AWD Integration
To begin with AWD Integration, Amazon should be the Seed Marketplace in order to proceed.
To enable this integration, we have added a setting on the Marketplace Setting Page as per the screenshot below. Once the user enables the setting, AWD will start importing inventory and shipments.
Note on products with an expiration date: currently expiry-date products are not supported by the AWD APIs. Any inbound shipments to AWD with expiry-dated products will not proceed. AWD expects support for expiry-dated products in their APIs later this year or early Q1'25.
How to create a shipment for AWD using SKUPREME:
- Select AWD storage provider as destination (If the user doesn’t have any AWD location yet then our system generates the initial storage provider to create the first shipment with AWD storage provider under the name “Amazon AWD”).
- After the shipment is created the user can now enter the ship date and tracking information to submit to Amazon.
Take a look at this video.
Monitoring your shipments to AWD:
1. We can monitor the shipments to AWD from the Shipments section and filter by status. To navigate to the Shipments section, click on Supply Chain > Shipments at the left.
Viewing your AWD inventory:
1. User can view their inventory on the Storage Provider details page.
Viewing your automated AWD replenishments to FBA:
1. User can view their automated AWD replenishments to FBA on the Shipment page or the SCM dashboard.
You should filter by origin and select the AWD storage provider name:
How to track AWD shipments & tracking AWD shipments automatically sent to FBA:
-> Once the AWD setting is enabled we will able to sync all AWD shipments and the user will be able to track them in the shipment dashboard and page.
Why AWD?
- It offers a competitive storage cost vs. 3PL providers and a drastically lower storage cost vs. conventional FBA distribution centers (AWD offering $0.42 / cb ft per month vs. FBA's $0.87 / cb ft per month).
- It enables sellers to store goods for the long term and automatically replenish inventory to FBA distribution centers without a need to create regular shipments (which is the current process). AWD charges $1 / cb ft for FBA replenishment but comparatively, it is cheaper than the costs incurred from sending multiple shipments from 3PL / manufacturer (considering not only freight costs but also processing/handling costs).
- Storing goods at AWD will prevent sellers from being charged for low stock surcharge by Amazon - even if the stocks drop below the required level of inventory - since through AWD, Amazon will manage the replenishment automatically.
- Through a logistic partnership program, Amazon AWD will provide better freight costs for cross-border shipments and sea freight.
- Cost saving and cost avoidance: although this is a bit new and extremely subjective (depending on the logistical cost factors for each business/seller), there is an apparent cost-saving benefit by using the AWD storage facility. On average, 3PL storage costs (and especially FBA's storage) is extremely high compared to AWD's. Thus, it is better to hold long-term (2-6 months or more) stocks at AWD (based on storage costs).
- Additionally, there is a potential opportunity to avoid the surcharge costs that Amazon will be charging you if the stock level drops low or to less than required levels. This cost can range between $0.5 to multiple $s per unit (depending on the product classification).
- There is also a potential benefit of skipping the costs of handling/processing at 3PL if a supply chain directly from manufacturer to AWD is established.
- The user can potentially lower freight costs between manufacturers, 3PL & AWD under the logistic partnership.
- Simplification of the supply chain: with AWD sellers can simplify their supply chain by storing products at only one location instead of shipping to multiple locations and paying multifold. Also, AWD will minimize the need for multiple/recurring shipments to FBA as under AWD the replenishment will happen automatically (without a need for intervention).
- Obviously, the benefits outlined above will directly impact the performance of the seller by the following:
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- Improved product availability and reduced complexity of multiple replenishment/needs for 3PL.
- Improved bottom-line profitability for the business through cost savings/avoidance.
P.S. If any manual intervention is needed you can contact us via chat to initiate the process with you:
