Amazon fulfillment is changing fast in 2025 – are you keeping up? With the new Send to Amazon workflow now mandatory, sellers are dealing with more split shipments, rising storage fees, and tighter FBA restock limits. These challenges are pushing many to reconsider how they handle inventory and fulfillment. Amazon AWD has gained significant traction among sellers this year. It gives sellers more control by offering lower-cost storage, bulk inbound shipments, and automated replenishment into FBA – especially valuable during peak seasons like Q4. If you’re unsure whether to stick with FBA, switch to AWD, or use a combination of both, this blog will help you decide. We’ll break down how each model works, what the Amazon FBA 2025 fees look like, and how sellers are using them together to cut costs and stay flexible. Let’s dive in. What Is Amazon FBA? Fulfillment by Amazon (FBA) is a service that allows sellers to store their products in Amazon’s fulfillment centers. Amazon then takes care of the entire process – from storing and shipping the products to handling returns and customer service. For many sellers, FBA means less time spent on logistics and more time focused on marketing, sourcing, and scaling. One major advantage: your products become eligible for Prime shipping, which can increase visibility and conversions by appealing to Amazon’s vast Prime customer base. Earlier in 2025, Amazon made the Send to Amazon workflow mandatory for all sellers – a required process for sending inventory to FBA. While it helps simplify inbound shipments, it has also introduced challenges like split shipments and stricter restock limits. Even now, months after these updates, FBA continues to be a top fulfillment choice for many Amazon sellers. How Amazon FBA Works? Step 1: Ship Your Inventory to Amazon Use the Send to Amazon workflow to send your products into Amazon’s fulfillment network. Amazon may split your shipment across multiple warehouses depending on demand zones. Step 2: Products Are Stored in Fulfillment Centers Once received, Amazon stores your inventory until it’s sold – with scanning, tracking, and stock visibility in Seller Central. Step 3: Amazon Picks, Packs, and Ships Orders When a customer places an order, Amazon handles the entire fulfillment process. Items are shipped with fast, Prime-eligible delivery (usually within 1–2 days). Step 4: Amazon Manages Customer Service and Returns All post-purchase support – including returns, refunds, and inquiries – is handled by Amazon’s service team, saving you time and overhead. Pros of Using Amazon FBA Even with all the 2025 changes, Amazon FBA still offers strong benefits – especially for sellers who want to scale without managing logistics in-house. Here’s what makes it a preferred choice: 1. Prime Eligibility Boosts Sales FBA products are automatically eligible for Amazon Prime, which means your listings show up with the Prime badge. This improves visibility, builds buyer trust, and often leads to higher conversion rates – especially with shoppers who filter for Prime-only items. 2. Fast, Reliable Shipping Amazon handles 1- to 2-day delivery across most of the U.S. and UK. Their massive fulfillment network ensures orders reach customers quickly, helping you compete with top sellers and meet rising delivery expectations. 3. Hands-Off Fulfillment and Returns With FBA, Amazon picks, packs, ships, and even manages returns for you. This all-in-one service takes a huge burden off your operations, letting you focus on growth, marketing, and sourcing instead of customer service or warehouse tasks. 4. Multi-Channel Fulfillment (MCF) You can use FBA to fulfill orders from Shopify, eBay, or Walmart through Amazon’s MCF service. This means one inventory pool can support multiple sales channels – saving time and improving inventory efficiency (though extra fees apply). 5. Scalable for Small and Growing Brands Whether you’re just starting out or scaling fast, FBA lets you grow without needing your own warehouse, staff, or shipping software. It’s especially useful if you’re testing new products and want to move fast without setup overhead. Cons of Amazon FBA in 2025 As helpful as FBA is, it’s not perfect – especially in 2025, where fulfillment rules and fees have gotten more complex. Here are the biggest drawbacks sellers should consider: 1. Restock Limits Add Pressure Amazon uses restock limits to control how much inventory you can send, based on sales and your IPI score. If you’re planning for Prime Day or Q4, these limits can block your growth unless you plan inventory carefully or use an AWD backup. 2. Higher Storage Costs in Peak Season From October to December, Amazon significantly increases its storage fees – up to $2.40/cu ft. If you don’t sell through fast enough, you’ll end up paying more just to store slow-moving products. 3. Limited Control Over Packaging & Branding With FBA, your products ship in Amazon-branded packaging. Unless you prep items yourself before shipping them in, you lose control over inserts, gift packaging, or the overall unboxing experience – which can be limiting for DTC-focused brands. 4. Split Shipments Increase Work & Costs Amazon’s Send to Amazon workflow often splits your shipments across multiple fulfillment centers. This increases prep time, packaging complexity, and shipping costs – especially if you ship large quantities. 