Amazon AWD Will Start Warehousing Large-ticket Items From August 7

Starting yesterday, August 7, 2024, Amazon Warehousing and Delivery (AWD) service will begin accepting large items into its warehouses. This marks a major shift in Amazon's logistics and warehousing capabilities to provide sellers with a wider range of products.

Introduction to Amazon’s new AWD regulation to allow large-ticket items to be stored in warehouses

Through the AWD service, sellers can ship large items to the AWD warehouse, and Amazon will arrange replenishment from the AWD warehouse to FBA (Fulfillment by Amazon) based on sales forecasts, aiming to help sellers reduce operating costs and improve inventory management flexibility. This avoids or reduces the possible warehousing configuration service fees when shipping directly to FBA.

According to official news from Amazon, using AWD to automatically replenish goods to FBA, sellers will no longer need to pay warehousing configuration service fees for these large items, which will significantly reduce sellers’ operating costs, especially during peak seasons, AWD warehousing fees It only charges US$0.48/cubic foot/month, which is 80% lower than FBA storage fees in the same period.

The cost of warehousing AWD only includes storage fees, processing fees and transportation fees, and there is no warehousing configuration service fee. In addition, turning on automatic replenishment can also waive low-volume inventory fees, over-stock inventory fees and warehouse utilization surcharges.

In addition, Amazon has also launched a limited-time offer, that is, between July 1 and September 30, 2024 (Pacific time), AWD storage fees will automatically enjoy a 25% discount, as low as $0.36/cubic foot/month; processing fees and The transportation fee automatically enjoys a 15% discount, and there is no restriction on the first-leg logistics carrier. This means that for sellers who use third-party logistics service providers for transportation, they can enjoy more favorable transportation and storage fees while avoiding additional costs caused by price fluctuations in peak seasons.

Can I save on warehouse configuration service fees?

The warehousing configuration service fee is a fee charged by Amazon when sellers send inventory to the FBA warehouse, based on factors such as product size, weight, and warehousing location. Through the AWD service, sellers can first transport large items to the AWD warehouse, and then have Amazon uniformly deploy them to the FBA warehouse. In this process, there may be no need to pay or only a low warehousing configuration service fee.

By leveraging Amazon's AWD for bulky items, sellers can save on warehouse provisioning service fees typically charged by third-party logistics providers. Amazon's integrated system streamlines the process and reduces the need for additional configuration services.

Amazon's warehousing services often come with bundled features and may not require separate configuration services. This integration results in cost savings and improved operational efficiency.

Whether you can really save on warehousing configuration service fees, and the extent of the savings, depends on many factors, including the specific size, weight, transportation method of the product, and Amazon's charging policy.

Impact on sellers who use third-party logistics service providers for transportation

1. Reduce logistics costs

Sellers who use third-party logistics service providers can combine it with the AWD service to transport large items to the AWD warehouse first, and then have Amazon uniformly deploy them to the FBA warehouse. This approach may help reduce the high warehousing configuration service fees incurred when shipping directly to FBA, thereby reducing overall logistics costs.

2. Inventory management optimization

AWD service provides a more flexible inventory management solution. Sellers can adjust transportation plans in a timely manner based on sales forecasts and inventory conditions to ensure adequate and efficient use of inventory. At the same time, the AWD warehouse's rapid replenishment capabilities also help reduce sales losses due to insufficient inventory.

3. Reduce logistics risks

By using the AWD service, sellers can hand over the transportation and inventory management of large items to Amazon, thereby reducing losses caused by logistics delays, damage and other risks. Amazon's powerful logistics network and complete after-sales service system can provide sellers with more reliable protection.

4. Need to adapt to new processes

For sellers who use third-party logistics service providers, combining with AWD services may require them to adapt to new logistics processes and operating specifications. Sellers need to communicate closely with logistics service providers and Amazon to ensure the smooth execution of transportation plans and effective implementation of inventory management.

Amazon AWD's new rules for opening large-ticket goods into warehouses will have a positive impact on sellers who use third-party logistics service providers to transport them, helping to reduce logistics costs, optimize inventory management, and reduce logistics risks. However, sellers also need to adapt to new logistics processes and operating specifications to ensure the smooth execution of transportation plans and effective implementation of inventory management.

When you need to ship goods from China to Amazon Warehouses and Distribution Centers (AWD), ChinaDivision is your ideal partner. Chinadivision can provide full logistics services from China to Amazon AWD warehouse, including goods packaging, customs declaration, transportation, customs clearance and delivery to AWD warehouse. As a trusted third-party logistics (3PL) provider, ChinaDivision can help businesses navigate this shift and efficiently manage the transportation of goods from China to AWD.