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Inventory & operations

Amazon AWD vs FBA: what AWD is and when to use each

Amazon Warehousing and Distribution is upstream bulk storage that refills FBA as you sell. Keep near-term stock in FBA and the bulk behind it in AWD.

MT
CTO at Nova Analytics

Sep 14, 2026 ยท 3 min read

What AWD is

AWD is a second Amazon warehouse that sits one step behind the fulfilment centres. Stock in AWD is not sellable on its own: it feeds FBA. You send pallets in, Amazon holds them, and units transfer into fulfilment centres so your listings stay in stock.

FBA and AWD are therefore not alternatives. FBA is the shelf the customer buys from. AWD is the stockroom behind the shelf. The only real decision is how much of your cover sits in each.

What sellers actually do with AWD

AWD is still a minority setup, and the sellers who use it tend to commit pallet quantities rather than dabble.

If your days of stock only counts sellable FBA units, an AWD seller looks close to a stockout when there is cover a transfer away.

When AWD earns its place

AWD works when demand is predictable enough that bulk will sell, when you buy in pallet quantities, and when FBA capacity is the thing limiting how much you can hold. Slow-moving, bulky items with steady demand are the clearest fit, because they are the most expensive units to leave in a fulfilment centre.

There is a reliability argument too. Stock already inside Amazon's network arrives complete more often than stock trucked in from outside it, which matters when a shortfall means a stockout in peak.

When to keep everything in FBA

New products with no demand history, low-volume SKUs, anything that needs relabelling or frequent packaging changes, and anything you might want to pull back out. AWD is designed to feed FBA, so it is not a flexible 3PL: getting units back out to anywhere else is not what it is for.

The other reason to stay put is speed. Every layer you add is another lead time between you and a sale, and a transfer you forgot to request is the same as no stock at all.

What AWD actually costs

AWD bills on three lines: storage, processing and transportation.

So compare AWD and FBA on total cost per unit moved, not on cost per cubic foot stored. A unit that sits in AWD for a month and then transfers has paid storage once and handling twice.

AWD in Europe

AWD started in the United States and opened in the UK, Germany, France, Italy and Spain on 20 August 2026, with the same three cost lines: storage, processing and transportation. The detail is in our report on the European AWD launch.

Frequently asked questions

Is AWD cheaper than FBA?

On storage per cubic foot, yes, which is why it is sold that way. On the total bill it is less clear cut, because AWD also charges processing and transportation. Compare cost per unit moved.

Does AWD stock count as available to sell?

No. Only units in fulfilment centres are sellable. AWD units become sellable after a transfer into FBA, which is why a days of stock figure that ignores AWD reads far shorter than your real cover.

Is AWD available in Europe?

Yes. Amazon opened AWD in the UK, Germany, France, Italy and Spain on 20 August 2026, after running it in the United States first.

Can I ship from AWD to a 3PL?

Not directly. AWD exists to feed FBA, so treat it as upstream Amazon storage rather than as general-purpose warehousing.

See your AWD stock in Nova

Nova's inventory table shows AWD stock and inbound to AWD as their own columns, each with a running total and its own days of stock, for the US marketplace. So the cover sitting upstream is counted rather than guessed.

The P&L carries AWD storage, processing and transportation as separate fee lines per SKU, which is what makes the cost comparison above possible on your own catalogue.

Nova inventory table with AWD stock and inbound to AWD columns next to FBA stock, each with days of stock
AWD stock and inbound to AWD, with their own days of stock.
See Nova's inventory management

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