---
title: What is Amazon Warehousing & Distribution (AWD)?
description: Learn more about Amazon Warehousing & Distribution, or Amazon AWD for short, a 3PL service that allows you to store and ship products through FBA.
image: https://www.ecomengine.com/hubfs/images/featured/blog/amazon-warehousing-and-distribution.png
---

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](https://www.ecomengine.com/restockpro/fba-profit)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/restockpro-kit-svg.svg) | Kitting Create kits or bundles from local inventory |
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](https://www.ecomengine.com/restockpro/fba-kitting)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/restockpro-barcode-svg.svg) | Amazon Item Labels Customize stickers and labels with expiration dates and more |
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](https://www.ecomengine.com/sellerpulse/fba-analytics)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-box-svg.svg) | Buy Box Monitoring Find out when you win or lose the Buy Box, including when it's suppressed |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/buy-box)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-image-svg.svg) | Listing Changes Detect suppressed listings, hijacker activity, and content changes |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/listing-monitoring)

[| ![sellerpulse-analyze-returns](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-analyze-returns.svg)   | Analyze Returns Identify FBA return trends over time by ASIN, reason, and disposition |
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](https://www.ecomengine.com/sellerpulse/fba-returns)

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[VIEW PRICING](https://www.ecomengine.com/blog/amazon-awd#)

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[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/restockpro-chart-svg.svg) | Forecasting Restock the right amount at the right time |
| --- | --- |

](https://www.ecomengine.com/restockpro/inventory-forecasting)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/restockpro-truck-svg.svg) | Purchase Orders Manage suppliers and inventory with ease |
| --- | --- |

](https://www.ecomengine.com/restockpro/shipments)

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| --- | --- |

](https://www.ecomengine.com/restockpro/fba-profit)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/restockpro-kit-svg.svg) | Kitting Create kits or bundles from local inventory |
| --- | --- |

](https://www.ecomengine.com/restockpro/fba-kitting)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/restockpro-barcode-svg.svg) | Amazon Item Labels Customize stickers and labels with expiration dates and more |
| --- | --- |

](https://www.ecomengine.com/restockpro#stickers)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/video-svg.svg) | See How It Works Watch a short recording to learn more |
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](https://www.ecomengine.com/restockpro/demo)

[VIEW PRICING](https://www.ecomengine.com/blog/amazon-awd#)

#### SellerPulse Features

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-bell-svg.svg) | Operational FBA Analytics See detailed insights for FBA fees, proceeds, sales, and product cost |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/fba-analytics)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-box-svg.svg) | Buy Box Monitoring Find out when you win or lose the Buy Box, including when it's suppressed |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/buy-box)

[| ![single-star](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-image-svg.svg) | Listing Changes Detect suppressed listings, hijacker activity, and content changes |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/listing-monitoring)

[| ![sellerpulse-analyze-returns](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-analyze-returns.svg)   | Analyze Returns Identify FBA return trends over time by ASIN, reason, and disposition |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/fba-returns)

[| ![sellerpulse-magnifying-chart-svg](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-magnifying-chart-svg.svg)   | FBA Inventory Insights Plan FBA inventory and avoid unnecessary fees |
| --- | --- |

](https://www.ecomengine.com/sellerpulse/inventory-returns)

[| ![video-icn](https://www.ecomengine.com/hubfs/images/decorative/illustrations/nav-icons/sellerpulse-video-svg.svg)   | See How It Works Watch a short recording to learn more |
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# What is Amazon Warehousing & Distribution (AWD)?

[![Matt Ellis](https://www.ecomengine.com/hubfs/images/headshots/external/matt-ellis.jpg)](https://www.ecomengine.com/blog/author/matt-ellis)

 By [Matt Ellis](https://www.ecomengine.com/blog/author/matt-ellis)

Amazon Warehousing & Distribution, or AWD for short, is an all-inclusive third-party logistics (3PL) solution. Amazon AWD stores and ship your products within the Amazon fulfillment network even if they’re not sold through Amazon.

So how does the Amazon AWD program work, how much does it cost, and how do you enroll? Amazon continues to expand the product types supported. Below, we explain everything you need to know about this Amazon service. 

