Amazon recently announced that starting October 1, 2025, Amazon warehousing and distribution storage fees will rise to $2.40 per cubic foot per month during Q4 (October to December), marking an eightfold increase compared to off peak months. 

For the rest of the year, storage rates will also rise to $0.78 per cubic foot per month, up from previous lower rates. These hikes could result in higher operating costs, reduced profit margins, and potential disruptions for sellers relying on AWD as their primary fulfillment strategy. 

What is Amazon Warehousing and Distribution (AWD)?

Amazon Warehousing and Distribution (AWD) is a third-party logistics (3PL) service that allows sellers to store and distribute inventory in bulk across Amazon’s fulfillment network. 

AWD provides long-term storage, streamlined inventory distribution, and direct shipment capabilities to optimize supply chain efficiency. This service enables businesses to strategically position inventory closer to customers, reducing shipping times and costs. 

Unlike traditional Amazon Fulfillment Centers (FBA), where inventory is stored and shipped to customers as individual orders, AWD focuses on large-scale distribution, ensuring that products remain stocked across multiple regions to meet demand effectively. 

How Does Amazon AWD Work?

The Amazon AWD process is designed to simplify inventory management for sellers. Here’s how it works: 

1. Sellers send bulk inventory to Amazon’s AWD network instead of storing products in their own warehouses. 
2. Amazon handles the storage and distribution of products across multiple fulfillment centers based on demand forecasting and customer location. 
3. When an order is placed, inventory is pulled from the closest fulfillment center, ensuring faster deliveries and lower shipping costs. 
4. AWD also integrates with Amazon Fulfilled by Merchant (FBM) enabling sellers to ship products to other marketplaces or retail stores. 

Amazon Warehousing and Distribution Fees, Costs, and Pricing Structure in 2025

Amazon AWD is a pay-as-you-go service, meaning sellers are charged based on storage volume, distribution needs, and peak or off-peak seasons. 

Peak Period (October to December)

Amazon AWD charges significantly higher storage fees during the peak shopping season. 

Starting October 1, 2025, through December 31, 2025. AWD storage fees will increase to $2.40 per cubic foot per month. 

This is nearly 8X the standard rate and can substantially impact profit margins for sellers who rely on Amazon warehouse logistics during Q4. 

Businesses that don’t account for these increased costs may face unexpected expenses and reduced profitability. 

Off-Peak Period (January to September) 

During non-peak months (January to September), Amazon AWD storage fees will be $0.78 cubic foot per month. This marks a significant increase from the previous $0.36/cu ft, adding to the overall warehousing and distribution costs for sellers. 

For comparison, Forceget’s warehouse program Amazon solution remains fixed at $0.32 cubic foot per month, regardless of the season, providing sellers with a more predictable and cost-effective alternative. 

Amazon Fulfillment Center vs. Distribution Center

Understanding the difference between an Amazon fulfillment center and an Amazon distribution center is important when determining whether AWD is the right choice for your business.

• Amazon Fulfillment Center (FBA): Focuses on picking, packing, and shipping individual orders directly to customers. 

• Amazon Distribution Center: Primarily serves as a bulk storage and inventory redistribution hub, ensuring products are positioned in fulfillment centers before being sold. 

AWD acts as a bridge between these two, offering long-term storage and inventory allocation across Amazon’s network. 

Advantages of Amazon Warehousing and Distribution

Amazon Warehousing and Distribution offers several benefits for ecommerce sellers looking to streamline their logistics and improve inventory management.

One of the primary advantages of AWD is bulk storage and efficient distribution. By storing products in bulk within Amazon’s fulfillment network, sellers can ensure that their inventory is strategically placed closer to demand centers, reducing shipping times and costs. 

Another significant advantage is the integration with Amazon fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM) services. 

AWD allows sellers to use a combination of fulfillment methods, providing greater flexibility in managing sales across different channels. This integration ensures that products can be moved seamlessly from AWD warehouses to fulfillment centers, ensuring fast delivery to customers. 

AWD also helps sellers optimize their logistics and supply chain operations by eliminating the need for external third party logistics providers. With the Amazon warehouse management system, sellers gain access to a centralized distribution solution, reducing reliance on multiple warehouses and lowering operational complexity. 

AWD also benefits sellers by reducing stockouts and improving inventory replenishment, which is especially important for businesses operating in high-demand categories or experiencing seasonal sales fluctuations. 

How to Enroll in Amazon Warehousing and Distribution

Sellers interested in using AWD Amazon warehouse can enroll in the program through Amazon Seller Central.

