What is Amazon Warehousing and Distribution (AWD)

Amazon Warehousing and Distribution (AWD) is a helpful solution for sellers looking to simplify their inventory management on the world’s largest ecommerce marketplace. 

It offers a cost-effective way to store and distribute products using Amazon’s logistics network. This program takes away the stress of handling bulk inventory and ensures that your stock is always ready for fulfillment.

In this blog, we’ll explain everything you need to know about AWD, from how it works, its key features, benefits, etc., to how you can easily access and start using the program.

Let’s start, shall we? 

Glossary  

Before we dive into the nitty gritty of AWD, it’s important to familiarize yourself with some technical terms because they will be used further ahead in the blog.

• Amazon Partnered Carrier Program (PCP): Amazon’s program that connects sellers with partnered carriers at discounted rates for inbound shipments to Amazon facilities.
• Base Rate: The standard rate sellers pay for AWD services if they handle their own transportation to Amazon’s facilities. This includes costs for storage, processing, and transportation.
• FNSKU (Fulfillment Network Stock Keeping Unit): Amazon’s unique ID for tracking each product in its fulfillment network, essential for inventory management within Amazon’s facilities.
• Integrated Rate: Discounted rates offered to sellers who ship inventory to AWD using Amazon’s logistics services, including Amazon Global Logistics, SEND (Amazon’s program which allows sellers to ship eligible air cargo from China to Amazon’s fulfillment centers in Australia), or the Partnered Carrier Program.
• Replenishment Order: An order placed to transfer stock from AWD storage to Amazon’s fulfillment centers or other sales channels. It helps maintain consistent stock levels.
• Serialized Ship Container Code (SSCC): A unique, scannable label placed on each box sent to AWD. This label helps track shipments accurately, ensuring each box reaches its intended destination.
• Third-Party Logistics (3PL): Independent logistics providers offering flexible storage, order fulfillment, and other services to sellers. 3PL providers may support multiple sales channels beyond Amazon.
• Transportation Fee: AWD’s charge for moving inventory from storage to other destinations, including Amazon fulfillment centers or other sales channels, calculated per cubic foot.
• Warehouse ID: A code representing the specific Amazon distribution center storing a seller’s inventory, important for tracking and managing stock within AWD.

What is Amazon Warehousing and Distribution? 

Amazon Warehousing and Distribution (AWD) is a third-party logistics service that offers affordable, bulk storage for your ecommerce inventory. 

It provides an efficient way to store products and automatically replenishes stock in Amazon’s fulfillment centers and other sales and distribution channels. This ensures that your products are always ready for quick delivery to customers.

Important Note: At this time, AWD is available only in the US.

In Amazon’s supply chain ecosystem, Amazon Warehousing and Distribution (AWD) integrates with:

• Buy with Prime: Extends Prime benefits to sellers’ websites.
• Amazon Global Logistics (AGL): Manages international shipping and customs.
• Partnered Carrier Program (PCP): Offers domestic shipping solutions.
• Fulfillment by Amazon (FBA): Oversees order fulfillment for Amazon-based sales.
• Multi-Channel Fulfillment (MCF): Fulfills orders from non-Amazon platforms.

How Does Amazon Warehousing and Distribution (AWD) Work?

Let’s now learn how AWD works:

Step 1: Inventory Pickup and Shipping

Sellers send products to AWD using Amazon Global Logistics (AGL) or the Partnered Carrier Program (PCP). These services handle shipping from manufacturing facilities to AWD, including customs and transportation.

Step 2: Storage in AWD

Once products arrive, they are stored in Amazon’s distribution centers at a low cost. As soon as they are received, they’re ready for sale and Prime shipping.

Step 3: Order Fulfillment

When a customer places an order, AWD restocks the fulfillment network. Amazon handles packing and shipping through Fulfillment by Amazon (FBA). Multi-Channel Fulfillment (MCF) is available for orders outside Amazon.

