What AWD Is
Amazon Warehousing and Distribution is a bulk storage and distribution service that sits upstream of FBA. Instead of sending all your stock directly to FBA fulfilment centres (where storage fees are higher), you send bulk inventory to AWD facilities where Amazon stores it at lower rates. When your FBA inventory needs replenishing, Amazon automatically transfers stock from AWD to the appropriate fulfilment centres.
How It Differs from Standard FBA Storage
Standard FBA storage fees vary by time of year and increase significantly during Q4. AWD offers more predictable, generally lower storage rates because it is designed for bulk, longer-term storage. Think of AWD as your warehouse and FBA fulfilment centres as your shop floor — you keep your bulk stock in the warehouse and move items to the shop floor as needed.
The key difference is that stock in AWD is not immediately available for customer orders. There is a transfer time between AWD and FBA fulfilment centres, typically a few days. This means you need to plan your inventory flow and ensure AWD transfers happen before your FBA stock runs out.
Who Benefits Most
AWD is most valuable for sellers who buy large quantities of stock at once (perhaps taking advantage of bulk pricing from suppliers) but do not want to pay premium FBA storage fees on the entire quantity. It is also useful during Q4 when FBA storage fees spike — keeping excess stock in AWD and drip-feeding it to FBA can save significant money.
Sellers with seasonal products benefit too. You can store off-season inventory in AWD at low rates and transfer it to FBA as the selling season approaches.
How to Use AWD
AWD is managed through Seller Central. You create shipments to AWD facilities just as you would for FBA, but the destination is an AWD location. Once your stock arrives, Amazon handles the storage. You can set up automatic replenishment rules that transfer stock to FBA when your fulfilment centre inventory drops below a threshold, or you can trigger transfers manually.
Cost Comparison
AWD storage fees are per cubic foot per month and are generally lower than standard FBA storage fees, especially during peak season. However, you also pay for the transfer from AWD to FBA, so factor this into your cost calculations. The savings are most significant when you are storing large volumes for extended periods and during the expensive Q4 storage season.
Run the numbers for your specific inventory to determine whether AWD saves money compared to sending everything directly to FBA or using a third-party warehouse for overflow storage.