How Amazon AWD is Saving Sellers Money and Simplifying FBA Inventory Management

Amazon Warehousing and Distribution (AWD) is revolutionizing inventory management for Fulfillment by Amazon (FBA) sellers by offering cost-effective storage solutions and streamlined operations. Here's how AWD is helping sellers save money and manage their FBA inventory more efficiently:

1. Cost Savings with Low-Cost Bulk Storage

AWD provides a low-cost bulk storage option, charging $0.48 per cubic foot per month, significantly lower than FBA's standard storage fees, especially during peak seasons. For instance, during the holiday period (October through December), FBA storage fees can reach $2.40 per cubic foot per month, making AWD's consistent pricing an economical alternative. 

2. Elimination of Inbound Placement Service Fees

By utilizing AWD, sellers can avoid the FBA inbound placement service fees. AWD's pricing structure covers the cost of distributing inventory to Amazon's fulfillment centers, eliminating separate charges for this service.

3. Auto-Replenishment for Optimal Inventory Levels

AWD's auto-replenishment feature ensures that FBA inventory levels are consistently maintained. This system monitors stock levels and automatically sends inventory from AWD storage to fulfillment centers as needed, reducing the risk of stockouts and helping sellers avoid potential lost sales.

4. Simplified Multi-Channel Distribution

Beyond replenishing Amazon's fulfillment centers, AWD supports distribution to other sales channels, including wholesalers and brick-and-mortar stores. This flexibility allows sellers to manage a single pool of inventory across multiple platforms, simplifying logistics and potentially reducing overall storage and transportation costs. 

5. Integrated Transportation Savings

Sellers who use Amazon Global Logistics (AGL) or the Amazon Partnered Carrier Program (PCP) to send inventory to AWD can benefit from additional savings. Specifically, they can save 25% on AWD storage fees and 15% on processing and transportation costs, further enhancing cost efficiency. 

By leveraging AWD, Amazon sellers can achieve significant cost savings and streamline their inventory management processes, leading to a more efficient and profitable operation.