How to Reduce Amazon Placement Fees Using AWD 🚀
In the last 12 months, many sellers have faced rising FBA placement fees, especially those shipping between 500 to 4,000 units in a single shipment. If you’re sending inventory to multiple fulfillment centers—often up to five locations—you've likely seen costs ranging from $80 to $580 per placement.
For sellers shipping just 100 units per month, this isn’t a major issue. However, for those moving 1,200 to 5,000 units monthly, these costs add up quickly, eating into margins and creating logistical constraints.
Meet Amazon AWD – Discover More Below! 👇
Amazon’s Strategy: Placement Fees & AWD
When Amazon introduced placement fees, it also ramped up promotions for Amazon Warehousing & Distribution (AWD). Coincidence? We don’t think so. At David Ricardo, we believe this was a strategic move to encourage sellers to shift to AWD.
For our clients, we've conducted in-depth cost analyses and found that using AWD can significantly lower expenses by:
✅ Reducing placement fees
✅ Leveraging Amazon’s logistics to move inventory instead of relying on a 3PL
How to Maximize Savings with AWD 🛠️
To succeed with AWD, follow these key strategies:
✔️ Use UPCs instead of FNSKUs – This avoids relabeling costs.
✔️ Ship in master cartons – Consolidate units to streamline shipping.
✔️ Use Amazon Logistics for pickup – If you use your own carrier, AWD will charge inbound fees.
✔️ Ship directly from China to AWD – Simplifies supply chain management. (warning for Dutys/classifications)
✔️ Automate AWD-to-FBA transfers – There’s an AWD setting to seamlessly send inventory from AWD to FBA.
What Happens After Your Inventory Arrives at AWD?
Once your inventory reaches AWD, you have two options:
1️⃣ Send inventory to FBA for fulfillment.
2️⃣ Shipmaster cartons (case packs) directly to businesses for bulk sales outside of amazon.
Below, we’ve included a screenshot to illustrate the process.
Understanding AWD Storage Costs 💰
Let’s talk numbers. For 1,200 units (approximately 1.8 cubic meters), storage costs around $29.99 per month. Your exact AWD costs are in the AWD Cost Report within your Amazon Seller Central account.
Final Takeaway
If you're shipping 3,000+ units or managing over 5 pallets of inventory, consider sending stock into AWD. The cost savings on placement fees, coupled with Amazon’s logistics support, can streamline your supply chain and improve profitability.
Plan for Prime Day Now! 📅
Prime Day is only a few months away. Plan ahead and inbound early to Amazon Warehousing and Distribution (AWD) with Ship to AWD. Inventory received in AWD by May 15 will guarantee it is Prime-badge ready in the Amazon store for Prime Day.
Leverage our Ship to AWD low-cost bulk storage solution to streamline your cross-border transportation, storage, and automatic replenishment into Amazon fulfillment centers (FCs) from China to the US.
📢 If you need support, visit www.getricardo.com
