Amazon is quietly inviting sellers to a new unlimited warehouse storage program called 'AWD,' signaling a big new move into the broader logistics market
AWD gives unlimited storage space at a lower rate to sellers to store slower-moving inventory.overbuilt warehouses
In recent weeks, Amazon has been inviting some sellers to a new beta program called"Amazon Warehousing & Distribution," according to a copy of the invitation seen by Insider. AWD uses warehouses designed to store slower-moving products that need long-term storage. Sellers typically keep this inventory in their own warehouses or other facilities before shipping them to Amazon's fulfillment centers that have stricter storage limits and faster turnover requirements.
An Amazon spokesperson didn't respond to a request for comment. VP of Distribution and Fulfillment Solutions Gopal PillaiThe launch of AWD signals Amazon's ambition to handle a bigger piece of the fulfillment process. Amazon's current warehouse network largely caters to fast-turning, Prime-eligible products and charges higher fees for long-term storage of inventory that doesn't move quickly.
"They are bringing this [AWS] idea to their supply chain services," Watson said."I would predict Amazon over time introduces more tiers of warehouse storage."
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