Step 4: Automatic Replenishment

AWD tracks inventory levels and automatically replenishes stock when needed. This helps sellers avoid manual tracking and keeps products ready for customers.

AWD makes managing and shipping inventory simple, keeping your products ready for sale across all channels.

Benefits of Amazon Warehousing and Distribution

1. Low-cost bulk storage helps sellers save on fulfillment expenses, with no separate charges for FBA inbound placement. This makes storing inventory more affordable.

Reduced logistics costs allow sellers to eliminate the expenses of maintaining their own warehouses. This leads to savings of up to 75% compared to traditional warehousing options.

2. Automatic replenishment ensures FBA inventory levels stay in check, preventing stockouts and keeping products available for customers.
3. Speed and reliability are guaranteed, with inventory visible within 2 to 4 days of arriving at AWD facilities and replenished to FBA within 10 to 14 days.
4. Multi-channel distribution enables sellers to manage a single pool of inventory that serves both Amazon and other sales channels like Shopify, or even other marketplaces. This makes it easier for them to reach a wider customer base.
5. Operational simplicity is achieved by integrating storage, distribution, and fulfillment into one service, eliminating the need to manage multiple third-party logistics providers.
6. Scalability allows sellers to adjust storage based on demand, making it easier to handle seasonal products or changes in business volume. 

Who Can Use AWD and When?  

1. High-Volume Sellers: AWD is great for sellers with large stock levels. It offers affordable bulk storage for easier inventory management.
2. FBA Sellers: For FBA users facing stock limits, AWD provides extra storage and helps avoid stockouts.
3. Multi-Channel Sellers: AWD supports Amazon sellers who also sell on other platforms, making it easier to manage all stock in one place.
4. Seasonal Businesses: With flexible storage, AWD adjusts to meet higher inventory needs during peak seasons.
5. Growing E-commerce Brands: The pay-as-you-go model works well for new and expanding brands looking for affordable logistics.
6. Non-Amazon Sellers: AWD also supports sales on other channels, letting sellers manage and distribute inventory from one central location. This benefits brands seeking simple logistics across multiple platforms.

Difference between AWD, FBA, and Third-Party Logistics (3PL)  

Here’s a breakdown of how Amazon Warehousing and Distribution (AWD), Fulfillment by Amazon (FBA), and Third-Party Logistics (3PL) differ from each other. Each offers distinct options for inventory storage, order fulfillment, and customer service. 

While all of these are independent Amazon offered programs or third party services, some of them can be used together as well. For example if you are an Amazon seller using FBA you can use AWD for affordable bulk storage. Similarly, while being an Amazon seller, you can also use 3PL.

This table summarizes the unique features of each:

Feature	AWD	FBA	3PL
Definition	Bulk storage via Amazon’s network	Complete fulfillment by Amazon	Logistics by independent providers
Primary Use	Long-term storage, seller-managed	End-to-end fulfillment, Prime eligibility	Customizable logistics across platforms
Storage	$0.48/cu ft (base), $0.36 (integrated)	From $0.87/cu ft, higher for long-term	$0.50 – $1.50/cu ft, variable
Fulfillment Cost	$2.50/box (base), $2.13 (integrated)	$3.22 and up, varies by size/weight	$3 – $6 per package, varies
Transportation	$1.00/cu ft (base), $0.85 (integrated)	Included in the fulfillment fee	Variable, based on carrier/service
Customer Service	Seller-managed	Amazon-managed	Varies and can include support
Returns	Seller-managed	Amazon-managed	Varies, some manage returns
Branding	Limited Amazon packaging	Amazon packaging only	Flexible, custom branding options
Ideal for	Sellers needing low-cost, bulk storage	Sellers desiring managed fulfillment & Prime	Businesses with varied logistics needs

How to Get Started With Amazon Warehousing and Distribution?

