To understand the differences between Amazon AWD vs FBA, it’s essential to evaluate their scope of services. While they share some similarities in inventory storage, they differ significantly in pricing, service depth, and suitability for various types of sellers.

What is Amazon Warehousing & Distribution (AWD)?

Amazon Warehousing and Distribution (AWD) is a fulfillment service offered by Amazon specifically designed for bulk storage and distribution of your inventory. 

It’s a suitable option for sellers who require long-term storage for large quantities of products and intend to distribute them through various channels, including Amazon’s fulfillment centers and independent channels. 

How Does Amazon Warehousing & Distribution Work (AWD)?

Amazon Warehousing and Distribution (AWD) is a fulfillment service offered by Amazon that provides bulk storage and distribution for your inventory. 

When you enroll in Amazon AWD, Amazon provides you with dedicated storage space in its fulfillment centers. You ship your inventory directly to these centers, where it is stored securely and efficiently. 

Amazon’s advanced warehouse management system tracks your inventory levels in real-time, ensuring accurate stock counts and preventing stockouts. 

When you receive an order, you send a fulfillment order to Amazon. Amazon’s automated system picks, packs, and ships the order directly to your customer. This offers a more streamlined process eliminating the need for you to handle the complexities of packaging, labeling, and shipping. 

Amazon also takes care of generating shipping labels, track shipments, and providing customer support for your orders.

Pros and Cons of Amazon AWD

Pros

AWD Amazon offers significantly lower storage fees compared to FBA, especially for long-term storage, which can be a major cost-saving advantage for sellers with large inventory volumes or slow-moving products. 

AWD allows you to distribute your products through various channels, including Amazon and other online marketplaces. With this flexibility, it gives you more control over your sales strategy and allows you to reach a wider customer base. 

Amazon’s auto-replenishment features can automatically send purchase orders to your suppliers when your inventory levels fall below a certain threshold, ensuring you always have enough stock to meet customer demand, reducing the risk of stockouts and lost sales. 

Cons

Amazon AWD generally has higher per-unit fulfillment fees than FBA, which can be disadvantageous if you sell high-volume, low-value products. 

AWD Amazon warehouse doesn’t offer as many additional services as FBA, such as packaging and labeling, meaning you may need to handle some of these tasks yourself or outsource them to a third-party provider. 

AWD only accepts standard-size products, which might be a limitation for sellers with oversized or oddly shaped products.

How to Enroll in Amazon Warehousing and Distribution

To enroll in AWD, you’ll need to meet Amazon’s eligibility requirements, which may include factors such as product type, sales history, and account health. Once you’ve determined your eligibility, you can create an AWD account on the Amazon Seller Central Platform. 

After creating your AWD account, you’ll need to prepare your inventory for shipment to Amazon’s fulfillment centers, which might involve labeling your products with appropriate barcodes and packaging them securely. Once your inventory is ready, you can ship it to Amazon’s designated warehouses using the shipping labels provided by Amazon. 

Amazon will receive and process your inventory, and it will be available for fulfillment as soon as it’s checked in and stored in Amazon’s fulfillment centers. You can then start using AWD to fulfill orders through Amazon and other sales channels. 

Differences between AWD vs FBA

AWD is primarily designed for bulk storage and distribution of large quantities of inventory, while FBA offers a comprehensive fulfillment solution that includes storage, picking, shipping, and customer service. 

AWD is suitable for sellers who require long-term storage for their products and intend to distribute them through various channels, including Amazon’s fulfillment centers and independent channels. FBA on the other hand, is ideal for sellers who prioritize a streamlined fulfillment process and don’t mind paying a premium for these additional services. 

AWD offers more flexibility in terms of distribution channels. You can distribute your products through Amazon’s fulfillment centers as well as other channels, such as your own website or other online marketplaces. FBA, on the other hand, is primarily designed for fulfilling orders through Amazon’s marketplace. 

AWD and FBA have different fee structures. AWD generally has lower storage fees but higher fulfillment fees compared to FBA. This is because AWD focuses on bulk storage, so you pay less for storing your inventory. 

However, you pay more of each unit that Amazon fulfills. FBA, on other hand, has higher storage fees but lower fulfillment fees, because FBA provides a more comprehensive fulfillment service, including picking, packing, and shipping. 

AWD offers a more limited range of services compared to FBA. AWD primarily focuses on storage and distribution, while FBA offers additional services such as packaging, labeling, and customer service. If you need a more comprehensive fulfillment solution, FBA might be a better option. 

Both AWD and FBA offer inventory management tools to help you track your stock levels and optimize your inventory. However, FBA’s inventory management tools are more advanced and provide more detailed insights into your inventory performance. 

Since Amazon handles fulfillment and customer service for both AWD and FBA, the customer experience is generally similar. However, FBA offers additional customer service features, such as branded packaging and custom inserts, which can help you enhance your brand image and customer satisfaction.

Since Amazon handles fulfillment and customer service, you have less control over the customer experience, which is a disadvantage if you prioritize a personalized customer experience.

Comparison of AWD vs FBA Fees

The specific fees for AWD and FBA can vary based on factors such as product size, weight, and storage duration. 

Feature	Amazon Warehousing and Distribution (AWD)	Fulfillment by Amazon (FBA)
Storage Fees	Lower	Higher
Fulfillment Fees	Higher	Lower

The Biggest Challenge of Amazon Storage

Amazon’s warehouse storage fees fluctuate between peak and non-peak seasons, often creating unexpected cost spikes during high-demand periods like the holidays.

This variability can make budgeting and expense management a challenge for sellers who rely on consistent overhead costs to maintain profitability.

Forceget, on the other hand, eliminates this uncertainty by offering fixed warehouse fees throughout the year. Regardless of seasonal demand or inventory levels, sellers can count on paying a stable, predictable rate, allowing for better financial planning and uninterrupted focus on scaling their business.

AWD FAQ

How Much Does AWD Cost? 

The cost of AWD depends on various factors, including storage fees, fulfillment fees, and additional services. It’s recommended to use Amazon’s fee calculator to get accurate cost estimates. 

How Does Auto-replenishment Work in AWD? 

Amazon’s auto-replenishment feature automatically sends purchase orders to your suppliers when your inventory levels fall below a certain threshold, helping ensure you always have enough stock to meet customer demand.

Can I send inventory currently stored in FBA to AWD instead? 

Yes, you can transfer inventory from FBA to AWD. However, there are specific procedures and fees associated with this process. 

You’ll need to create a removal order and ship the inventory to your preferred location.