5. Not Ideal for Bulk or Slow-Moving Inventory FBA works best for fast-moving products. If your items sit too long, you’ll face long-term storage fees or forced removals. For bulk or seasonal storage, AWD may be a more cost-effective solution. When to Use Amazon FBA So when does FBA actually make sense for your business in 2025? If your goal is speed, convenience, and growth without managing fulfillment yourself, Amazon FBA is the right fit. And with the help of Amazon FBA management software, sellers can streamline operations even further – from inventory syncing to shipment planning. It’s especially powerful when used with fast-moving products and a lean operations team. Here are the ideal situations for using FBA: 1. Need fast Prime delivery If your sales depend on reaching customers quickly and earning their trust with the Prime badge, FBA is the most direct route. Amazon’s logistics network is hard to beat for 1–2 day shipping. 2. Sell fast-moving or seasonal items FBA works best with inventory that turns over fast. Whether you’re selling trendy items or prepping for seasonal spikes (like Prime Day or Q4), FBA helps you move stock quickly – avoiding long-term storage fees. 3. No warehouse or team If you’re a small to mid-size seller without the infrastructure for storage, packing, or customer service, FBA becomes your full-service fulfillment partner – no need to hire or invest in physical space. 4. Want Amazon to handle support Returns, refunds, and customer questions? Amazon takes care of it all. This gives you more time to focus on scaling your business instead of getting bogged down in post-order issues. 5. Prepared for restock limits & storage fees You understand that FBA has restock limits and Q4 storage fees, but you’ve planned around them – possibly even using AWD to support it. If you’re strategic, FBA still delivers strong value. What Is Amazon AWD? Amazon Warehousing & Distribution (AWD) is Amazon’s backend storage and distribution service for sellers. It’s designed to help you store inventory in bulk at lower costs and automatically transfer stock into Fulfillment by Amazon (FBA) when needed. AWD doesn’t fulfill customer orders directly-it supports your FBA pipeline, offering more flexibility and control, especially during peak seasons like Q4 or Prime Day. As of mid-2025, AWD is becoming essential for sellers dealing with FBA restock limits, rising storage fees, and complex shipping logistics. It allows you to hold excess inventory offsite, avoid storage surcharges, and keep your FBA listings active without interruption. How Amazon AWD Works? AWD operates behind the scenes to streamline your fulfillment process. Here’s how it works step by step: Step 1: Send Inventory to AWD You ship bulk inventory to Amazon’s AWD centers instead of directly to FBA. This centralizes your stock and reduces the need for multiple small shipments. Step 2: Store at Lower Cost Your products are stored long-term at a lower per-cubic-foot rate compared to FBA – especially helpful for slow-moving or seasonal inventory. Step 3: Replenish FBA Automatically When your FBA stock runs low, AWD automatically transfers inventory based on your restock settings. You don’t need to manually initiate the process. Step 4: FBA Handles Fulfillment Once stock reaches FBA, Amazon resumes the usual fulfillment process – shipping orders to customers, managing returns, and handling customer service. This workflow helps sellers reduce logistics headaches, stay Prime-eligible, and manage fulfillment more efficiently. Pros of Using Amazon AWD AWD doesn’t fulfill customer orders directly – that’s still handled by FBA. But behind the scenes, it plays a powerful role in optimizing your inventory pipeline. From cost savings to better prep for peak sales periods, AWD gives sellers more control and scalability. Here’s why many sellers are turning to AWD in 2025: 1. Lower Storage Costs AWD stores your inventory at around $0.48/cu ft – far lower than FBA’s $2.40/cu ft during Q4. With Smart Storage discounts, the rate can drop even more, making it ideal for slow-moving or off-season stock. 2. No Restock Limits AWD allows you to send unlimited inventory, avoiding FBA restock caps that often limit sales during growth spikes or peak seasons. 3. Automatic Replenishment AWD integrates directly with FBA. When your fulfillment stock runs low, it automatically transfers inventory – no manual intervention needed, saving time and avoiding stockouts. 4. Supports Bulk Inbound Shipments Instead of shipping small quantities that get split across multiple FBA centers, you can send thousands of units to AWD in one go, reducing prep time, freight costs, and complexity. 5. Inventory Consolidation AWD acts as your centralized storage hub. Rather than juggling stock across multiple Amazon warehouses, you manage it in one place, and AWD redistributes as needed to keep your FBA listings active. Cons of Amazon AWD AWD offers long-term storage and flexibility, but it comes with limitations that every seller should weigh carefully. Here’s what to consider before relying on AWD in your 2025 fulfillment strategy: 1. Additional Inbound and Replenishment Fees Using AWD means paying twice: once to ship inventory into the AWD center and again to transfer stock into FBA. In 2025, both fees are around $1.35 per box. While manageable at scale, these charges can add up if you’re not optimizing shipment sizes and timing. 2. Longer Fulfillment Times (If Used Alone) AWD is strictly a backend storage solution – it doesn’t deliver customer orders. If you use AWD without integrating it with FBA, you lose Prime shipping benefits and risk longer delivery times. This makes it unsuitable as a standalone fulfillment method. 