Before you begin with Amazon Warehousing and Distribution program ensure you meet the following prerequisites:

Prerequisites

Let’s now understand what you will require before starting with AWD.

Product Eligibility

Amazon has specific guidelines for products. And they have a list of eligible as well as non-eligible products. These include:

Eligible Products:

• Apparel (only single ASIN per box)
• Automotive and Powersports
• Baby Products
• Beauty
• Books
• Camera and Photo
• Collectible Coins
• Consumer Electronics
• Entertainment Collectibles
• Expiration dated products
• Fine Art
• Health and Personal Care
• Home and Garden
• Independent Design
• Industrial and Scientific
• Kindle Accessories and Amazon Fire TV Accessories
• Conveyable boxes: Boxes smaller than 25 inches on any side and weighing 50 lb or less
• Conveyable Non-Sortable ASINs: Products that are 25 inches x 25 inches x 25 inches or smaller and weigh 49 lb or less
• Perishables: Products with an expiration date
• Any product that is not considered dangerous goods

Not Eligible at This Time:

• 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
• Amazon devices
• Gift cards
• High-value products
• Jewelry
• Meltable products (heat-sensitive items like chocolate, gummies, wax-based products)
• Refrigerated goods
• Watches
• Non-conveyable boxes: Boxes larger than 25 inches on any side and weighing more than 50 lb
• Oversize or Heavy and Bulky ASINs: Products larger than 25 inches x 25 inches x 25 inches and weigh more than 49 lb
• Dangerous goods: Any hazardous material prohibited by FBA

FBA Requirements

In addition to the product eligibility criteria shared above, Amazon also validates from its side that your products meet the following FBA requirements: 

• Restricted Product Categories: Some categories may require pre-approval before listing. Make sure you meet the FBA guidelines for restricted categories.
• Stranded Inventory: Resolve any stranded inventory issues in fulfillment centers. You must fix any inactive or unsellable stock before sending it to AWD.
• FBA Barcodes: All products must have FBA barcodes to be tracked. You can either print and apply them yourself or have Amazon do it for a fee.
• Product Listing: Ensure that all Amazon product listings are valid and complete before sending inventory to AWD.
• Catalog Attributes: Confirm that all product details are accurate in the product catalog to avoid missing information.
• Seller Account Performance: If your seller account has any performance issues, they must be resolved before sending inventory to AWD.

Once your products meet these conditions, follow these steps to get started:

Step-by-Step Process To Get Started with Amazon Warehousing and Distribution:

Step 1: Log in to Seller Central

Log in to your Seller Central account, or sign up if you don’t have one.

Note: In case you are signing up as a new seller, Amazon recommends the professional selling plan for full access to AWD features.

Step 2: Enroll in AWD

• In Seller Central, go to “Growth,” then “Explore Programs,” and select “Amazon Warehousing and Distribution.” 
• Click “Enroll” at the top of the page. You can also access FAQs and more details here.

Step 3: Create and Send Shipments

After enrolling, visit the AWD section in Seller Central to create and track shipments. You can manage your inventory, move stock, and track replenishments to Amazon’s fulfillment network.

Grant Access to Users

The AWD tools are visible only to users with the necessary permissions. If you don’t have access, the primary account holder can grant it through the User Permissions page. Follow these steps:

1. Go to the Settings menu and select User Permissions.
2. Add a new user or select an existing user.
3. Click Add to global account or Manage global permissions to modify the user’s access.
4. Under Inventory, find Amazon Warehousing and Distribution and Global FBA Inventory. Choose from these permission levels:
   • None: No access to inventory information.
   • View and Edit: Users can view and take actions on inventory.
   • View Only: Users can only view inventory information.
5. Click Save Changes.

How to Send shipments to Amazon Warehousing and Distribution (AWD)?

Now, let’s understand the process through which you can send your shipments to AWD.

