Amazon AWD vs. FBA: Key Differences and Which Fulfillment Option Is Best for You

Since the launch of Amazon AWD vs. FBA, Amazon has increased several fees associated with its traditional Fulfillment by Amazon (FBA) service. This has led many sellers to question whether Amazon is encouraging a shift to AWD.

While FBA offers a comprehensive fulfillment solution, AWD’s significantly lower bulk storage costs make it an attractive option for retailers. But is it truly better than traditional FBA?

In this guide, we’ll explore the differences between Amazon AWD and FBA, break down which service is better suited for various scenarios, and examine real reviews from AWD users.

Key Takeaways

• Amazon AWD is a bulk storage solution that helps retailers save on storage and distribution costs.

• FBA is a comprehensive fulfillment solution providing third-party storage, picking and packing, and customer service for Amazon sellers.

• AWD can help sellers avoid high peak season surcharges and inbound placement fees while reducing bulk storage costs.

• AWD reviews are mixed, with some users reporting replenishment delays and missing items affecting their business.

• FBA may be a better option for businesses with fast sell-through rates and minimal storage requirements.

What You’ll Learn

• The main differences between Amazon AWD and FBA, including fees, reliability, and services provided.

• Which option is better for specific scenarios faced by Amazon sellers.

• Insights from existing customers about their experiences using Amazon AWD.

• An alternative to FBA or AWD: FulfillMe’s comprehensive suite of Amazon fulfillment services.

What Is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon (FBA) is a storage and fulfillment service that allows sellers to store inventory in Amazon’s fulfillment centers. Under the traditional FBA model, a seller sends products to an FBA location, and Amazon handles inventory management, order fulfillment, and customer service.

Whenever a customer places an order, Amazon picks, packs, and ships the goods directly to the customer. They also manage customer service tasks, such as handling returns and responding to inquiries.

What Is Amazon Warehousing and Distribution (AWD)?

Amazon Warehousing and Distribution (AWD) is a bulk storage and distribution service designed to assist sellers with managing large quantities of inventory and distributing stock across multiple sales channels. AWD helps businesses outsource warehousing operations, avoid stockouts, and automate replenishment directly into Amazon’s FBA fulfillment centers.

The AWD service comprises four main components:

1. Bulk Storage: Sellers receive dedicated storage space in an Amazon AWD warehouse.

2. Free FBA Inbound Placement: Enrolled sellers avoid the FBA inbound placement service fee.

3. Auto-Replenishment: Amazon’s system automatically ships inventory to FBA fulfillment centers when stock levels are low.

4. Multichannel Distribution: AWD distributes stored inventory to FBA centers and other distribution channels.

Amazon AWD vs. FBA: What’s the Difference?

Amazon AWD is primarily built for storing large quantities of inventory and distributing stock across multiple sales channels. FBA, on the other hand, offers a more comprehensive fulfillment service, including storage, picking and packing, customer service, branded packaging, and custom inserts.

AWD and FBA use different fee structures. AWD offers cheaper storage per cubic foot, making it more suitable for sellers with long-term storage requirements. FBA typically has cheaper base fulfillment fees but includes additional costs like low-inventory-level fees, peak season surcharges, and inbound placement fees.

How Much Does Amazon AWD vs. FBA Cost? Comparing Fees

Storage Fees

• AWD: Approximately 66% cheaper than FBA for inventory storage.

• FBA: Higher storage fees, especially during peak seasons.

Transportation Fees:

• AWD: Charges transportation fees for moving inventory from an AWD warehouse to Amazon’s fulfillment network.

• FBA: No transportation fee for traditional FBA sellers, but inbound placement fees may apply.

Processing Fees:

• AWD: Inbound and outbound processing fees are $1.35 per box.

• FBA: Standard FBA fulfillment fees apply once inventory moves from an AWD warehouse to an FBA location.

Additional Fees:

• AWD: Avoids peak season penalties and surprise expenses like inbound placement fees, low-inventory-level fees, and aged inventory surcharges.

• FBA: Subject to various additional fees, which can significantly increase total fulfillment costs.

Who Is Amazon AWD vs FBA Best For? AWD vs. FBA Summary

What Real Sellers Are Saying About Amazon AWD

While some users appreciate the cost savings associated with AWD, others have reported issues such as shipping delays and missing items. It’s important to weigh these factors when considering AWD for your fulfillment needs.

Simplify Amazon Logistics with FulfillMe

If you’re seeking an alternative to FBA or AWD, FulfillMe offers a complete suite of Amazon fulfillment services, including FBA prep, Seller Fulfilled Prime (SFP), and Fulfilled by Merchant (FBM) solutions.

FulfillMe is a technology-enabled third-party logistics (3PL) provider specializing in shipping and fulfillment solutions for e-commerce businesses. They work with B2C, B2B, and D2C brands to offer end-to-end fulfillment solutions, including storage, pick & pack, and low-cost shipping options. Additionally, FulfillMe provides a full range of FBA prep services to Amazon sellers.

With strategically located fulfillment centers, FulfillMe reduces shipping costs and delivery times by placing inventory near key markets and transportation hubs. Their dedicated support and expert team ensure that your products reach their destination efficiently, allowing you to focus on scaling your brand.

To learn more about FulfillMe’s logistics services for Amazon sellers, visit their website: FulfillMe