I’m curious if they’re more profitable and better at handling inventory compared to FBA. I’m also wondering if AWD offer additional services like applying FNSKU labels, bundling, bubble wrap, and inventory inspection.
AWD is useful if you are importing big quantities via AGL. Their charges are better than the regular Amazon warehouse charges in terms of storage and long-term inventory surcharge.
Here’s what one of my friends said, for your information:
Amazon introduced a new fee which is low inventory fee which is insane, the only way to avoid it is using AWD. If 70% of your stock is in AWD they won’ t charge you that.
Even if you are low inventory.
Also even if you do AGL to FBA amazon still charge you placement fee but they smartly built it into the price so that naive people won’ t be able to tell. If your customer said “but I don’ t pay placement fee when i use AGL to FBA” tell them they do pay it but they pay just a bit less.
Tell them the way to know how much they are paying, is to get a quote to FBA with AGL and then get another quote to AWD with AGL for me even though both warehouses were on the west coast, but shipping to AWD was $0.23 cheaper per unit for me. If both warehouses are west-coast the cost should be the same. So that $0.23 lower price is because Amazon builds the placement fee into the AGL price when you ship to FBA. But if you a freight forwarder wanted to ship to FBA they would charge me $0.49. Per unit. Which is why you can’ t compete with AGL direct shipment to FBA but you can compete with AGL if products are shipped to AWD
I would advise you not to waste your time. I spent hours signing up, looking forward to send my inventory into AWD. Only to find out (at the very last step) that apparel, jewelry, watches (and also many other categories) are not eligible (99% of my inventory).
AWD can only be used for large, bulky items.