Key takeaways:
- Amazon Warehousing and Distribution is now available in the UK, Germany, France, Italy and Spain.
- Sellers can store bulk inventory outside normal FBA capacity limits.
- Amazon can automatically replenish fulfilment centres according to demand.
- Continental European inventory will initially be stored in Germany.
- Storage charges will be waived for eligible inventory during the fourth quarter, although processing and transport fees remain.
Amazon Warehousing and Distribution, or AWD, went live in Europe on 20 August. It is the service’s first expansion beyond the United States, where it was introduced in 2022.
Instead of sending their entire inventory directly to Fulfilment by Amazon centres, sellers can place larger quantities in upstream distribution centres for longer-term storage. Amazon can then transfer stock into its FBA network as demand changes, reducing the need for sellers to plan and arrange each replenishment shipment manually.
Inventory held through AWD is also outside standard FBA capacity limits, potentially giving sellers more room to build stocks ahead of seasonal peaks.
Despite launching across five markets, Amazon is not initially providing a separate AWD warehouse network in each one. The company’s continental European facilities are located in Germany and will support its German, French, Italian and Spanish stores. A separate UK facility will serve the British market.
Storage is only part of the bill
Amazon is advertising AWD with flat-rate storage charges and no long-term commitment. Its published base rate is £0.36 per cubic foot per month in the UK and €12.33 per cubic metre in the EU. Lower rates are available to sellers meeting the conditions of its smart-storage arrangement.
However, storage is not the only cost. Sellers may also be charged for inbound and outbound processing, as well as transportation when inventory is moved from an AWD site to an FBA fulfilment centre.
To encourage adoption before Black Friday and Christmas, Amazon will waive storage fees for eligible inventory held in European AWD centres between 1 October and 31 December 2026. Processing and transportation charges will continue to apply. Amazon has advised sellers preparing for peak season to ensure inventory reaches AWD by 7 October and to create an FBA replenishment shipment by 10 October.
The programme terms contain further limitations. Self-service inventory removal is not currently available in Europe, while storing goods in Germany or the UK may create tax and reporting obligations for sellers.
Amazon takes on the upstream supply chain
Amazon launched AWD in the US in 2022 as a link between manufacturers’ or importers’ bulk stocks and its customer-facing fulfilment centres. The European rollout brings that model into five of the region’s largest ecommerce markets.
The development also fits Amazon’s broader effort to turn its internal logistics network into a service for other businesses. In May, the company introduced Amazon Supply Chain Services, combining freight transport, warehousing, inventory positioning, fulfilment and parcel delivery.
By adding bulk storage and automated replenishment in Europe, Amazon is moving further into activities traditionally handled by retailers and independent logistics providers. Sellers gain a more integrated route into FBA, but may also become more dependent on Amazon for a larger part of their supply chain.
