Amazon Warehousing and Distribution (AWD) has been a key part of my FBA strategy, and I’ve used it several times now. Overall, it’s a mixed bag, but it can be a great tool if you know what to expect. Here’s my personal experience with AWD—the good, the bad, and everything in between.
My AWD Setup and Costs
Currently, I’m storing enough inventory at AWD to cover about $250,000 in gross revenue. My monthly storage cost? Just $80. Compared to Amazon FBA storage fees, that’s a steal.
🚫 The Drawbacks of AWD
- No Small Parcel Shipping: AWD only accepts LTL (Less-Than-Truckload) or full truckload shipments. I had to build a pallet with 5 SKUs.
- High LTL Costs: Shipping LTL to AWD from Colorado cost me $450. Small parcel shipping via UPS would have been around $300—a 50% increase. However, LTL rates can fluctuate, so this could’ve been a timing issue.
- One-Way Inventory: Currently, AWD inventory can only be used for Amazon FBA orders. No multi-channel fulfillment—yet. Amazon suggests this may change in the future.
- Slow Receiving Times: AWD isn’t quick. I had a pallet shipped 75 miles within Southern California, and after 4 weeks, all I could see was that the BOL (Bill of Lading) was created.
- Slow Intake Processing: Even once it arrives, AWD can take its sweet time logging inventory.
✅ The Benefits of AWD
- Low Storage Costs: At $80 per month for a significant amount of inventory, it’s far cheaper than FBA storage.
- No Intake/Placement Fees: Unlike sending directly to FBA, AWD cuts out those extra fees.
- No Low Inventory Surcharges: Items set to auto-replenish from AWD avoid Amazon’s penalty fees for low stock.
- Direct Fulfillment from AWD? Amazon claims they’ll ship from AWD if FBA runs out, but I haven’t seen this happen yet.
- International Shipping Value: AWD shines for imports. A pallet from my Chinese supplier cost $250 to ship into AWD, with AGL handling tariffs. Total time: 2 months from EXW pickup to inventory logged. Monthly storage? Just $50. Plus, I get months of hands-off FBA replenishment.
My Take on AWD for Medium-Sized Sellers
Amazon seems to be nudging medium-sized sellers (those shipping pallets) toward AWD. It’s not perfect—slow processing and shipping costs can sting—but AWD is a solid staging ground for FBA. Plus, it helps dodge some of Amazon’s newest fee increases.
For me, AWD is a useful tool, especially for international shipments and long-term storage. But for domestic inventory, LTL costs and slow processing are definite downsides.
Would I recommend AWD? Yes, if you can ship by the pallet and don’t mind a slower pipeline. The savings on storage and FBA fees can make a big difference to your bottom line.
