Starting January 15, 2026, Amazon will be increasing Amazon Warehousing & Distribution (AWD) fees, making it more expensive to store and move inventory through AWD. These changes are designed to align fees with operational costs, but they will have a direct impact on your business.
What’s changing with AWD fees?
AWD storage fee: The cost of storing and moving inventory in AWD will rise:
AWD Storage Fee | 2025 | 2026 |
West region | $0.48/cubic foot per month | $0.57/cubic foot per month |
Other regions | $0.43/cubic foot per month | $0.48/cubic foot per month |
Smart storage fee: The West Region has increased from $0.43 to $0.51 per cubic foot per month (10% off base). In other regions, the rate has increased from $0.38 to $0.43 per cubic foot per month (10% off base).
Amazon Managed fee: The West Region has increased from $0.38 to $0.46 per cubic foot per month (20% off base). In other regions, the rate remains unchanged at $0.38 per cubic foot per month (20% off base).
The AWD inbound processing fee has increased from $1.35 to $1.40 per box.The AWD outbound processing fee has also increased from $1.35 to $1.40 per box.
The AWD transportation fee (smart storage rate) for both the west region and other regions has risen from $1.15 to $1.40 per cubic foot.
The AWD transportation fee (Amazon Managed) has increased from $1.04 to $1.26 per cubic foot (10% off base).
Amazon is adding differential pricing based on the region and product size, which means shipping to the West region will be more expensive than to other regions. In short, AWD storage is no longer the cheap option for storing inventory before sending it to FBA, especially for slow-moving products.
What this means for sellers
Higher costs for slower-moving inventory: If you rely on AWD to store inventory before sending it to FBA, you’ll see higher fees, especially for slower-moving products. These increases might affect your margins, especially if you depend on AWD to store a lot of inventory.
Less flexibility with AWD: Amazon will still offer base, smart storage, and Amazon Managed fees, but these will apply only when certain conditions are met.
Smart storage rates will apply if at least 70% of your inventory is sent from AWD to FBA via auto-replenishment over the last 90 days. If your inventory moves slowly, you may not qualify for Smart Storage and could end up paying higher fees.
How sellers can adjust for 2026 AWD fee changes
Optimize your shipments: Ship directly to FBA instead of using AWD to store inventory. This helps you avoid the additional fees for AWD storage and transportation. Consider using Full Truckload (FTL) or Less-than-Truckload (LTL) shipping methods for cost-effective and faster inventory replenishment.
Maintain 6-8 weeks of FBA inventory: This buffer ensures you have enough stock at FBA, reducing the risk of running out of inventory and paying for unnecessary AWD storage.
Move away from AWD for long-term storage: AWD is better suited for overflow or short-term storage. If you’re using AWD for long-term storage, consider shifting to FBA to reduce fees and increase inventory movement speed.
Focus on faster-moving products: Slow-moving items will face higher storage fees in AWD. Work on reducing reliance on AWD by focusing on products with quicker turnover.
Review packaging options: Reduce packaging fees by ensuring products are ready for FBA upon arrival. Consider using Ships in Product Packaging (SIPP) where possible to lower fulfillment costs.
Stay updated with AWD pricing and tools: Use Amazon's Revenue Calculator and Fee Preview Reports to plan and understand the full cost of using AWD versus FBA. The new Profit Analytics dashboard also helps you calculate how these changes affect your product profitability.
AWD costs are rising in 2026, so it’s time to re-evaluate how you store and ship inventory. By optimizing shipments directly to FBA, maintaining healthy stock levels, and minimizing reliance on AWD, you can protect your margins and avoid unexpected costs.
Need help navigating these changes or optimizing your inventory strategy? Our Amazon selling specialist can guide you through managing fees, improving your FBA efficiency, and ensuring smooth transitions as these new fees come into play.
