Replenishment from Amazon Warehousing and Distribution (AWD) to FBA network

Inventory replenishment at Amazon Warehousing and Distribution (AWD) can either be managed by Amazon (Auto-Replenishment) or by you (Manual Replenishment or Add-On). Upon enrollment, your inventories are automatically managed through auto-replenishment but you will have the option to opt out at SKU level to manually choose when to replenish your inventories.

Through the Auto-Replenishment feature, AWD will move the inventory from the Amazon Distribution Centers (DC) to the FBA network (Amazon fulfillment centers) on your behalf to avoid stockouts. When the inventory is Auto-Replenished to the FBA network, it is exempted from the capacity limits through FBA and if 70% or more inventory of a given ASIN is sent to the Amazon fulfillment centers through AWD’s Auto-Replenishment in the preceding 90 days, certain FBA fees will not apply to the seller-ASIN. Please refer to Amazon Warehousing and Distribution fees for the latest policy on this. Additionally, in the event that an opted-in ASIN does run out-of-stock in the FBA network, customers can continue to search and buy the product on the store.

Auto-Replenishment provides incentives like capacity limits exemptions through FBA which, while not directly impacting the IPI scores, have a positive impact on IPI’s calculation index. Also, sellers are not charged low inventory level and storage utilization fees for the ASINs, where Auto-Replenishment ratio is greater than or equal to 70%. To evaluate whether an ASIN qualifies for no low inventory level and storage utilization fees, the Auto-Replenishment ratio is calculated in the following way:

Auto Replenishment shipment quantity / (Auto + Manual + Direct Inbound to FBA) = Auto Replenishment Ratio

If the percentage is equal to or larger than 70%, then the ASIN will be exempt from low inventory level and storage utilization fees. The Auto-Replenishment ratio is calculated on a daily basis and takes the quantities shipped in the past 90 days only. The 90 days calculation for an ASIN starts on the first day an Auto-Replenishment shipment is created for that specific ASIN.

Below is a sample calculation for a particular ASIN:

• Auto-Replenishment shipment quantity (on 10/14) = 7000 units (a)
• Direct to Inbound shipment quantity (on 11/6) = 1000 units (b)
• Manual Replenishment (on 12/2) = 1500 units (c)

Auto Replenishment ratio (on 12/10) = a / a + b + c

= 7000 / 7000 + 1000 + 1500 = 73.6%

Auto-Replenishment uses a proprietary data science model to trigger replenishment to the FBA network. When the combined quantity of Available inventory in FBA network and Inventory in transit to FBA network falls below the Optimum level of supply for a specific ASIN, the Auto-Replenishment will be triggered during the next scheduled replenishment cycle to ensure the ASIN does not go out-of-stock. Currently, the science model runs 7 days a week to monitor inventory in the FBA network and determine if an Auto-Replenishment shipment needs to be triggered.

Each seller-ASIN will have its own optimal level. Additionally, the optimal level for an ASIN will fluctuate over time. For specific quantities of Available inventory in FBA network, Inventory in transit to FBA network, and Optimum level of supply, refer to the Auto-replenishment quantity section on the View global inventory page.

Below is a general Auto-Replenishment calculation:

• Available in FBA network: 100 units
• In-transit to FBA network: 300 units
• Optimal level: 500 units

Science model recommendation (Auto trigger)

= Optimal level – (Available in FBA network + In-transit to FBA network)

= 500 – (100 + 300)

= 100

The Auto replenishment algorithm considers 5 years of historical data and upcoming sales forecast to bake in increased demand for the ASIN at the seller level. The auto-replenishment algorithm looks at similar ASINs and products in addition to an ASIN’s sales history. Auto-replenishment is able to predict demand without historical data for a specific ASIN based on how similar product or product types have performed in the past. The algorithm will create an optimum inventory level applicable for the ASIN that reflects the sales forecast and auto-replenishment will move inventory from AWD to FBA to maintain the science determined Optimum inventory level in FBA.

To access your SKU level replenishment settings, follow below steps on AWD Inventory or Move from AWD pages:

1. From under the FBA replenishment column, click the Auto replenishment link which will open up a modal.
2. Option 1: FBA auto-replenishment (using Amazon recommended FBA units)–Choose this option to leverage Amazon’s science model to determine the optimal inventory levels required in FBA and automatically create replenishments on your behalf, ensuring consistent stock availability in your FBA inventory.
3. Option 2: FBA auto-replenishment (Using custom Maximum FBA unit limit or Minimum FBA unit limit)–Choose this option to set the maximum or minimum number of units limit for FBA inventory. AWD will compare the Optimum inventory levels against the lower and upper limits you specify to determine the auto replenishment quantity. Note that For ASINs with multiple MSKUs, we will use the highest value set across all MSKUs to determine the replenishment quantity at the ASIN level.
4. Option 3: Disable auto replenishments–Choose this option to disable auto replenishments for this SKU. By selecting this option, you will assume responsibility for transferring inventory from AWD to FBA each time.
5. If you choose Option 2 or Option 3, you will have to provide the reason for the choice and acknowledge the risk of over-stocking or out of stock inventory that could result from this selection.
6. Note that 1) The Maximum and Minimum FBA unit limit may take up to 24 hours to become effective, 2) If your current FBA inventory exceeds the Maximum FBA unit limit, the restriction will only apply to future replenishments.
7. By setting a Minimum FBA limit, you may be subject to a storage utilization surcharge or long term storage fee in FBA. Similarly, by setting a Maximum FBA limit, you may be subject to low inventory level fee in FBA.

1. Enter the number of units to move to select the SKUs you want to manually replenish.
2. Click Confirm to confirm the move and then click Review Move Request.
3. On the Review Move Request page, confirm the move request by clicking Confirm move request post, which you will get a confirmation module.

On the AWD program page, click Track replenishments and you will be directed to the Activity Monitor page, where you will be able to track your manual replenishment orders. By filtering shipment IDs and others metrics, you could search and review the status of your manual replenishment orders.

This is different from the case where the shipment created is for more inventory than what is available at the distribution center. In this case, a shipment with the available amount of inventory at the distribution center would be created.

How long does it take for inventory to replenish from the AWD storage facility to FBA?

The replenishments take up to an average of 14 days to move from an AWD center to the FBA network.

How can I start the investigation for the missing units from an AWD Replenishment shipment?

For any discrepancies in the AWD Replenishment shipments, raise a support case per shipment to start the investigation. Also, it is crucial that you attach the Proof of Ownership of the ASIN associated with the specific shipment relating to your support case.

What if an Auto or Manual Replenishment order does not contain whole carton units?

Inventory movement in AWD warehouses is done at the carton level. AWD will round down orders to the closest carton at a SKU level when moving them. For example, if you request to move 19 units of a SKU with 5 units per carton, AWD would move 3 cartons containing 15 units. In the move inventory page you can directly select the number of cartons that needs to be moved.