Amazon Hikes AWD Fees Massively April 1, 2025

As many may have predicted when Amazon essentially forced sellers into using Amazon Warehousing and Distribution last year, Amazon has announced a huge rate increase effective April 1, 2025. Here's a full analysis of the increase.

AWD Storage Rates Up 13-26% in Most Cases

In typical Amazon fashion, the company has changed the name of one of its fee categories to make direct comparisons difficult. However, we'll try.

Amazon has renamed the “Integrated Rate” storage tier to “Smart Storage Rate.” The Integrated Rate was the rate applied when sellers allowed Amazon to auto-replenish their inventory, which most sellers were already doing.

Essentially, the Smart Storage Rate tier is the same as the Integrated Rate with one big caveat — you must store at least 70 days' worth of inventory at Amazon to qualify for the lowest storage rates (and use auto-replenishment). In other words, Amazon is forcing sellers to store more inventory at AWD to get the discounted rate.

Processing Fees Up 8%

Amazon has increased processing fees for inbound and outbound inventory by 8%.

Previously, these fees were a one-time charge of $2.50 per box on inbound shipments. Amazon has now split this charge into separate inbound and outbound fees. The end result? The blended fee is increasing from $2.50 per box to $2.70 per box (an 8% increase).

AWD Transportation Fees Up 15%

AWD transportation fees—the charges for moving inventory to FBA fulfillment centers—are increasing by 15%, from $1 per cubic foot to $1.15 per cubic foot.

Conclusion

Few sellers are likely surprised that Amazon would eventually impose a significant hike on AWD fees. However, the fact that Amazon is giving sellers less than 30 days' notice is both surprising and disappointing.

What impact will Amazon’s AWD fee increase have on your business? Let us know in the comments below.