes Prime-ready FBA centers, preventing stockouts and keeping your items active.

• No Peak Fees: Offers consistent, pay-as-you-go pricing with no seasonal surcharges during the holidays.

• Eliminates Storage Limits: Removes Seller Storage Quantity Limits (SSQL) for participating items.

• Reduced Placement Fees: Utilizing this service covers FBA inbound placement, meaning there is no separate charge for this step.

• Multi-Channel Distribution (MCD): From a single pool of inventory, you can distribute to the Amazon store, your own website, brick-and-mortar stores, or external 3PLs (like Walmart Fulfillment Services).

How does the AWD system actually work?

AWD fully integrates with your existing Seller Central supply chain services. The workflow includes:

1. Ship: Send bulk, palletized inventory via Amazon-managed transportation directly to the upstream facilities.

2. Store: Items are held securely in low-cost, long-term storage.

3. Replenish: The system automatically flows inventory into FBA fulfillment centers based on algorithmic demand.

4. Distribute: You can route inventory to non-Amazon sales channels using the MCD feature.

How to access Amazon Warehousing and Distribution (AWD)?

Access to AWD is managed inside Seller Central and depends on your account permissions. Primary account holders can grant user access and reporting permissions, but the exact navigation may vary as Amazon updates Seller Central. For most sellers, the more useful question is whether they can access AWD at all and whether their products are eligible for the program.

How do I enroll in AWD and start sending shipments?

There is no fee to enroll in AWD, and sellers are charged when they send inventory to AWD facilities. To start using the service, sellers access AWD in Seller Central, review eligibility requirements, and create shipments into the program. By participating, you agree to the terms and conditions. To get started:

• Go to the Inventory drop-down menu and select Warehousing and distribution.

• Navigate to the Manage service tab to create and send shipments.

• Note: You are only charged once you successfully send inventory to the facilities.

What are the eligibility requirements for AWD?

AWD is available for a variety of FBA products, but Amazon validates eligibility when you create shipments. Not every ASIN qualifies, so sellers should verify product eligibility in Seller Central before planning inbound shipments.

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What are the disadvantages or important limitations to consider?

Disadvantages of Amazon Warehousing and Distribution (AWD) are: 

• AWD is not the same as FBA. It is designed for upstream bulk storage and distribution, while FBA handles picking, packing, and delivery for customer orders.

• Capacity Constraints: Because of high demand, the network occasionally faces capacity issues, which may temporarily affect a seller's ability to receive inbound inventory.

• Product Eligibility: Not every single item type qualifies for the program.

Who can benefit from using this service, and when?

Any third-party seller struggling with high holiday storage costs, FBA capacity limits, or complicated multi-channel logistics. It is especially beneficial when preparing for peak seasons, allowing you to secure bulk inventory stateside without paying premium fulfillment center storage rates.