Title: Maximize Your Savings with Amazon AWD’s Auto-Replenishment and Low-Cost Storage Options

Are you a seller looking to streamline your inventory management and reduce storage costs? Amazon’s Warehouse Distribution (AWD) service offers an efficient, cost-effective solution, especially for those using Amazon FBA. Starting April 1, 2025, significant changes to Amazon AWD’s auto-replenishment system and new seller benefits will make it easier than ever to manage your inventory. To help sellers further reduce storage expenses, Amazon will introduce a 10% AWD Smart Storage discount for maintaining adequate inventory levels, bringing storage fees down to just $0.43 per cubic foot per month. Additionally, AWD processing fees will be split into inbound and outbound charges, eliminating the previous dual-charge system and providing greater fee transparency. These changes will help simplify cost management while optimizing your business operations. Let’s break down how these updates can help you save on costs and boost your efficiency.

What is AWD Auto-Replenishment?

Amazon’s AWD system helps sellers automatically manage their inventory, ensuring Products are replenished in real-time according to demand forecasts. This process minimizes the risk of stockouts and provides significant storage cost savings. With the addition of automatic replenishment, you can rest assured that your FBA warehouses will stay stocked without needing constant manual oversight.

Key Benefits of AWD Auto-Replenishment:

• 70% Auto-Replenishment Ratio (ARR): Sellers who achieve a 70% ARR can take advantage of major cost-saving benefits, such as exemptions from certain FBA storage fees.
• Amazon Smart Storage Rates (Starting April 1, 2025): Amazon will introduce new “smart storage rates,” offering even greater savings on storage costs.
• No Aged Inventory Fees: If 70% or more of your inventory is replenished through AWD, you’ll avoid the aged inventory surcharge for products aged 181-365 days.

With these powerful benefits, AWD helps you manage your inventory effectively while reducing unnecessary costs. However, there’s a common question sellers have: What happens to storage fees when inventory moves from AWD to FBA? Let’s dive into that.

How Storage Fees Change When Moving from AWD to FBA

It’s important to understand that storage fees will change once your inventory moves from an AWD warehouse to an FBA fulfillment center. Here’s how it works:

• AWD Storage Fees: While your inventory is stored in an AWD center, you’ll enjoy discounted storage fees designed to save you money.
• FBA Storage Fees: Once your inventory is transferred to an FBA warehouse, the standard FBA storage fees will apply. This means that while AWD offers low storage rates, the cost will increase once the inventory is moved to FBA.

This is crucial for sellers to understand. While you can save on storage fees while your stock is in AWD, it’s important to plan for the standard FBA storage fees once your inventory is transferred.

Why the 70% Auto-Replenishment Ratio (ARR) Matters

The 70% ARR is a key metric in maximizing the benefits of AWD. If you ensure that at least 70% of your FBA inventory is replenished automatically via AWD, you can enjoy several cost exemptions, including:

• Aged Inventory Surcharge (181-365 days): Avoid fees for older inventory that’s been sitting too long in your FBA warehouse.
• Low Inventory-Level Fees: Don’t incur extra charges when stock levels dip too low.
• Storage Utilization Surcharge (Effective June 1, 2024): Avoid additional costs when your storage space isn’t being utilized efficiently.

Meeting the 70% threshold will help you save money and improve your profit margins, making it a valuable strategy for any seller looking to optimize their costs.

Will AWD Storage Fees Apply After Transfer to FBA?

One common concern among sellers is whether their inventory will continue to enjoy the discounted AWD storage fees once it’s transferred to FBA. Unfortunately, AWD’s discounted storage rates only apply while your inventory is stored in an AWD facility. Once transferred to FBA, the standard FBA storage fees will apply, even if your inventory meets the 70% ARR requirement.

This means that while you can save on storage with AWD, it’s important to understand that once the inventory is in FBA, you’ll need to factor in FBA’s standard storage fees for the respective size and volume.

Plan Ahead for Future Cost Savings with New AWD Rates

Starting April 1, 2025, Amazon will introduce “smart storage rates” and split processing fees into inbound and outbound charges. These changes could have a significant impact on your storage costs, so it’s important to stay ahead of these updates and plan accordingly.

Regularly check your status to ensure you’re benefiting from AWD’s auto-replenishment and cost-saving features. The FBA Surcharge Waiver Status Report will help you track whether your inventory meets the 70% ARR threshold and make sure you’re not incurring any unnecessary fees.

Why Choose AWD for Your Amazon Business?

AWD offers an unbeatable combination of low storage fees and efficient inventory management, making it an excellent choice for sellers who want to optimize their operations. If you’re looking for ways to reduce your overall costs while improving your inventory control, AWD could be the solution you’ve been waiting for. And don’t forget, AWD also offers significant savings when combined with Amazon FBA for fulfilling your customer orders.

Get Started with AWD’s Low-Cost Storage and Auto-Replenishment Today!

AWD’s auto-replenishment system and low-cost storage options make it easier than ever to run your Amazon business. If you’re ready to take advantage of these incredible benefits and improve your inventory management, get in touch with us today!

Contact Us now to learn more about how AWD can help you reduce storage costs and how to ship goods to AWD warehouse. We’ll guide you every step of the way!