As peak season approaches, many sellers find themselves grappling with unexpected inventory capacity restrictions. Disrupted replenishment and compromised seasonal stocking plans present a dual challenge to both operational efficiency and profit margins. Amazon has recently launched its Warehousing & Distribution (AWD) program, designed to provide U.S. marketplace sellers with flexible storage solutions to overcome replenishment hurdles and capitalize on seasonal opportunities.
Amazon AWD: Pay-As-You-Go Storage Alternative
Amazon Warehousing & Distribution (AWD) is a specialized storage service tailored for U.S. marketplace sellers. Merchants can utilize third-party cross-border logistics or Amazon's Global Logistics (AGL) to directly store inventory in AWD facilities located near FBA warehouses. The program's key advantage lies in its flexible "pay-as-you-go" pricing model and seamless integration with FBA warehouses, effectively addressing sellers' replenishment challenges.
Essentially functioning as an overseas warehouse, AWD distinguishes itself from traditional third-party logistics by eliminating manual replenishment operations. The system automatically restocks FBA warehouses based on inventory levels, maintaining optimal stock quantities to prevent shortages and ensure continuous sales operations.
AWD Benefits: Automated Replenishment and Global Inventory Monitoring
- Automated replenishment: Sellers no longer need to worry about Amazon inventory shortages or replenishment restrictions. The system automatically replenishes FBA warehouses from AWD stock, ensuring stable product availability and potential sales growth.
- Global inventory visibility: AWD provides comprehensive inventory tracking, allowing sellers to monitor stock levels and shipment progress in real-time for improved supply chain management.
Product Eligibility and Program Limitations
AWD currently excludes certain product categories, including:
- Non-sortable items
- Oversized or heavy products
- Hazardous materials
- Temperature-controlled goods
- Perishable or time-sensitive items
- Footwear and jewelry
- Multi-ASIN packaging
Pricing Structure
The program operates on a pay-as-you-go model, with fees comprising storage, processing, and transportation costs. Amazon calculates charges based on actual usage, ensuring sellers only pay for services utilized.
Strategies for Increasing Replenishment Limits
Sellers may consider these approaches to request higher replenishment quantities:
- Contact Amazon Seller Support through the backend portal, specifically selecting "Other FBA Questions" and clearly requesting "replenishment limit" adjustments rather than "storage limit manager" modifications.
- Prepare comprehensive justification materials including seasonal sales forecasts and historical performance data to strengthen the application.
- Allow adequate processing time after submission, as Amazon typically responds via email confirmation and subsequent notification of results.
The introduction of AWD provides sellers with innovative solutions to navigate replenishment challenges during critical sales periods. When combined with strategic inventory planning, the program may help merchants optimize seasonal performance and business growth.