Effective Fulfillment Solutions for Amazon Awd Fee Increases

Amazon announced that it will significantly increase its warehousing, handling and AWD (Amazon Warehouse Delivery) transportation fees from April 1, 2025. This adjustment has brought significant cost pressure to sellers who rely on Amazon's logistics services.

To encourage specific behaviors, Amazon has also launched preferential plans for smart storage rates and Amazon management rates, but certain conditions must be met.

Details of Amazon AWD fee adjustments

Overview of fee adjustments

1. Storage fees:

The standard storage rate increased from $0.87 per cubic foot to $1.10, an increase of 26%.

The smart storage rate increased from $0.75 per cubic foot to $0.85, an increase of 13%, and a new requirement for inventory to be stored in AWD for at least 70 days was added.

2. Handling Fees:

Inbound and outbound handling fees increased from $2.50 per box to $2.70, an increase of 8%.

New inbound handling fees and outbound handling fees, both at $1.35 per box.

3. Transportation Fees:

AWD transportation fees increased from $1.00 per cubic foot to $1.15, an increase of 15%.

New preferential rate plans

1. Smart storage rate:

10% off storage fees ($0.43/cubic foot/month), subject to the following conditions:

Use AWD automatic replenishment function;

Automatic replenishment rate ≥ 70% in the past 90 days;

SKU inventory level in AWD and FBA ≥ 70 days.

2. Amazon management fee rate:

20% off storage fee ($0.38/cubic foot/month) and 10% off transportation fee ($1.04/cubic foot) are available upon meeting the following conditions:

Use Amazon Supply Chain Smart Managed Service (AMS);

Meet the last two conditions of the smart storage fee rate at the same time.

Impact on sellers and professional advice

1. Increased costs:

The handling and transportation fees of self-shipping sellers have increased, and the overall operating costs may increase significantly. Sellers are advised to evaluate whether to switch to Amazon logistics services (such as FBA) or reduce costs by meeting discount conditions.

2. Inventory management optimization:

Sellers need to optimize inventory management, increase inventory turnover, and avoid high storage costs caused by inventory backlogs. At the same time, it is recommended to activate the automatic replenishment function in advance to enjoy discounts.

3. Diversification of logistics channels:

In order to reduce dependence on Amazon's single logistics service, sellers are advised to consider diversified logistics solutions. As a professional international order fulfillment service provider, Chinadivision provides flexible warehousing, transportation and logistics optimization solutions to help sellers reduce logistics costs.

How to effectively deal with rising costs?

Select flexible fulfillment models, achieve efficient management through reasonable planning of warehousing and transportation, and avoid additional expenses caused by storage time or warehousing rate adjustments.

An efficient cross-border logistics network can reduce dependence on AWD, optimize transportation costs, provide more cost-effective cross-border delivery solutions, and ensure that goods arrive at their destination safely and quickly.

Customized warehousing services allow sellers to choose temporary storage or bulk warehousing services according to goods demand, so as to flexibly deal with inventory pressure and avoid additional costs caused by long-term storage.

Automated order processing systems can reduce manual operation costs and help sellers further control costs and improve operational efficiency through accurate and efficient fulfillment processes.

Chinadivision's logistics solutions

In the face of Amazon's upcoming fee increases, as a professional international order fulfillment service provider, Chinadivision recommends that Amazon sellers adopt the following strategies to reduce cost expenditures and consider handing over order fulfillment to us.

Evaluate inventory strategies

Re-evaluate inventory levels and avoid overstocking to reduce storage costs. Use our smart warehousing solutions to dynamically adjust inventory based on sales data to optimize costs.

Optimize logistics channels

Consider using Chinadivision's diversified logistics channels. We offer more competitive transportation costs and can choose the most appropriate transportation method based on the characteristics of the goods and the destination. Reduce single transportation costs and improve logistics efficiency through our centralized shipping services.

Take advantage of preferential rate plans

For eligible sellers, consider taking advantage of Amazon's smart warehousing rate discounts, but ensure that the automatic replenishment rate and inventory level requirements are met. Evaluate whether to use Amazon's supply chain smart managed service (AMS) to enjoy additional warehousing and transportation fee discounts. However, the cost-effectiveness of this service should also be considered.

Turn to third-party order fulfillment services

Consider handing over order fulfillment to third-party service providers such as Chinadivision. We can provide one-stop services, including warehousing, picking, packaging, shipping and after-sales services. Through our services, sellers can save on warehousing and handling costs while enjoying more flexible logistics solutions and faster delivery speeds.

Strengthen cost control and budget management

Develop a detailed cost control plan, including costs in various aspects such as logistics, warehousing, advertising and operations. Use our cost analysis tools to track and predict costs so that you can adjust your strategy in a timely manner.

Establish a long-term partnership

Establish a long-term partnership with Chinadivision and enjoy more favorable prices and services. We will provide customized solutions to meet the specific needs of sellers and jointly respond to market changes.

In the face of the adjustment of Amazon AWD fees, sellers need to actively optimize their operating strategies while considering diversified logistics solutions. Chinadivision has rich experience and advanced technology platforms to provide Amazon sellers with efficient, reliable and cost-effective order fulfillment services. We will ensure the safe transportation and timely delivery of goods, while helping sellers reduce expenses and improve customer satisfaction. Please trust us to transport your goods and let us work together to create a better future!