(Source: Amazonofficial press release）
A “pay-as-you-go” service, AWD allows third-party sellers on the platform to ship their inventory to the company’s “dedicated new bulk inventory warehousing and automated distribution facility.”
In addition, sellers can choose to integrate their upstream inventory into Amazon’s delivery network, essentially outsourcing inventory allocation to Amazon to ensure that products are “at the right place at the right time.”
Initially, AWD will temporarily allow sellers to host and distribute inventory across the FBA network.
But starting in 2023, customers will also be able to send inventory to ‘anywhere’ — including wholesale customers and brick-and-mortar stores.
Gopal Pillai added:
Amazon Warehousing and Fulfillment Services resolves key supply chain challenges for platform sellers, helping them grow and manage their businesses with confidence while significantly reducing operating costs.
In addition, with this simple pay-as-you-go service, sellers can also get rid of the time-consuming and cumbersome process of moving inventory from upstream facilities to Amazon fulfillment centers.
Finally, while Amazon hasn’t disclosed further details about the new service, an offer shared by one marketplace seller shows that AWD will involve automatic replenishment and oversized handling, as well as an option for sellers to consolidate their global inventory.