Amazon Highlights AWD to Help UK Sellers Reduce US Logistics Costs

Amazon Highlights AWD to Help UK Sellers Reduce US Logistics Costs

Existing warehousing and distribution solution offers UK sellers an efficient way to expand into the US market


By
ChannelMAX Staff Writer

Dec-2024#02


Amazon UK has released an important update on Seller Central, reminding UK-based sellers of the benefits of Amazon Warehousing and Distribution (AWD) for those looking to sell in the US store. Launched in 2022, AWD is a low-cost bulk storage and logistics solution that enables sellers to replenish fulfillment centers and other distribution channels in the United States, significantly reducing logistics costs and simplifying supply chain management.

What is Amazon Warehousing and Distribution (AWD)?
AWD is a service provided by Amazon that offers sellers affordable bulk storage and a streamlined logistics solution within the US. It allows sellers to store products in Amazon's warehousing facilities and manage inventory more efficiently. This service is particularly beneficial for international sellers who face challenges with storage costs and inventory management when selling overseas.

Also Read: Amazon Expands AWD Eligibility to Include Shoes, Offering New Opportunities for Sellers


Key Benefits of AWD for UK Sellers
UK sellers can take advantage of several benefits by utilizing AWD:
Low-Cost Storage: AWD offers low-cost bulk storage options, helping sellers save on fulfillment expenses. The pricing covers Fulfilment by Amazon (FBA) inventory placement, so there's no separate charge for this service.
Automatic Replenishment: Amazon monitors inventory levels in Prime-ready US fulfillment centers. When stock levels are low, AWD automatically replenishes inventory, ensuring products remain in stock and within FBA capacity limits.
Flexibility: With multi-channel distribution, sellers can use a single pool of inventory to reach customers on Amazon.com and other platforms, simplifying inventory management across different sales channels.
Supply Chain Integration: Sellers can use Amazon Global Logistics and Amazon-partnered carriers to ship inventory in bulk to AWD facilities, streamlining the supply chain process and reducing complexities associated with international shipping.

Why Amazon is Reminding UK Sellers Now
While AWD has been available since 2022, Amazon's recent update on Seller Central serves as a timely reminder for UK sellers about the advantages of leveraging AWD to expand into the US market, especially ahead of peak shopping seasons. By highlighting the benefits and ease of integrating AWD into their current operations, Amazon aims to encourage more UK sellers to tap into the lucrative US market with reduced logistics costs and improved efficiency.

No Additional Fees for FBA Sellers
For sellers already using Fulfilment by Amazon (FBA), there's even more incentive to utilize AWD. There is no additional enrolment fee to join the AWD programme. Sellers are only charged a transportation fee when sending inventory to Amazon's warehousing and distribution facilities, and there are no extra costs during the holiday season, which is typically a peak time for sales.

How to Get Started with AWD
UK sellers interested in taking advantage of AWD can sign up through their Seller Central account. By navigating to the Amazon Warehousing and Distribution section, sellers can find more information and enroll in the service. Additionally, those looking to expand their reach can visit the "Sell Globally" page on Seller Central to begin selling in the US store.

Amazon's emphasis on AWD is a significant opportunity for UK sellers aiming to expand into the US market. By reducing logistics costs and simplifying supply chain management, AWD makes it more accessible for sellers to reach new customers across the Atlantic. This update on Seller Central is a prompt for UK sellers to consider leveraging AWD to grow their business in the US, taking advantage of the existing service that streamlines international selling.

Also Read: Amazon Introduces New Flexibility in Auto-Replenishment for Sellers Using AWD to FBA

Disclaimer:
Amazon is the registered trademark of the e-commerce brand. 

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