AWD: Warehouse Wizardry or Inventory Invisibility Cloak?

It sounds like a dream: Amazon stores your inventory, ships it to FBA, and handles the dirty work. But dreams can turn into nightmares—fast.

📖 Real Story: Miguel Got Burned—So You Don’t Have To

Miguel sells premium yoga mats through his Shopify store and Amazon. He’s no newbie—doing about $30k/month in sales.

Tired of juggling a 3PL, tracking freight forwarding, and babysitting warehouse managers, he made what felt like a smart move…

He switched to Amazon’s Warehousing & Distribution (AWD) service.

Amazon promised:

• Low-cost bulk storage

• Automatic restocking to FBA

• Nationwide fulfillment reach

What could go wrong?

Well… plenty. And fast.

🔢 What Is AWD—and Where Does It Go Off the Rails?

On paper, AWD seems like a clean upgrade from your current 3PL:

✅ You ship inventory to Amazon’s upstream warehouse
✅ They store it long-term (cheaper than FBA)
✅ They drip-feed inventory to FBA as needed
✅ You stay “in stock” with less guesswork

But here’s the stuff they don’t put in the brochure:

❌ You lose control over when, how, and where inventory gets sent to FBA
❌ No custom kitting, labeling, or inserts allowed
❌ Shipping times to FBA can lag by 7–10+ days
❌ Inventory visibility is vague at best

Miguel learned this the hard way. In the middle of Q4 (yes, Q4), his hot seller went “out of stock” on Amazon for nine days because AWD hadn’t transferred in time.

He called it the most expensive “convenience” he’d ever paid for.

🎯 Here’s What You Need to Know—Before You Make the Switch

If you’re considering ditching your 3PL for AWD, ask yourself these first:

1. Do you need flexibility?
AWD doesn’t allow custom packaging, batching, or kitting. If you run promotions, insert coupons, or bundle, you're out of luck.

2. Do you rely on fast inventory turns?
AWD doesn’t move fast. Amazon decides when to restock your FBA inventory, and delays can cost you the Buy Box—and your sanity.

3. Do you track your inventory closely?
AWD’s reporting is… let’s call it “mysterious.” You often won’t know where your inventory is until it’s too late.

4. Do you sell on Shopify or other channels?
AWD is (currently) Amazon-first. Multi-channel fulfillment? Good luck unless you're paying for that separately.

💡 So, Who Is AWD Actually Good For?

AWD can make sense if:

• You sell large volumes only on Amazon

• You don’t need custom packaging or kitting

• You have thick margins to eat surprise fees

• You want a hands-off setup and trust Amazon fully

But if you value:

✅ Control
✅ Speed
✅ Flexibility
✅ Transparency

…then your trusty 3PL might still be the better play.

📦 Miguel’s Takeaway (And Mine):

The warehouse might be smarter—but it’s still Amazon’s warehouse, not yours.

If you want to build a brand, not just a product listing, you need control. AWD trades that control for convenience. And that trade might not be worth it.

💬 Repeatable Proverb:

🗣️ Final Word from Coach Andy

Look, I get it. We all want fewer headaches.

But don’t jump into AWD just because it sounds easier. Test it. Tread carefully. Know what you’re giving up—because once Amazon has your inventory, getting it back isn’t always easy… or cheap.

🚫 Convenience can cost more than chaos.

Until next time, keep clicking smart—

Andy Splichal
Founder & Managing Partner of True Online Presence & Author of the Make Each Click Count Book Series

P.S. You’ve got products to sell and a business to scale. If PPC feels like a second job (or a black hole for your budget), let me handle it. I’ve scaled dozens of FBA brands profitably. 💬 Book a quick discovery call — I’ll show you what’s possible.

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