☠️ Amazon Raises AWD Fees for 2025 ☠️

Amazon sellers, heads up—significant changes are coming to Amazon Warehousing and Distribution (AWD) fees in 2025. Amazon is set to increase AWD rates starting April 1, 2025, impacting storage and processing costs for sellers. I hate to bring you more bad news, but there's no escaping it.

Did you really believe Amazon when they said that they would not raise fees in 2025? I'm sorry but if you fell for that, YNGMI.

👉 Here’s the breakdown:

Storage Fee Hike: The base storage rate will jump from $0.48 to $0.56 per cubic foot—a 16.7% increase. Even with the “Smart Storage” discount (now upped to 15% from 10%), the effective rate rises from $0.43 to $0.48 per cubic foot. 🤯

Processing Fees Split: AWD processing fees will now separate into inbound ($0.47-$0.81 per unit) and outbound ($0.18-$0.61 per unit) charges, replacing the previous combined fee of $0.65-$1.42. This shift will raise costs depending on your shipment patterns.

Why the Change? Don't ask stupid questions. Amazon money printer goes brrrrr.

Takeaway for YOU: While AWD remains cheaper than FBA storage ($0.87-$2.40 per cubic foot), these increases erode some of its cost advantage. Sellers relying on AWD as a buffer for FBA replenishment will feel the squeeze big time.

I want to know what you think. Are you rethinking your inventory strategy or doubling down on AWD? Drop your comments below!

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P.S.

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