Amazon AWD service advantages and fee analysis and detailed explanation of the platform’s overall charging mechanism

Amazon Warehousing & Distribution (AWD) provides advanced warehousing solutions for US sellers. By combining third-party cross-border logistics and Amazon’s cross-border logistics service (AGL), sellers can efficiently send and store goods to the AWD warehouse close to the FBA warehouse, ensuring sufficient inventory in the FBA warehouse and avoiding out-of-stock problems due to capacity constraints. .

AWD warehouse automatic replenishment function

AWD can automate inventory replenishment to FBA warehouses, so sellers no longer need to worry about product delays or returns due to insufficient FBA warehouse space. As long as there is sufficient inventory in the AWD distribution center, the system can automatically complete the replenishment process to ensure that the seller’s products are always available for sale on the Amazon platform.

Global inventory monitoring and management

With AWD’s services, sellers can obtain a comprehensive inventory monitoring system that not only covers offline logistics and warehousing, but also connects to online logistics systems to form a powerful order fulfillment network. This enables sellers to track inventory status and monitor shipment progress in real time.

Overview of the advantages of AWD services

• Official Guarantee: As an official product launched by Amazon, its stability and reliability are fully guaranteed;
• Flexible cooperation model: Supports a variety of cross-border logistics solution options, including but not limited to third-party service providers and Amazon’s own AGL;
• Front-end warehouse reserve: ensures that the capacity requirements of the FBA warehouse are met;
• Inventory management convenience: Provides automatic or manual replenishment options to meet the needs of different sellers;
• High cost transparency: Adopt a “pay-as-you-go” billing model, charging only according to the actual space occupied, with no hidden fees.

Unsuitable product types

It is worth noting that not all types of goods are suitable for AWD services. For example, items that cannot be clearly classified, are large, fall into the hazardous goods category, require temperature control, are perishable, or have special packaging requirements may not be suitable for this service.

Charge details

AWD adopts a transparent and simple “pay-as-you-go” pricing strategy with the following fee structure:

• Upstream warehousing fee: Billed monthly, based on all inventory stored by the seller in the AWD warehouse. Fees are calculated based on actual cubic feet of space used per day and will be reflected in the seller’s account at the end of the following month;
• Processing Fee: Covers all activities involving the processing and transportation of goods within the AWD network. When the goods leave AWD and are sent to the FBA warehouse, the relevant fees will be displayed on the seller’s account;
• Transportation fee: Incurred when goods are transferred from AWD to FBA warehouse, priced in cubic feet based on the volume occupied.

In addition, Amazon, as the world’s leading e-commerce platform, has a series of regular charges applicable to all sellers in addition to the above-mentioned fees specific to the AWD service. These costs include, but are not limited to:

• Platform fee: Professional sellers are charged a fixed monthly fee of US$39.99, while individual sellers are charged a standard fee of US$0.99 per item sold;
• Sales commission: It is charged according to a certain proportion of the sales amount according to different product categories;
• Logistics fees: Based on factors such as product size and weight, corresponding delivery fees will be charged;
• Warehouse fee: Sellers who choose FBA service also need to pay additional monthly inventory storage fees and long-term storage fees;
• Settlement fee: There will be special settlement fees for specific types of media products, such as books, audio-visual products, etc.;
• Other expenses: Including indirect expenses such as commodity purchase costs, logistics expenses, and operating costs.

In summary, although Amazon provides sellers with rich and practical services, while enjoying these conveniences, you also need to have a clear understanding of its charging standards in order to better plan and manage costs and improve yourself. competitiveness.