Step 1: Choose Inventory to Send

1. Select “Ship From” and “Ship To” Region.

Choose your “Ship from” address and pick your preferred “Ship to” region. You can adjust your destination region by clicking on the “Change Ship to” option.

Important: The assigned region will depend on the available capacity at the distribution center at the time your shipment is expected to arrive.

2. Create a Shipment
   Navigate to the AWD Program page and click “Create Shipment.” This will direct you to the “Send to Amazon Warehousing and Distribution” workflow.

3. Add Inventory
   You can add inventory by selecting from your available SKUs or by using the “File upload” option under the SKU selection method.

Important: A single shipment can include up to 150 unique SKUs. If shipping with Amazon Global Selling SEND, the limits are 600 boxes for shipments from China and 2400 boxes from Vietnam.

• Ensure that the expiration date of the products is at least 185 days in the future from the inbound shipment creation date for AWD eligibility.

4. Add Individual Units to a Workflow

• Select or create a packing template in “Packing details.” Enter the box configuration, units per box, and any prep instructions. 

Note: A single box can contain up to 150 units of the same SKU, and multiple boxes of the same SKU can be shipped.

• In “Information/action,” print SKU labels for labeling at the destination FBA center if requested. 
• Enter the box count in “Quantity to send.” 
• Click “Ready to send,” scroll down, and click “Confirm and continue.”

5. Add Inventory in Bulk Using a Template File

• Click “Generate and download template,” fill it with SKU data, and upload (maximum 150 rows). 
• Scroll down and confirm to proceed.

Step 2: Confirm Shipping

1. Review Destination and Shipping Method
   After entering box content information for each SKU, proceed to Step 2, where you can view your shipping destination details and select a shipping method to send your products to the AWD distribution center.

2. Shipping Options
   AWD now accepts Small Parcel Delivery (SPD), except in the East Coast region (SPD on the East Coast will be enabled soon). For domestic SPD, you can use an Amazon Partnered Carrier or your own carrier; international SPD can also be managed by your own carrier.

Important: Combining FBA and AWD shipments in the same truckload or sending SPD shipments to the East Coast can cause delays or rejections.

Option 1: Amazon Global Logistics

• Select Amazon Global Logistics in the shipping options.
• Choose the shipping mode, complete necessary fields, and click Update Shipping Cost to view charges.
• Enter any missing information under “Shipping parties and product description.”
• Accept terms, click Accept Charges, and Confirm Shipment to move to Step 3.

Note: Amazon Global Logistics does not deliver to South Central (Texas).

Option 2: Amazon Global Selling SEND

• For China, India, or Vietnam, select Amazon Global Selling SEND.
• Enter shipping mode, details, and click Get Shipping Cost.
• Fill in any additional fields, review terms, accept charges, and confirm your shipment.

Option 3: Use Your Own Carrier

• For domestic and international shipments, you can select a Non-Amazon Partnered Carrier.
• Choose the shipping date and method (Air, Ocean, Ground for SPD) and confirm charges.
• For pallet shipments, additional carrier confirmation is needed in Step 4.

Shipping Methods for Shipments Within the US

• Choose between Amazon Partnered Carrier or Seller Managed Carrier for either SPD or Less than Truckload (LTL) and Full Truckload (FTL).
• Select Small Parcel Delivery (SPD) as the shipping mode, choose UPS for Amazon Partnered Carrier, or select your own carrier from the dropdown list.
• Click Confirm Shipping Destination and proceed to Step 3.

Important Note: SPD is currently unavailable for the East Coast. Select the West Coast as the destination if sending SPD.

Step 3: Print Box Labels

1. Access Box Labels
   After confirming your shipment in Step 2, proceed to Step 3 to print labels for each box. You’ll receive Serialized Ship Container Code (SSCC) labels in A4 size, which are required on the outside of each box sent to the Amazon Warehousing and Distribution (AWD) Distribution Center.

2. Labeling Requirements

• SSCC labels are the only labels required on the outside of each box.