## What is Amazon AWD?

First shared at the Accelerate conference in September 2022, [Amazon AWD](https://www.aboutamazon.com/news/small-business/amazon-announces-new-service-to-help-solve-supply-chain-challenges-for-sellers) is the marketplace's newest and most ambitious attempt at consolidating the supply chain for eCommerce retailers.

**AWD offers a slew of logistic features, not the least of which is pay-as-you-go storage for bulk upstream inventories.

Additional benefits include access to the Amazon Fulfillment Network (AFN), consolidation of inventory across all sales channels, and an auto-replenishment feature that automatically reorders and restocks your inventory to avoid stockouts.**

AWD can distribute your goods to any of your necessary channels: wholesalers, manufacturers, brick-and-mortar stores, and directly to customers.

## How Does Amazon AWD Work?

![Boxes on a pallet](https://www.ecomengine.com/hs-fs/hubfs/images/decorative/illustrations/wooden-pallet-boxes.png?width=300&height=277&name=wooden-pallet-boxes.png)The goal of the [Amazon AWD service](https://sellercentral.amazon.com/help/hub/reference/GF6ZC8VEBM7HCEGV) is to streamline the supply chain and distribution network for online retailers. In keeping with that theme, AWD has simplified the entire inventory management process.

If you're shipping less-than-truckload (LTL) or full-truckload (TL) inventory to Amazon distribution centers within the contiguous United States, you can utilize Amazon's Partnered Carrier program. The program can be also used for [Amazon Global Logistics](https://www.ecomengine.com/blog/amazon-global-logistics-service). You can send shipments from anywhere in the world to AWD sites to fulfill orders.

***Related reading: ***[***Supply Chain by Amazon: Simplifying Global Logistics***](https://www.ecomengine.com/blog/supply-chain-by-amazon)

Participating sellers send their inventory, in bulk, to one of Amazon’s distribution centers. Sellers can then manage their inventory storage operations with the Amazon Fulfillment Network. Unlike Fulfillment By Amazon ([FBA](https://www.ecomengine.com/amazon-fba)), there are no capacity limits for AWD.

***Related Reading: [Breaking Down Amazon's New FBA Capacity Limits](https://www.ecomengine.com/blog/fba-capacity-limits)***

Your stock is automatically repositioned and relocated to whichever storage facilities are the most effective. This optimizes both the delivery times and fees, at no extra charge.

From there, you can manage all your orders from a single pool, whether they’re on Amazon or not. Amazon orders are managed with FBA, while off-Amazon orders are handled with Amazon Multi-Channel Fulfillment ([MCF](https://www.ecomengine.com/blog/amazon-multi-channel-fulfillment)).

The cherry on top, however, is the auto-replenishment feature. Whenever your stock levels drop below a certain point, AWD will automatically reorder more. Furthermore, stock deliveries are made directly to Amazon facilities, so sellers no longer have to act as intermediaries.

## How Much Does AWD Cost?

There are three rate types associated with AWD services: base, smart storage, and Amazon managed. Base rate applies when you are manually managing replenishment to fulfillment centers. Your SKUs can qualify for the smart storage rate when you use AWD to automatically replenish inventory with FBA. The criteria include auto-replenishment rate (at least 70% of the SKU's inventory must be sent to FBA via AWD auto-replenishment in the previous 90 days) and combined historical days of supply (the SKU must have an inventory level of at least 70 days of supply relative to historical demand across AWD and FBA). 

The Amazon managed rate applies when you use Supply Chain by Amazon for your SKU. This include 20% off AWD storage fees for that SKU and 10% off AWD transportation fees to FBA for that SKU.

There is also an AWD processing fee, which includes inbound and outbound processing costs.

You can see [current and future rates](https://sellercentral.amazon.com/help/hub/reference/GAYG62Q3MPE6STFS) in Seller Central.

## How to Enroll in Amazon AWD

Interested in taking advantage of Amazon AWD yourself? Here’s how to enroll.

