Streamlining Success: How Three Sellers Enhanced Efficiency with Amazon Warehousing and Distribution (AWD)
USD $39.99 a month + selling fees
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Background:
Three Amazon sellers—Cyril, Kevan, and Dobie—share their experience of leveraging Amazon Warehousing and Distribution (AWD) to streamline logistics, improve inventory management, and increase cost-efficiency. Each seller faced unique challenges, from scaling operations and managing seasonal products to avoiding stockouts and optimizing costs. Through AWD, they discovered new strategies to grow their businesses.
Three Amazon sellers—Cyril, Kevan, and Dobie—share their experience of leveraging Amazon Warehousing and Distribution (AWD) to streamline logistics, improve inventory management, and increase cost-efficiency. Each seller faced unique challenges, from scaling operations and managing seasonal products to avoiding stockouts and optimizing costs. Through AWD, they discovered new strategies to grow their businesses.
Seller Profiles
- Cyril Chia: He began selling on Amazon in 2018, focusing on craft-related products such as knitting looms, yarn winders, yarn holders, and other accessories. His focus on product design and customer research helped him exceed $1M in sales in 2023. With AWD, Cyril efficiently manages new product launches, avoids long-term storage fees.
Cyril Chia
Kevan
- Kevan: In addition to running AGrader.sg, an education center chain, Kevan expanded into selling home decor accessories and gifts on Amazon in 2021, all under the brand Decorably. His sales grew by 166% year-over-year, and AWD has been instrumental in managing large inventories and improving cost efficiency.
- Dobie: After being a stay-at-home mom for 10 years, Dobie started selling home and garden decor products on Amazon. Dobie’s U.S. sales grew by 58% year-over-year in 2024, and AWD has helped her manage seasonal products, avoid stockouts, and reduce long-term storage fees.
Why They Chose AWD
All three sellers adopted AWD to optimize their inventory and logistics processes. For Cyril, AWD eliminated inbound placement fees and provided auto-replenishment features. Kevan needed a storage solution during peak seasons and found AWD more cost-effective than third-party logistics (3PL) providers. Dobie appreciated AWD’s ability to prevent stockouts and save on storage costs, particularly for seasonal products.
Experience with AWD
The sellers' experiences exceeded their expectations:
● Cyril praised AWD’s cost-saving features and automation of inventory management, though he looks forward to further improvements in the shipping interface.
● Kevan noted significant cost savings, faster replenishment, and improved scalability, calling AWD a game-changer for his business.
“AWD is more cost-effective and faster than our previous 3PL, saving us over 40% on storage and inbound transport fees.”
● Dobie was impressed by AWD’s smooth integration, which simplified inventory management and helped her avoid capacity limits.
“The main reason we chose AWD was to prevent stockouts. Since our products are highly seasonal, keeping stock in AWD before the peak season works for us as sales can fluctuate greatly. Toward the end of the season, maintaining some inventory for unexpected sales is beneficial because AWD's storage fees are lower than standard fulfillment centers. If sales slow down, we can still store excess stock without incurring high storage fees.”
All three sellers recommend AWD for its flexibility, efficiency, and potential to streamline logistics.
● Cyril praised AWD’s cost-saving features and automation of inventory management, though he looks forward to further improvements in the shipping interface.
● Kevan noted significant cost savings, faster replenishment, and improved scalability, calling AWD a game-changer for his business.
“AWD is more cost-effective and faster than our previous 3PL, saving us over 40% on storage and inbound transport fees.”
● Dobie was impressed by AWD’s smooth integration, which simplified inventory management and helped her avoid capacity limits.
“The main reason we chose AWD was to prevent stockouts. Since our products are highly seasonal, keeping stock in AWD before the peak season works for us as sales can fluctuate greatly. Toward the end of the season, maintaining some inventory for unexpected sales is beneficial because AWD's storage fees are lower than standard fulfillment centers. If sales slow down, we can still store excess stock without incurring high storage fees.”
All three sellers recommend AWD for its flexibility, efficiency, and potential to streamline logistics.
AWD is more cost-effective and faster than our previous 3PL, saving us over 40% on storage and inbound transport fees.
– Kevan
Strategic Impact
AWD has profoundly impacted their product selection and business strategies:
● Cyril now ships more inventory to AWD to prevent stockouts, without worrying about long-term storage fees. This has allowed him to test more product variations and launch new ASINs confidently.
● Kevan uses AWD to manage seasonal demand effectively, storing backup inventory and releasing it based on sales trends. This approach minimizes overstock and stockout risks while optimizing storage costs.
