Amazon.com has introduced a new service to assist its sellers store bulk inventory and ease distribution to tackle supply-chain issues.
Amazon Warehousing and Distribution (AWD) service is available for sellers using Amazon’s program which allows businesses to outsource order fulfillment to the company.
The sellers can use the pay-as-you-go service to store and distribute their inventory within Amazon’s fulfillment network.
Amazon will expand AWD to off-Amazon destinations as well in 2023. Sellers will be able to use AWD to send their inventory to any location, including to wholesale customers or brick-and-mortar stores — in 2023.
Amazon will be sharing more details about this service at Amazon Accelerate, its annual seller conference taking place September 14-15.
“Amazon Warehousing & Distribution addresses supply chain challenges and helps sellers grow and manage their business while cutting costs,” Gopal Pillai, vice president of Amazon Distribution and Fulfillment Solutions, said.
The development comes after Amazon said it has started slowing warehouse openings to rein in costs.
A recent survey of U.S. Amazon sellers showed the three biggest pain points for sellers in upstream warehousing and distribution operations are high prices for storage, complicated fee structures, and insufficient storage capacity.