First, go to the [AWD program page](https://sellercentral.amazon.com/ap/signin?clientContext=134-3729890-6866459&openid.return_to=https%3A%2F%2Fsellercentral.amazon.com%2Fasdn%2Fabout&openid.identity=http%3A%2F%2Fspecs.openid.net%2Fauth%2F2.0%2Fidentifier_select&openid.assoc_handle=sc_na_amazon_v2&openid.mode=checkid_setup&openid.claimed_id=http%3A%2F%2Fspecs.openid.net%2Fauth%2F2.0%2Fidentifier_select&openid.ns=http%3A%2F%2Fspecs.openid.net%2Fauth%2F2.0&mons_redirect=sign_in&ssoResponse=eyJ6aXAiOiJERUYiLCJlbmMiOiJBMjU2R0NNIiwiYWxnIjoiQTI1NktXIn0.AyHE7wYoPu57uhVG2RMNRHMNbQSPxTUT6hQNv3lupAEP5dD72VlPoQ.b51BRfokuO_DrHjg.rnup8ivYP7taKe5TPj-nF9S4ZT0NzS0D8n1ge5AFRe530vzWJX10GHr3UWgYGTAtkLG9ZEg7jDmpfZi_n8NfZOXMHlf7etwvanxRSbhIppU3qvbvV7Lomk16NsdfzPiETC5bpRQAOah-M9QpOVfgQMRZ84XSFvhqswlSL1w7UITGe06j4AjueRJZr4Vg-pn2yDAIEXxXBFtbDmUkGcvD5bRABPDhxKH9cXiP2zoDWqWYq7qAEScAIgANM8ZSIB3gB0yYHb9dbhWOIGdFktymaJg5Szk94NLvODIEniKyobDZf0t8Un_Y9UqMOwyyOlm0Cruf9Ocu_Z76C9kajx8ejAZjc2piM8J0NyBoAxDt6hOFBhWBOjr9li6PeFIXtczbuSQQD-Ebbx7RnGJiIknjEqpj1lFp7vC0MX19IqjZaktuJoYQWAMQg5YzeQS0oCTwnWv5sSYqczd5ZboiWxs6vt0QzEVQf8guOu4flGCDWs3lR_LTylE81-wJwkiwdiWzS6Ri1uRmZ28eNUSsoTX8-fKFraUo.G0nSKxUL5LjIzTTk9mBSvw). Alternatively, you can access the enrollment page through Seller Central at Growth > Explore Programs > Warehousing and Distribution. The page provides further details about the AWD program if you have any questions. If you’re ready to go you can start by simply clicking the “Enroll” button in the upper-right corner.

Keep in mind that you’ll need to authorize the access of secondary users for inbound shipments. You can do this in the user permissions section of your Seller Central settings.

## Amazon AWD Eligibility

Product eligibility for AWD falls in line with the other Amazon services (i.e., no firearms or offensive materials), but here are a few details you can double-check to make sure you’re eligible.

At this time, AWD does not accept:

- Non-sortable products
- Perishables
- Shoes and footwear
- Jewelry
- Case packs that contain one unique SKU each
- Products that are heavy, bulky, or of an excessive size
- Hazmat products or products that require a temperature-controlled environment

If you sell these types of items, AWD isn't a good fit for you. Additionally, AWD doesn't currently support small parcel deliveries.

## Will You Give AWD a Try?

AWD has a lot of advantages that FBA lacks, making it a better choice for certain sellers. But how do you know if it’s right for you?

Consider Amazon AWD if you have any of these problems in particular:

- Shipment delays and excessive delivery times
- Frequent stock outages and unreliable forecasting
- Storage capacity limits at your current inventory facilities
- A complicated web of supply chain partners that are difficult to consolidate
- Varying storage costs that make it difficult to predict fees

AWD is specifically designed to deal with these problems. (If you sell exclusively via FBA, software like [RestockPro](https://www.ecomengine.com/restockpro) can also be a low-cost, highly effective solution!)

However, if you don’t currently have any of these issues, carefully calculate and compare the costs of switching over before you enroll.

[![Stack of boxes next to laptop with text, "Improve FBA inventory management" above button with text, "Learn more"](https://no-cache.hubspot.com/cta/default/5147382/922b2375-3d4e-4c0f-8daf-f8dc14b1846a.png)](https://cta-redirect.hubspot.com/cta/redirect/5147382/922b2375-3d4e-4c0f-8daf-f8dc14b1846a)

![newsletter-email-laptop](https://no-cache.hubspot.com/cta/default/5147382/interactive-177527396632.png)

![newsletter-email-laptop](https://no-cache.hubspot.com/cta/default/5147382/interactive-177527396632.png)

Originally published on January 31, 2023, updated March 24, 2025

This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.

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