“It has boosted our confidence in introducing more seasonal designs, which are challenging to forecast. Ordering too little can result in stockouts and lost sales, along with low-inventory penalties, while ordering too much leads to overstock, aging inventory, and higher storage fees in fulfillment centers. With AWD, we can store a portion of our backup inventory and release it gradually as demand becomes clearer throughout the season.”
● Dobie leverages AWD to handle her highly seasonal products, storing stock ahead of peak seasons and avoiding high storage fees in fulfillment centers. This strategy ensures she can meet fluctuating demand without incurring excess storage fees.
● Cyril now ships more inventory to AWD to prevent stockouts, without worrying about long-term storage fees. This has allowed him to test more product variations and launch new ASINs confidently.
● Kevan uses AWD to manage seasonal demand effectively, storing backup inventory and releasing it based on sales trends. This approach minimizes overstock and stockout risks while optimizing storage costs.
“It has boosted our confidence in introducing more seasonal designs, which are challenging to forecast. Ordering too little can result in stockouts and lost sales, along with low-inventory penalties, while ordering too much leads to overstock, aging inventory, and higher storage fees in fulfillment centers. With AWD, we can store a portion of our backup inventory and release it gradually as demand becomes clearer throughout the season.”
● Dobie leverages AWD to handle her highly seasonal products, storing stock ahead of peak seasons and avoiding high storage fees in fulfillment centers. This strategy ensures she can meet fluctuating demand without incurring excess storage fees.
The main reason we chose AWD was to prevent stockouts. Since our products are highly seasonal, keeping stock in AWD before the peak season works for us as sales can fluctuate greatly. Toward the end of the season, maintaining some inventory for unexpected sales is beneficial because AWD's storage fees are lower than standard fulfillment centers. If sales slow down, we can still store excess stock without incurring high storage fees.
– Dobie
Avoiding Stockouts and Overstocking
AWD’s flexible and rapid replenishment has been crucial in helping these sellers avoid stockouts and overstock situations:
● Kevan shared how AWD helped him during the back-to-school season, where replenishment took only 2-3 days, compared to his previous 3PL provider. This speed was essential in maintaining stock levels during a high-demand period.
● Dobie faced a challenge when she over-ordered stock for a new ASIN in June 2024. With slower sales than expected, keeping a buffer stock in AWD helped her avoid long-term storage fees and stress. She highlighted how unpredictable demand spikes, such as large orders from customers, made AWD’s buffer stock feature invaluable for managing inventory fluctuations.
"Out-of-stock occurrences are common since accurately predicting buyer demand is challenging. Despite our best planning efforts, we can suddenly see a spike in purchases—like when a single buyer orders 10 or 20 units at once for their gardening projects—causing our stock levels to plummet. Keeping a buffer in AWD has been incredibly helpful in managing these fluctuations."
● Kevan shared how AWD helped him during the back-to-school season, where replenishment took only 2-3 days, compared to his previous 3PL provider. This speed was essential in maintaining stock levels during a high-demand period.
● Dobie faced a challenge when she over-ordered stock for a new ASIN in June 2024. With slower sales than expected, keeping a buffer stock in AWD helped her avoid long-term storage fees and stress. She highlighted how unpredictable demand spikes, such as large orders from customers, made AWD’s buffer stock feature invaluable for managing inventory fluctuations.
"Out-of-stock occurrences are common since accurately predicting buyer demand is challenging. Despite our best planning efforts, we can suddenly see a spike in purchases—like when a single buyer orders 10 or 20 units at once for their gardening projects—causing our stock levels to plummet. Keeping a buffer in AWD has been incredibly helpful in managing these fluctuations."
Cost Savings
AWD has enabled the sellers to reduce storage and distribution costs:
● Kevan reduced storage fees by 50% and transportation costs by 60% by switching from 3PL to AWD. He also avoided long-term storage fees and benefited from lower inbound transportation costs.
“By avoiding long-term storage and low-inventory fees, and optimizing both our capacity limits and storage utilization, we’ve significantly improved cost efficiency and profitability. Additionally, inbound transportation costs have decreased, as transferring stock from AWD is more cost-effective compared to the Small Parcel Delivery (SPD) and Less-Than-Truckload (LTL) options we previously used with our 3PL warehouses. We’ve cut storage and processing fees by 50% and reduced transportation costs by 60%.”
● Dobie found AWD 20% cheaper than her previous 3PL, particularly during peak seasons, as AWD doesn’t impose peak surcharges.
● Kevan reduced storage fees by 50% and transportation costs by 60% by switching from 3PL to AWD. He also avoided long-term storage fees and benefited from lower inbound transportation costs.
