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Inventory & operations

Should I split Amazon inventory across multiple 3PLs?

Compare one upstream facility with multiple 3PLs using freight cost, delivery time, direct-ship volume, and compliance requirements. Add locations only when the measured benefit exceeds the added complexity and cost.

MT
CTO at Nova Analytics

Jul 26, 2026 ยท 3 min read

When one warehouse is enough

Under $5M annual Amazon revenue, one AWD or 3PL near your primary port and FBA cluster is almost always the right answer. Simple, cheap, easy to reconcile.

When to add a second location

Meaningful off-Amazon D2C volume that needs coastal split. Cross-border overflow (US and CA). Bonded warehouse for import duty deferral. Redundancy on hero SKUs.

Frequently asked questions

Does AWD count as a warehouse?

Yes. AWD is Amazon-run upstream storage that transfers into FBA when you request replenishment.

Is a bonded warehouse worth it?

For high-duty categories with slow sell-through, yes. Duty deferral is real cash flow.

Can I use Walmart WFS as a second warehouse?

For Walmart orders only. It cannot fulfill Amazon orders.

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