Important: Print the complete set of SSCC labels. Do not photocopy, reuse, or modify labels, as each box must have a unique label that matches the FNSKUs inside.

3. Proper Label Placement

• Place SSCC labels on a flat surface of each box. Ensure the barcode is not folded over edges or corners.
• Keep labels uncovered so they remain scannable and readable to prevent delays upon arrival at AWD.

Note on Pallet Labels

• Pallet Shipments: Pallet labels are only needed if using the Partnered Carrier Program (PCP). For other shipping methods, only SSCC box labels are necessary.

Additional Labeling for Customs

• If shipping internationally, additional labels required by customs can be added, but the SSCC label should remain fully visible.

Important: Failure to apply the correct SSCC labels can cause delays, rejections, or shipment blocking. Amazon is not responsible for issues caused by incorrect labeling.

Step 4: Confirm Carrier and Pallet Information

If you’re shipping inventory using either Amazon Partnered Carrier or Seller Managed Carrier, you’ll need to confirm carrier and pallet details in Step 4 after printing and applying box labels.

Option 1: Amazon Partnered Carrier

1. Select Amazon Partnered Carrier
   • Click Add Contact to enter your warehouse contact information. You can select an existing contact or add a new one for each shipment.

2. Review and Edit Pallet Configurations

• Review the pallet estimates for each shipment. Edit configurations if necessary to ensure the shipping cost estimates are accurate.

3. Confirm Freight Ready Date

• Set the Freight Ready Date for each shipment. In case you see greyed-out dates, that indicates unavailable capacity.

4. Select or Change the Carrier

• Amazon will default to the lowest-cost carrier, but you can choose another carrier by selecting Change Carrier. This opens a modal where you can filter by carrier name or shipping mode and view costs, modes, and transit times.

5. Confirm All Information

• Review all shipping cost estimates, then click Confirm All Carrier and Pallet Information to proceed to Step 5, which is for printing pallet labels (applicable only for Amazon Partnered Carrier shipments).

Option 2: Seller Managed Carrier

1. Select Non-Amazon Partnered Carrier
   • Choose Non-Amazon Partnered Carrier from the carrier options.
2. Enter Carrier Code
   • Select your carrier from the dropdown menu. If your carrier’s code is not listed, select Other.

Step 5: Print Pallet Labels (for Amazon Partnered Carrier Only)

This step applies only if you selected Amazon Partnered Carrier as your carrier option. After confirming pallet configurations and shipping cost estimates in Step 4, you can proceed to print pallet labels.

1. Select Pallet Label Format
   • Choose your preferred pallet label format under Print Format. Available options include:
     • Thermal Printing (4 x 6 inches)
     • US Letter (3-1/3″ x 4″)
     • A4 page (one label per page)
2. Print Labels
   • Click Print after selecting the label format. Ensure labels are placed squarely on each pallet so they’re easily visible to forklift drivers.
3. Proceed to Tracking Details
   • Click View Tracking Details to move to the next step in the workflow.
4. Bill of Lading (BOL)
   • A Bill of Lading (BOL) will be generated by Amazon, available by the morning of the pickup date. This BOL must be provided to the carrier, as shipments will be refused upon delivery without it.

Step 6: Tracking Details

This step applies to Small Parcel Deliveries (SPD) and Amazon Partnered Carrier shipments for Less Than Truckload (LTL) and Full Truckload (FTL).

