Amazon Launches Long-Term Warehousing Solution for Seller To Overcome Supply Chain Challenges

Amazon is introducing a new storage option for sellers to warehouse products in bulk before sending them to fulfillment warehouses.

The new service will be known as Amazon Warehousing & Distribution (AWD) and addresses critical supply chain challenges to help sellers grow and manage their business while significantly cutting costs.

AWD is also one of the many new solutions Amazon will share with its seller community at Amazon Accelerate, the company’s annual seller conference on September 14-15.

“For many businesses, managing logistics and operations—such as inventory storage, distribution and order fulfillment—is a source of complexity and cost,” Amazon said in its announcement.

“These challenges have only been amplified in recent years as constrained supply chains caused global inventory backups and fulfillment challenges.”

“In fact, a recent survey of US Amazon sellers showed the three biggest pain points for sellers in upstream warehousing and distribution operations are high prices for storage, complicated fee structures, and insufficient storage capacity,” the company added.

Amazon AWD Fully Integrated With Amazon FBA

A simple, one-click enrollment enables sellers to send their inventory to Amazon Distribution Centers and significantly reduce storage costs while removing complex pricing schemes, common with similar solutions the company further explained.

Sellers using AWD can also consolidate their global inventory, which they can then view and manage on Seller Central, simplifying their operations with one pool of inventory.

“As an Amazon seller for over 10 years, we are super excited about the Amazon Warehousing & Distribution service as it’s something that sellers have been seeking for a very long time,” said Harris Chan, senior business manager at AmaMax. “Automated replenishment and master case handling is the key of the program,” added Chan.

In 2023, sellers will be able to use AWD to send their inventory to any location, including to wholesale customers or brick-and-mortar stores.

Amazon has not provided pricing details or sign-up information yet for Amazon AWD in Seller Central. More information is expected at Amazon Accelerate later this month.