UPDATED: Amazon Warehouse and Distribution AWD Fees
Effective April 1, 2025, Amazon will change how the base rate is applied and will introduce new smart storage and Amazon managed rates. Starting on this date, the 2024 rates will be discontinued and the following AWD fee tiers will apply by SKU:
Base rate: The base rate applies when you manually manage replenishment to fulfillment centers. It is no longer determined by the inbound carrier method.
Smart storage rate: The smart storage rate applies to a SKU when you use AWD auto-replenishment to move inventory of that SKU from AWD to FBA. To qualify for this rate, your SKU must meet the criteria below. Amazon will calculate these metrics on your behalf and apply the smart storage rate automatically when you meet the criteria.
Auto-replenishment ratio: At least 70% of your SKU's inventory must be sent to fulfillment centers through AWD auto-replenishment in the preceding 90 days.
Combined historical days of supply: Your SKU's inventory level across AWD and FBA must be equal to or greater than 70 days relative to historical demand. To determine this, Amazon calculates the average daily inventory across both AWD and FBA, and Amazon divides that number by the average shipped units from FBA. Amazon evaluates this metric over two periods: the last 30 days (short-term) and the last 90 days (long-term). Amazon selects the higher value of the two periods and determine whether it is equal to or greater than 70.
Amazon assesses your SKU’s eligibility on the 25th of each month for the following month’s charges. For example, for charges to be assessed in June, Amazon will confirm on May 25 if your SKU has met the criteria.
Amazon managed rate: When you choose the Supply Chain by Amazon Managed Service for your SKU, an Amazon managed rate applies that includes 20% off AWD storage fees for that SKU and 10% off AWD transportation fees from AWD to FBA for that SKU. For details, go to Amazon Managed Service.
FBA Fee Adjustments Starting April 1, 2025
Sellers using AWD auto-replenishment or Amazon Managed Service will see additional benefits:
FBA Aged Inventory Surcharge (181–365 days) will not apply if at least 70% of the SKU's inventory is auto-replenished to FBA via AWD.
FBA Low-Inventory-Level Fee will apply if a seller places a limit on the number of units eligible for AWD auto-replenishment.
Transitioning to the New Fee Structure
To ease the transition, Amazon will split 2024 inbound processing fees into three equal monthly installments (March, April, and May 2025). Sellers with existing AWD inventory as of March 31, 2025, will be charged 50% of the 2024 processing fee before switching to the new system.
Example Fee Transition Calculation
If a seller has 5,000 boxes in AWD at the 2024 rate of $2.50 per box, the transition fee breakdown is:
Total processing fee: 5,000 x $1.25 = $6,250
Monthly installment: $2,083.33 per month (March, April, May 2025)
Final Thoughts
These AWD fee adjustments incentivize auto-replenishment and managed inventory solutions, allowing sellers to optimize costs and maintain consistent stock levels. By leveraging Smart Storage Rates and Amazon Managed Service, businesses can significantly reduce storage and transportation expenses.
For more details, sellers should review AWD reports in their Seller Central dashboard and plan their inventory strategies accordingly.