1. View Shipment Details
   • Access shipment details, including Shipment ID, Amazon Reference ID, and Carrier Information.
2. Bill of Lading (BOL)
   • On the day of pickup, the Bill of Lading (BOL) will be available for download by 8:00 a.m. PST. You will also receive a copy via email.
3. Tracking for Amazon Partnered Carrier Shipments
   • For LTL shipments, Amazon generates the Carrier Tracking ID for each pallet, viewable in the tracking details section.
   • For SPD shipments with Amazon Partnered Carrier UPS, a tracking ID is generated for each box. In the tracking details step, you can view:
     • AWD Box Label
     • Tracking ID
     • Status
     • Weight (lb)
     • Dimensions (in)
4. Tracking for Non-Partnered Carrier Shipments
   • For SPD shipments with a non-partnered carrier, you must manually provide tracking IDs for each box. Tracking details, including the current status, will be shown on the AWD Shipment Summary page.
   • You can update tracking IDs in bulk by selecting the bulk upload option.

This step helps ensure tracking and accountability for each box or pallet as it moves through the distribution process.

And with that, we have completed the process of sending inventory to AWD.

AWD offers several reports to help you track inventory, shipments, and costs. These reports provide essential insights, from monitoring inbound shipments to managing monthly storage and transportation fees. 1. Inbound Shipment Report: Keeps track of all shipments sent to AWD, noting booked, shipped, and received units per SKU. 2. Inventory Ledger Report: Records all inventory movements within AWD with summary and detailed views. 3. Fee Reports: Breaks down monthly AWD charges for storage and transportation, with reports on storage fees and transportation fees.

Multi-Channel Distribution (MCD) using AWD

Multi-Channel Distribution (MCD) is Amazon’s new tool for sellers who need to manage inventory across multiple channels. 

With MCD, you can move products from Amazon Warehousing and Distribution (AWD) to various sales channels, whether that’s online or in physical stores. 

It lets you keep all your stock in one place and then distribute it where you need it. And this further makes your supply chain simpler and your shipping costs lower by consolidating shipments.

Enrollment Process for MCD

• Go to AWD program page > Move SKUs to Amazon and non-Amazon destinations > Add and manage channels.

• Enter channel details and click Save.

• For channels needing extra labeling, choose the Shipment labels provided at order creation.

• Save destination information and start creating MCD orders.

• Add additional channels or destinations as needed.

Creating an MCD Order

• Go to AWD program page > Move SKUs to Amazon and off-Amazon destinations > Move Inventory.
• Select Off Amazon distribution and choose origin and destination warehouses.

• Choose SKUs and specify the number of boxes to move.
• Click Confirm, then Review Move Request.

• Select the shipping method (small parcel or palletized) and upload any required labels.
• Click Submit request to finalize. 

Note: It’s important to note that orders cannot be canceled once submitted.

Order Tracking

• Go to Track shipments to fulfillment centers > Track replenishments.
• Search by Replenishment Order ID or Shipment ID for MCD orders.
• Check Order Status for the current status and Contents for the tracking ID once shipped.

MCD Fees

For Multi-Channel Distribution (MCD) replenishment orders, the following fees apply:

• Processing Fee:
  • Base Rate: $2.50 per box.
  • Integrated Rate: $2.13 per box if using Amazon Global Logistics (AGL), SEND, or Amazon Partnered Carrier.
• Transportation Fee:
  • For all MCD replenishments, the transportation fee is $1.65 per cubic foot.

How Does Amazon Multi-Channel Fulfillment Work with AWD to Fulfill Orders? Once your inventory is stored in Amazon Warehousing and Distribution (AWD), Amazon automatically replenishes stock in its fulfillment network. If a customer places an order on Amazon, Amazon will handle the picking, packing, and delivery through Fulfillment by Amazon (FBA). However, if a customer places an order on your own website through Buy with Prime, or if they make a purchase on another enabled sales channel, Multi-Channel Fulfillment (MCF) will step in to deliver the order seamlessly. Example For instance, if a customer places an order on your Shopify store, the MCF app for Shopify links the order to Amazon’s system. Amazon then picks, packs, and ships the product directly to the customer, letting you use AWD as a centralized inventory hub while Amazon manages the fulfillment process. You can read more about it in this blog: How To Integrate Fulfillment By Amazon (FBA) with Shopify

What is the Cost of AWD?