“By avoiding long-term storage and low-inventory fees, and optimizing both our capacity limits and storage utilization, we’ve significantly improved cost efficiency and profitability. Additionally, inbound transportation costs have decreased, as transferring stock from AWD is more cost-effective compared to the Small Parcel Delivery (SPD) and Less-Than-Truckload (LTL) options we previously used with our 3PL warehouses. We’ve cut storage and processing fees by 50% and reduced transportation costs by 60%.”
● Dobie found AWD 20% cheaper than her previous 3PL, particularly during peak seasons, as AWD doesn’t impose peak surcharges.
By avoiding long-term storage and low-inventory fees, and optimizing both our capacity limits and storage utilization, we’ve significantly improved cost efficiency and profitability. Additionally, inbound transportation costs have decreased, as transferring stock from AWD is more cost-effective compared to the Small Parcel Delivery (SPD) and Less-Than-Truckload (LTL) options we previously used with our 3PL warehouses. We’ve cut storage and processing fees by 50% and reduced transportation costs by 60%.
– Kevan
Inventory Management
AWD has greatly improved inventory management for all three sellers:
● Cyril reduced time spent on inventory management, thanks to AWD’s auto-replenishment and streamlined logistics.
● Kevan appreciated AWD’s ability to replenish stock quickly during mini-seasons throughout the year. This flexibility allowed him to avoid overstocking and stockouts, particularly during the busy back-to-school season.
“The system enables us to replenish inventory swiftly and efficiently, reducing the risk of overstock and shortages. Our product category experiences "mini-seasons" year-round, like Teacher Appreciation Week in April, Veterans Day, Independence Day, Easter, and even seasonal transitions like spring, summer, fall, and winter, each bringing demand spikes. AWD has made managing this constant seasonality easier, thanks to faster upstream lead times throughout the year.”
● Dobie benefited from AWD’s buffer stock feature, which prevented stockouts during periods of unpredictable demand. The centralized system also simplified her overall inventory management.
● Cyril reduced time spent on inventory management, thanks to AWD’s auto-replenishment and streamlined logistics.
● Kevan appreciated AWD’s ability to replenish stock quickly during mini-seasons throughout the year. This flexibility allowed him to avoid overstocking and stockouts, particularly during the busy back-to-school season.
“The system enables us to replenish inventory swiftly and efficiently, reducing the risk of overstock and shortages. Our product category experiences "mini-seasons" year-round, like Teacher Appreciation Week in April, Veterans Day, Independence Day, Easter, and even seasonal transitions like spring, summer, fall, and winter, each bringing demand spikes. AWD has made managing this constant seasonality easier, thanks to faster upstream lead times throughout the year.”
● Dobie benefited from AWD’s buffer stock feature, which prevented stockouts during periods of unpredictable demand. The centralized system also simplified her overall inventory management.
Cyril reduced time spent on inventory management, thanks to AWD’s auto-replenishment and streamlined logistics.
Improved Visibility and Control
AWD has also improved inventory visibility and control for Kevan and Dobie, further streamlining their operations:
● Kevan emphasized how AWD has transformed his inventory management, particularly for seasonal products that require precise forecasting. With AWD’s real-time analytics and data insights, he can make more informed replenishment decisions, improving operational efficiency.
● Dobie echoed these sentiments, noting that AWD simplified her inventory tracking process by consolidating everything into one system, eliminating the need to monitor 3PL stock separately.
● Kevan emphasized how AWD has transformed his inventory management, particularly for seasonal products that require precise forecasting. With AWD’s real-time analytics and data insights, he can make more informed replenishment decisions, improving operational efficiency.
● Dobie echoed these sentiments, noting that AWD simplified her inventory tracking process by consolidating everything into one system, eliminating the need to monitor 3PL stock separately.
Conclusion
Amazon Warehousing and Distribution has proven to be a valuable asset for Cyril, Kevan, and Dobie, allowing them to grow their businesses, manage seasonal fluctuations, and reduce operational costs. AWD’s flexibility, cost efficiency, and streamlined logistics make it a powerful service for Amazon sellers looking to enhance their operations and maximize profitability.
Note: The information contained in this guide does not constitute legal, tax or financial advice. If you are in doubt as to the action you should take, please consult your legal, financial, tax, or other professional adviser. In addition, the content in this article is for information only and must not be construed as a guarantee of future results. Many factors influence the demand for a seller’s products, including price fluctuations, consumer demand shifts, and sellers remain responsible for determining the products they sell and their prices.
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