Amazon launches long-term warehousing solution for seller to overcome supply chain challenges

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

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

AWD is also one of many new solutions that 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 have led to global inventory backups and fulfillment issues.”

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

Amazon AWD fully integrated with Amazon FBA

A simple one-click registration allows sellers to send their inventory to Amazon fulfillment centers and significantly reduce storage costs while eliminating complex pricing schemes common to similar solutions, the company explained.

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

“As an Amazon seller for over 10 years, we are thrilled with the Amazon Warehousing & Distribution service as it is something that sellers have been looking for for a very long time,” said Harris Chan, senior business manager at AmaMax. “Automated replenishment and master case management is key to the program,” Chan added.

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

Amazon has not yet provided pricing details or listing information for Amazon AWD in Seller Central. More information is expected on Amazon Accelerate later this month.

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