How Amazon Warehousing and Distribution (AWD) Benefits Brands
18
Oct
Amazon

How Amazon Warehousing and Distribution (AWD) Benefits Brands

Posted on by Prime Retail Solution
By Prime Retail Solution
Posted on by Prime Retail Solution

As Amazon continues to expand its reach in the e-commerce space, it has introduced Amazon Warehousing and Distribution (AWD), a service designed to help brands improve their supply chain efficiency and lower their operational costs. For Amazon sellers, particularly 3P sellers, AWD offers a powerful solution for managing inventory and meeting customer demands more effectively.

In this blog, we’ll explore the benefits of using Amazon Warehousing and Distribution and how it can help established brands and retailers scale their business on Amazon.

What is Amazon Warehousing and Distribution (AWD)?

Amazon Warehousing and Distribution (AWD) is a logistics service that allows sellers to store their inventory in Amazon’s fulfillment network for long-term or short-term needs. Instead of having to manage their own warehousing solutions or constantly replenish Amazon’s Fulfillment by Amazon (FBA) centers, AWD gives sellers the ability to store products in Amazon’s dedicated storage facilities until they are needed for FBA.

By offering both storage and distribution services, AWD gives sellers more flexibility when it comes to managing inventory levels, reducing stockouts, and ensuring that products are always available to meet demand. This service is designed to integrate seamlessly with FBA, meaning products stored in an AWD warehouse can be quickly transferred to FBA centers as needed.

Interesting Fact: Amazon has expanded its warehousing network to offer nearly unlimited storage capacity through AWD, helping sellers avoid the headaches of managing inventory during high-demand periods like Prime Day, Black Friday and Christmas Sale!

How Does AWD Benefit Amazon 3P Sellers?

For 3P sellers using Amazon’s Seller Central platform, AWD provides several advantages that can streamline operations and increase sales. Below, we’ll explore some of the most significant benefits of using AWD for your brand.

Incorporating Amazon Warehousing and Distribution (AWD) into your Amazon strategy offers immense benefits for brands looking to optimize their supply chain and streamline operations. This image provides a visual overview of AWD’s core functionalities, which can help brands on Amazon enhance their logistics:

  • Send and Track Inventory Shipments:

AWD simplifies the process of sending and tracking inventory. With a user-friendly interface, sellers can monitor their shipments as they move to Amazon’s distribution centers. This ensures timely and transparent logistics, keeping brands aware of their stock at every step.

Pro Tip: Use AWD to store seasonal products during off-peak times and transfer them to FBA centers just before high-demand periods like Q4. This strategy ensures you're well-prepared for peak seasons while keeping your storage costs low.
  • View Inventory in Storage:

With AWD, brands can view their real-time inventory stored in Amazon’s distribution centers. This visibility helps brands manage stock levels efficiently, preventing overstocking or stockouts, particularly during peak demand seasons.

Interesting Fact: Sellers using AWD can reduce the average time it takes for their products to become Prime-eligible by transferring stock directly from AWD to FBA​.
  • Move SKUs to Amazon and Non-Amazon Destinations:

AWD provides flexibility by enabling sellers to move inventory not only within Amazon’s fulfillment network but also to external platforms or direct sales channels. This feature is crucial for brands managing multi-channel sales strategies.

Pro Tip: Take advantage of AWD’s lower storage rates by keeping products that don’t need immediate fulfillment in AWD facilities. This way, you can free up space in FBA centers for fast-moving products, optimizing both your storage costs and fulfillment speeds.
  • Track Shipments to Fulfillment Centers:

Tracking replenishments and shipments is made easy with AWD. This ensures that inventory reaches Amazon fulfillment centers on time, reducing the risk of stockouts, especially during busy shopping periods like Prime Day or the holiday season

Interesting Fact: Sellers using AWD have reported a 25% reduction in supply chain management costs by eliminating the need for third-party logistics providers​.

AWD Inbound Shipment Report for Brands on Amazon

For brands selling on Amazon, efficient inventory management and shipment tracking are crucial to avoid delays and ensure products are available for customers. The AWD Inbound Shipment Report is a powerful tool that provides detailed insights into your shipments to Amazon Warehousing and Distribution (AWD) centers.

By using this report, available on Amazon Seller Central, brands can easily monitor shipment statuses, track SKU-level information, and identify any issues such as overages, shortages, or damaged goods. This allows for better control over the supply chain and helps resolve potential problems before they impact inventory availability.

Sellers can Request their AWD Inbound Shipment Report on Amazon Seller Central.

Sellers can Request their AWD Inbound Shipment Report on Amazon Seller Central.

Key benefits include:

  • Detailed Shipment Monitoring: Sellers can track their shipment progress, from creation to delivery, ensuring that inventory reaches distribution centers without delay.
  • SKU-Level Tracking: The report offers SKU-level information, helping brands track product quantities, damaged goods, or any discrepancies in shipped and received quantities.
  • Issue Resolution: The report flags issues like damaged boxes or incorrect quantities, enabling sellers to take quick action, avoiding stockouts or excess inventory.

For brands aiming to scale on Amazon, having access to the AWD Inbound Shipment Report ensures smooth fulfillment processes, helping maintain optimal inventory levels and avoid disruptions during peak sales periods.

This tool provides the transparency and control brands need to navigate Amazon’s fulfillment network successfully.

Sellers Using AWD Are Better Prepared for Peak Seasons

AWD is particularly useful during peak sales seasons, such as Prime Day or Black Friday, when demand for products skyrockets. By keeping extra inventory in AWD warehouses, you can ensure that your listings stay active and you don’t miss out on valuable sales opportunities.

How AWD Helps During Peak Seasons:

  • Preparedness: With AWD, you can store additional stock ahead of time and avoid last-minute rushes to replenish inventory during busy shopping periods.
  • No stockouts: Stockouts during major sales events can result in lost revenue and damage to your seller rating. AWD ensures that you have enough inventory on hand to meet increased demand.
Pro Tip: To maximize your sales during peak seasons, plan ahead by storing enough stock in AWD at least a few months in advance. This way, you can quickly transfer products to FBA centers when demand spikes.

Conclusion: How Prime Retail Solution Can Help You Leverage AWD

Amazon Warehousing and Distribution is an excellent solution for brands looking to streamline their logistics, reduce storage costs, and ensure fast fulfillment for their customers. By offering flexible storage and distribution options, AWD allows sellers to better manage their inventory, scale their operations, and avoid stockouts during busy periods.

At Prime Retail Solution, we specialize in helping Amazon sellers optimize their inventory management and logistics strategies. Whether you’re looking to take advantage of AWD’s cost-effective storage solutions or need help managing fulfillment during peak seasons, our team of experts can guide you through the process.

Ready to optimize your supply chain with AWD? Contact Prime Retail Solution today and discover how we can help you unlock new growth opportunities on Amazon!

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