3. Less Visibility & Control Because AWD is still newer than FBA, many sellers find the platform less intuitive. From limited inventory tracking tools to fewer customization options, AWD still lacks the transparency and mature features that sellers expect – especially those used to FBA’s detailed dashboards. 4. No Multi-Channel Fulfillment (MCF) AWD inventory cannot be used for non-Amazon channels. If you sell on Shopify, Walmart, or eBay, AWD won’t support those orders. You’ll still need another fulfillment method or third-party logistics (3PL) provider to handle your multichannel needs – unless you’re pairing AWD strictly with FBA. When to Use Amazon AWD Amazon AWD isn’t a direct replacement for FBA – but in the right situations, it can solve major fulfillment headaches. If you’re looking for better storage rates, fewer restock issues, or more flexibility during peak season, here’s when AWD makes the most sense: 1. Need low-cost bulk storage AWD is built for long-term inventory storage at lower rates than FBA – especially useful for slow-moving SKUs or large catalogs that don’t need to be Prime-ready right away. 2. Hit FBA restock limits If your sales are growing faster than your FBA limits allow, AWD helps you keep excess stock ready. You can store without restriction and transfer to FBA as space becomes available. 3. Preparing for Q4 or Prime Day Want to avoid last-minute shipment chaos? Send your inventory to AWD early and keep FBA stocked automatically during high-demand events like Black Friday or Prime Day. 4. Want automated FBA restocking AWD integrates with your FBA workflow to trigger inventory transfers automatically based on your thresholds – saving time and avoiding manual errors. 5. Don’t need direct order fulfillment AWD doesn’t ship to customers. It’s ideal if you only need backend support to keep FBA stocked – not for fulfilling multi-channel or non-Amazon orders. Amazon AWD vs FBA: 2025 Fee Comparison Understanding the fee differences between AWD and FBA is crucial for making smart inventory decisions. In 2025, Amazon has updated several fulfillment charges – from storage to replenishment – that directly impact your bottom line. While FBA still includes fulfillment and customer service, AWD offers more affordable backend storage with added flexibility. The table below breaks down the key cost areas so you can compare both options side by side and choose the right mix for your business strategy. Fee Type Amazon FBA Amazon AWD Storage Fees $0.78/cu ft (Jan–Sep), $2.40/cu ft (Oct–Dec), long-term fees $0.48/cu ft base, discounted to $0.43 with Smart Storage Inbound Fees Included (with Amazon Partnered Carrier); split shipments may apply $1.35/box inbound to AWD Replenishment Fees N/A $1.35/box to transfer from AWD to FBA Fulfillment Fees Per unit, varies by size/weight N/A – AWD doesn’t fulfill customer orders Prep/Labeling Fees Optional (if Amazon handles prep) Optional (if using AWD prep service) Removal Fees Higher, especially for aged/oversized items Similar or slightly lower Restock Limits Yes – based on IPI and account performance No limits – send in bulk freely Smart Inventory Strategies: Using AWD + FBA Together Sellers looking to stay competitive in 2025 are increasingly combining Amazon AWD and FBA – not as separate options, but as a powerful hybrid strategy. This approach offers greater flexibility, better cost control, and smoother inventory flow – especially during high-demand periods like Q4 or Prime Day. Avoid Restock Limits With Amazon FBA restock limits tightening, storing surplus inventory in AWD helps you stay ahead. You can replenish your FBA stock automatically, based on sales velocity or pre-set rules – ensuring you’re never out of stock during peak times. Plan Ahead for Q4 & Prime Day AWD gives you the ability to send inventory in bulk, well in advance. This minimizes last-minute freight charges and keeps your FBA fulfillment pipeline running smoothly when customer demand spikes. Lower Your Costs By using AWD for long-term or slow-moving inventory, you avoid FBA’s high Q4 storage fees. Only transfer what’s needed to FBA – keeping your storage costs predictable and manageable. Stay in Control Managing two systems can get complex, but with the right tools, you can track everything from one dashboard. Automating transfers between AWD and FBA reduces manual errors and saves valuable time. eSellerHub lets you manage AWD and FBA in one place so you can forecast demand, move inventory faster, and avoid costly stockouts. Which One Should You Choose? Choosing between Amazon FBA and AWD in 2025 depends on how your business operates and where your pain points lie. If your focus is on Prime delivery, faster order fulfillment, and having Amazon handle customer service and returns, FBA is a strong fit – especially for fast-moving or seasonal inventory. But if you’ve been struggling with restock limits, high Q4 storage fees, or want more control over your inbound logistics, AWD provides the flexibility to store in bulk, ship early, and automatically replenish your FBA stock when needed. For many sellers, the most efficient strategy is combining both. Use AWD for lower-cost backend storage and smoother replenishment, and let FBA handle fast delivery and customer-facing fulfillment. Together, they create a smart, scalable solution that keeps your operations lean and responsive.