Amazon has recently updated the eligibility criteria for its Amazon Warehousing and Distribution (AWD) program, now allowing perishable products with expiration dates that are at least 185 days away from the inbound shipment creation date.
This strategic update is a significant development for sellers utilizing AWD for long-term storage, particularly those dealing in perishable goods such as dietary supplements and non-refrigerated packaged foods.
Understanding the Impact of the New AWD Criteria
This enhancement of Amazon Warehousing and Distribution (AWD) marks a significant shift in its capabilities. AWD is designed for long-term storage, serving primarily to replenish inventories at Amazon’s Fulfillment by Amazon (FBA) centers.
By incorporating perishables into its eligible categories, AWD now allows sellers to manage a wider variety of inventory. This strategic move not only broadens the utility of AWD but also aids sellers in achieving greater storage efficiency and cost reduction, enhancing overall business logistics.
Key Benefits for Sellers Using AWD
Enhanced Inventory Management: Sellers can now stock a broader range of products, including perishables. This capability is essential for managing inventory lead times and smoothing out demand fluctuations.
Cost Reduction: Storing perishables in AWD can be more cost-effective compared to other storage solutions, especially since AWD offers competitive pricing structured around Amazon’s extensive logistics framework.
Streamlined Operations: By using AWD to replenish FBA, sellers can keep their products continuously stocked on Amazon without the hassle of frequent, direct restocking, with high inbound placement fees. This system ensures that inventory levels are maintained efficiently, reducing the risk of stockouts and overstocking.
Conclusion
The inclusion of perishables within AWD’s scope marks a critical enhancement in Amazon’s logistical offerings. For sellers, this means greater flexibility in managing a diverse range of products through Amazon’s robust system.
Amazon Storage Pros is here to help you adapt to these changes and ensure your logistics operations run smoothly. Book your storage costs analysis call now to find out how we can help.
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