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AWD Auto-Replenishment 70% Benefits
I need some clarification on how storage fees apply to inventory that has been auto-replenished from AWD to FBA.
I understand that if at least 70% of my replenished FBA inventory was auto-replenished via AWD, I avoid the FBA aged inventory surcharge (181-365 days) and the low-inventory-level fee. However, my question is:
Once inventory is transferred from AWD to FBA through auto-replenishment, does it follow standard FBA storage rates, or does it retain the AWD discounted storage rate while at FBA? Does the 70% Ratio impact this also?
The reason I ask is that AWD recently auto-replenished six months' worth of inventory for an ASIN, and if this inventory is now subject to full FBA storage rates, it would significantly increase my overall costs to store. I want to be sure I fully understand the financial implications before allowing AWD to auto replenish more inventory on items.
Could you please clarify how storage fees are applied in this scenario?
4 replies
Seller_i6S8knzW6zU6Z
Hi @Seller_5HaEGj48NLzb9,
When inventory moves from AWD to FBA, you'll pay the standard FBA monthly storage fees. However, you can qualify for several fee waivers by maintaining a 70% Auto-Replenishment Ratio (ARR). You can find details about these waivers in the "Applicability of FBA fees" section at Amazon Warehousing and Distribution fees, which explains that with a 70% ARR, you won't be charged:
- FBA aged inventory surcharge (181-365 days)
- Low-inventory-level fee
- Storage utilization surcharge (starting June 1, 2024)
For your six months of auto-replenished inventory, you can check if you're meeting the 70% threshold by using this formula from the "Benefits of Auto-Replenishment" section at Replenishment from AWD to FBA network:
Auto Replenishment shipment quantity / (Auto + Manual + Add-on + Direct Inbound to FBA) = Auto Replenishment Ratio
You might also want to know about some upcoming changes: Starting April 1, 2025, AWD will introduce new "smart storage rates" and split processing fees into separate inbound and outbound charges. You can find the new rates in the "Fee rates" section of the AWD fees help page.
To monitor your current status, I'd recommend running the FBA Surcharge Waiver Status report regularly to ensure you're maintaining the benefits.
Hope this helps clarify things! Let me know if you have any other questions.
Best regards, Michael
Topher_Amazon
Thanks to MH for the helpful reply and link above! @Seller_5HaEGj48NLzb9 I've reached out to our AWD partners for further clarifications, but I would echo referencing the help page and the April 1 changes mentioned within in the meantime!
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