AWD vs FBA: when should I use each?
AWD (Amazon Warehousing & Distribution) is upstream bulk storage that transfers to FBA on demand. Use FBA for the 4 to 8 weeks of forward cover you actually need. Use AWD for the bulk pallet buffer behind it. AWD storage is meaningfully cheaper per cubic foot than FBA.
The right split
FBA: 4 to 8 weeks of cover on each SKU based on velocity. AWD: 8 to 20 weeks of pallet-level backup that auto-transfers when FBA drops below a set threshold.
Why the split saves money
AWD storage per cubic foot is roughly a third to half of FBA storage. Keeping bulk out of FBA also protects your storage utilization ratio and reduces aged inventory risk.
Frequently asked questions
Does AWD charge inbound placement fees?
No. AWD uses its own inbound and outbound pricing.
Is AWD available in Europe?
AWD rolled out in the US first and has been expanding. Check current availability for your marketplace.
Can I ship from AWD to a 3PL?
Not directly. AWD is designed to feed FBA.
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Should I split Amazon inventory across multiple 3PLs?
For most sellers, one AWD or 3PL upstream of FBA is enough. Multi-3PL adds complexity and freight cost that rarely pays back unless you have coast-to-coast direct-ship volume outside FBA, or a specific compliance need like a bonded warehouse for imports.
What is the reorder point formula for Amazon FBA?
Reorder point = (average daily sales x lead time in days) + safety stock. Lead time includes production plus transit plus FBA check-in. Safety stock covers demand and lead-time variability. If any of those numbers is wrong, you either stock out or bury cash in overstock.
What are Amazon FBA inbound placement fees?
Inbound placement fees are charged when you send inventory to fewer FBA fulfillment centers than Amazon prefers. Sending to more locations is free or cheaper, sending to one location costs more per unit. Amazon uses the fee to push sellers toward distributed inbound.
How do I plan Amazon FBA inventory for Q4?
Place your Q4 hero SKU POs by early July, second wave by late August, and a small third wave for post-Cyber Monday replenishment by mid-October. Amazon FC intake slows in November and early December, so units that miss check-in windows sit outside FBA during the peak.
How do I get around Amazon FBA restock limits?
Restock limits are set at the account level based on your inventory performance and sales velocity. The three levers that actually raise them: sell through existing stock, improve IPI score, and use AWD or Multi-Channel Fulfillment to prove downstream velocity. Requesting exceptions via case is rarely productive.