Amazon.com has introduced a new service to help its sellers store inventory in bulk and facilitate distribution to address supply chain issues.
Amazon Warehousing and Distribution Service (AWD) is available to sellers using Amazon’s program that allows businesses to outsource order fulfillment to the business.
Sellers can use the pay-as-you-go service to store and distribute their inventory within Amazon’s distribution network.
Amazon will also expand AWD to non-Amazon destinations in 2023. Sellers will be able to use AWD to send inventory to any location, including wholesale customers or brick-and-mortar stores – in 2023.
Amazon will share more details about this service at Amazon Accelerationits annual vendor conference which will take place on September 14 and 15.
“Amazon Warehousing & Distribution solves supply chain challenges and helps sellers grow and manage their business while reducing costs,” said Gopal Pillai, vice president of Amazon Distribution and Fulfillment Solutions.
The development comes after Amazon said it began slowing warehouse openings to control costs.
A recent survey of U.S. Amazon sellers showed that the three biggest issues for sellers in upstream warehousing and distribution operations are high storage prices, complicated fee structures, and insufficient storage capacity. .