No changes to the beginning, no separation of warehouses, no Amazon warehousing configuration service fees and low inventory fees
March 12, 2024
The Amazon Logistics (FBA) inbound configuration service fee officially came into effect on March 1, 2024, and the low inventory fee will also take effect on April 1. Many sellers have indicated that cost pressure has increased.
Amazon Warehousing & Distribution (AWD) is a warehousing and distribution service. After the goods are shipped to the AWD warehouse, Amazon will arrange replenishment from the AWD warehouse to FBA based on sales forecasts.
In addition to Amazon Global Logistics (AGL), sellers can also use third-party carriers they are already cooperating with to deliver goods to AWD warehouses to achieve consolidated warehousing and are exempt from storage configuration service fees. Currently, it is sent to the AWD warehouse located in the western US by default. You can contact the customer support team to adjust the delivery to the AWD warehouse in the east of the US.
You can then choose to automatically restock AWD or manually restock to FBA. If you choose automatic replenishment, Amazon will monitor the inventory level of each seller ASIN in FBA and use a series of algorithms to automatically replenish the inventory to the Amazon Fulfilment Center (FBA) on your behalf to achieve seamless integration with FBA and avoid outages. Currently, AWD is only available in the US.
*You can use any first-haul logistics carrier to ship to the AWD warehouse and enjoy the discount using Amazon Global Logistics (AGL).
AWD is continuously expanding its warehousing and operation capabilities. Currently:
🔹 Storage (from truck arrival to AWD to product availability) takes only 2-4 days;
🔹 Delivery (from submission of restocking requirements to FBA receipt) takes only 10-14 days.
Cross-border e-commerce, from initial logistics to completion of terminal delivery, takes a long time, and warehousing management is complicated, and the overall supply chain faces many uncertainties. In addition, it is also common for sales opportunities to be lost due to mistakes in predicting the pace of replenishment, unreasonable delivery/replenishment plans, etc.
AWD can help you solve the problems of warehousing and distribution after the goods arrive. It is more flexible and the cost of batch storage is more cost-effective! Xiaobian will further introduce AWD's service advantages and operation mode to help you understand AWD in depth!
Advantage 1: Lower supply chain costs
AWD's average storage fee is lower than FBA, and there are no peak season price adjustments. The cost of warehousing AWD only requires storage fees, handling fees, and transportation fees. There are no storage configuration service fees. Starting automatic replenishment is also exempt from low inventory fees, excess inventory fees, and storage utilization surcharges.
Advantage 2: Inventory management made simple
AWD can effectively help you solve the problems of out of stock and limited storage capacity!After selecting automatic replenishment, AWD adjusts the replenishment according to the real-time storage situation, eliminating all kinds of trouble caused by storage capacity restrictions.
Additionally, once the goods are stored in AWD, your products can be searched and purchased before they reach FBA, ensuring maximum sales.
In the past, sellers needed to go through the complicated process of estimated sales volume, estimated logistics time, formulating delivery plans, checking storage restrictions, and applying for additional storage before entering FBA, but now with automatic AWD replenishment, sellers can save more worry and effort.
After you select automatic replenishment, AWD will launch the following process:
In addition to the Amazon fulfillment centers described above, AWD can also ship inventory to other non-Amazon sales channels. By integrating supply warehouses from various channels inside and outside of Amazon into AWD, a single inventory pool can manage omni-channel delivery.
New Seller Onboarding Guide Video
Before entering Amazon, please read the registration guide video, prepare relevant registration materials in advance, understand the specific registration process, and help you start a store smoothly!