There are no fees to enroll in Amazon Warehousing and Distribution (AWD), but sellers should be aware of potential Amazon warehousing and distribution fees that apply to storage and fulfillment services. Below is a breakdown of each cost type.

Cost Breakdown

Cost Type	Base Rate (Third-Party Transportation)	Integrated Rate (Using AGL or PCP)	Discount on Base Rate
Storage	$0.48/cu ft/month	$0.36/cu ft/month	25%
Processing	$2.50/box	$2.13/box	15%
Transportation to FBA	$1.00/cu ft	$0.85/cu ft	15%
Transportation to Other Channels	$1.65/cu ft	$1.65/cu ft	N/A

Note: If you use Amazon Global Logistics (AGL) or the Amazon Partnered Carrier Program (PCP) to send inventory to AWD, you can save 25% on storage and 15% on processing and transportation costs.

AWD Promotions

From September 2024 to December 2024, Amazon is offering discounted storage at $0.20/cu ft/month for inventory stored in the AWD Inland Distribution Center located in Texas (South Central region).

You might also like to read: 1. Top 15 Amazon Inventory Management Software for Sellers  2. A Guide to Amazon Retail Arbitrage For Profitable Reselling 3. How to Increase Sales on Amazon: 25 Expert Tips for Sellers 4. Amazon Dropshipping for Sellers: An Ultimate Guide 5. How to Buy UPC Codes for Amazon: A Complete Guide with Tips 6. 35+ Amazon Analytics Tools Every Seller Should Try 7. Amazon Attribution Explained: What It Does and Why Use It

Conclusion 

In conclusion, Amazon Warehousing and Distribution (AWD) makes inventory management easy and cost-effective. 

AWD simplifies storage, restocks inventory, and ensures products are ready for customers. It helps sellers save on logistics costs and reduce manual work. With benefits like quick fulfillment, multi-channel distribution, and scalable storage, AWD supports smooth growth. 

For sellers of all sizes, AWD offers a smart way to keep products ready for Amazon and other sales channels. 

Take time to review if AWD fits your business needs and makes sense for your growth. And maybe then you can go enroll in the program. 

Good luck! 

FAQs

1. What is Amazon warehousing and distribution?

Amazon warehousing and distribution involves storing products in Amazon’s fulfillment centers, where they are packed and shipped to customers. This system streamlines logistics for sellers, allowing them to reach a broader customer base efficiently.

2. What is the difference between an Amazon warehouse and a distribution center?
Warehouses mainly store inventory for extended periods, while distribution centers handle processing and shipping, making them more efficient for quick order fulfillment.

3. What is Amazon Transportation for merchants?
Amazon Transportation Services (ATS) supports merchant logistics by shipping products to Amazon warehouses or directly to customers, integrating multiple carriers for fast deliveries.

4. How to become an Amazon distribution center?
Businesses need to apply through Amazon’s logistics programs and meet standards in capacity, tech integration, and operations to qualify as a distribution center.

5. How much does AWD cost? Does pricing change during the holiday season?
AWD costs vary by rate type. Base rates apply to self-managed shipping: storage at $0.48/cu ft, processing at $2.50/box, and transportation at $1.00/cu ft.

The Integrated Rate offers discounts if using Amazon’s logistics services: storage at $0.36/cu ft, processing at $2.13/box, and transportation at $0.85/cu ft.

For pricing during the holiday season, sellers should check AWD Promotions.

6. Can I send inventory currently stored in FBA to AWD?
Yes, sellers can transfer inventory from FBA to AWD, but they should check specific guidelines and procedures for transferring stock between these services.

7. Can I store any type of products with AWD?
AWD restricts certain items, like hazardous materials and perishables. Sellers should review Amazon’s product eligibility guidelines for this program.

8. What is the difference between Amazon FBA and AWD?
FBA handles full order fulfillment and customer service, while AWD is focused on warehousing and inventory management only.