Good news, you can get discounts on AWD. The catch? You need to master Amazon’s inventory management puzzle first.

Back in December, we talked about Amazon’s 2025 fee updates and how they would impact Multi-Channel Distribution (MCD) and Amazon Warehousing and Distribution (AWD). Well, April 1 is right around the corner, and those changes are about to take effect.

If you use MCD or AWD, your logistics costs could look very different soon.

Quick Recap of what is changing

MCD Outbound Transportation Fees
MCD has allowed sellers to use Amazon’s logistics network for orders outside of Amazon. Until now, shipping costs were fixed, but that is changing.

✔️ Old model: Flat transportation fee, regardless of distance
✔️ New model: Distance-based fees, meaning longer shipments will cost more

AWD Updates
AWD is Amazon’s centralized inventory hub, but it is also getting a major pricing update.

✔️ Smart Storage discounts: Sellers maintaining consistent inventory levels get 10 percent off storage fees
✔️ Processing fees split: Inbound and outbound processing fees will now be separate charges
✔️ New pricing tiers: Base rates, Smart Storage rates, and Amazon Managed rates will determine costs based on inventory management

So, are these changes helping sellers streamline operations, or is this just another way for Amazon to shift costs?

I would love to hear your take on this as we get closer to April.