The enrollment process involves a few key steps to ensure seamless onboarding and integration with Amazon logistics network. 

First, sellers need to navigate to the “Amazon Warehousing and Distribution” section in Seller Central and review the service details. Amazon provides an overview of the benefits, pricing structure, and storage guidelines, allowing sellers to evaluate whether AWD aligns with their business needs. 

Next, sellers need to set up their inventory for AWD by creating inbound shipments. This requires entering product details, packaging information, and the quantity of units to be sent to AWD facilities. 

Amazon provides specific instructions on how inventory should be prepared and labeled to comply with its storage and distribution standards. 

Once the inventory is received at an AWD facility, Amazon takes over inventory management, storage, and distribution. Sellers can monitor their stock levels, request shipments to fulfillment centers, and track performance through Seller Central. 

Eligibility Criteria for Amazon Warehousing and Distribution

The first requirement is having a Professional Seller Account, as AWD is not available to individual sellers. 

Professional accounts allow access to advanced fulfillment features, making them essential for businesses looking to scale operations through AWD. 

Sellers need to also comply with Amazon’s inventory storage guidelines. Certain product categories, such as hazardous materials, perishable goods, and restricted items, may not be eligible for AWD storage. 

Additionally, sellers need to be prepared to store products in bulk. Amazon warehouse distribution is designed for businesses that manage large volumes of inventory and require efficient distribution across multiple fulfillment centers. Amazon may impose minimum storage volume requirements, which sellers need to meet to participate in the program. 

Sellers should also maintain strong performance metrics on Amazon, including a history of reliable order fulfillment, low defect rates, and compliance with shipping and storage standards.

Amazon may review a seller’s track record before approving them for AWD to ensure they align with its operational guidelines. 

What Products Can Be Stored With Amazon Warehousing and Distribution?

Generally, AWD is best suited for non-perishable, non-hazardous, and standard-sized products that are regularly sold on the Amazon marketplace.

Consumer goods, such as clothing, electronics, household essentials, and health products, are commonly stored in AWD facilities. These items have consistent demand and benefit from Amazon’s strategic inventory placement, ensuring quick and cost-effective delivery to customers. 

Books, media, and small appliances also qualify for AWD storage. These products typically have longer shelf lives and require bulk storage solutions, making AWD an efficient option for sellers in these categories. 

However, certain items cannot be stored in AWD, including flammable, perishable, and high-value restricted products. This includes food and beverage items, temperature-sensitive goods, and items requiring special handling. Amazon enforces these restrictions to maintain compliance with safety and storage regulations. 

Sellers should review Amazon’s detailed product eligibility guidelines before enrolling in AWD to ensure their inventory meets the program’s requirements. 

Amazon Warehousing and Distribution Drawbacks

One of the biggest concerns is the high cost of storage Amazon AWD fees, especially during peak seasons.  

Starting in 2025, Amazon AWD services will increase its storage fees to $2.40 per cubic foot per month from October to December, nearly eight times higher than the standard off-peak rate. 

Another drawback is the lack of control over inventory distribution. When using Amazon warehouses, Amazon decides where and how products are distributed across its fulfillment network. This can sometimes lead to inventory imbalances, causing stock shortages in high-demand regions or overstock in less active markets. 

Additionally, AWD is not ideal for all business models. Sellers with low inventory turnover or niche product categories may find the costs of AWD storage to be too high, especially when compared to third-party logistics (3PL) providers. 

Lastly, AWD’s pricing structure lacks stability, making financial planning challenging for businesses with seasonal sales patterns. With Amazon AWD fees fluctuating based on demand, sellers may struggle to accurately forecast storage costs, leading to unexpected expenses during key sales periods.  

Forceget FBA Warehouse Rates Fixed at $0.32/cu ft Year-Around

Forceget offers a fixed storage rate of $0.32 per cubic foot per month with no peak-season price increases. 

This pricing structure provides sellers with year-round cost stability, helping them better manage their logistics and profit margins. 

Unlike AWD, where storage fees increase dramatically during Q4, Forceget maintains consistent pricing, allowing sellers to forecast expenses with confidence. 

This is especially beneficial for businesses that rely on stable inventory costs to remain competitive in the ecommerce space. 

Comparing the storage fees of Amazon AWD vs Forceget, the cost different is substantial: 

By choosing Forceget, sellers can avoid unexpected cost spikes, reduce financial risks, and maintain consistent profit margins throughout the year.

Additionally, Forceget provides greater control over inventory distribution, ensuring that products are stored and shipped according to the seller’s preferences rather than being subject to Amazon’s allocation decisions.