Amazon GWD, AWD, and independent 3PLs offer different solutions for inventory storage, FBA replenishment, and fulfillment. Each option varies in warehouse location, costs, and inventory control.
This 2026 guide compares storage fees, handling costs, multi-channel fulfillment, and key differences to help Amazon sellers choose the right solution.
Amazon GWD
Amazon AWD
3PL Fulfillment
The three options differ in warehouse location, inventory movement, pricing, and fulfillment flexibility.
| Feature | Amazon GWD | Amazon AWD | Independent 3PL |
|---|---|---|---|
| Warehouse location | China, near manufacturers | United States | US or other markets |
| Main purpose | Origin-side inventory storage | US bulk inventory storage | Storage and fulfillment |
| Main destination | US FBA | FBA and eligible off-Amazon destinations | FBA, Shopify, Walmart, DTC |
| Replenishment | Amazon-managed program | Automatic or manual | Seller-controlled |
| Prep and labeling | Must be arranged before FBA | Must be arranged before FBA | Available from providers |
| Multi-channel flexibility | Limited | Available through MCD | High |
| Best for | China-based FBA sellers | Sellers with predictable FBA demand | Multi-channel businesses |
The most important distinction is the inventory starting point. GWD keeps stock close to the manufacturer, AWD holds inventory closer to US customers, and a 3PL can support different stages of the supply chain.
Amazon Global Warehousing and Distribution (GWD) is an origin-side warehousing program that allows eligible sellers to store products in China before shipping inventory to Amazon’s US fulfillment network.
Instead of sending all finished goods overseas immediately, sellers can hold stock near their suppliers and arrange replenishment according to demand. Amazon integrates GWD with its logistics network, including Amazon Global Logistics (AGL), to coordinate cross-border transportation.
The typical inventory process is:
Products are manufactured and prepared at a Chinese factory.
Inventory is delivered to an Amazon GWD warehouse in China.
Products remain in storage until replenishment is needed.
Amazon coordinates eligible shipments through AGL.
Inventory is transported to US FBA fulfillment centers.
As of November 2026, Amazon operates GWD warehouses in Shenzhen, Shanghai, and Ningbo.
GWD is useful for sellers manufacturing in China who want to delay cross-border inventory movement and avoid sending their entire production volume to the US at once.
Its main advantages include:
Lower origin-side storage costs compared with many destination-market options.
Inventory storage close to Chinese manufacturers.
Integrated logistics coordination through AGL.
Flexible replenishment based on sales demand.
However, GWD is not a general-purpose warehouse. It currently focuses on replenishment to US FBA, and eligible products must meet Amazon’s size, weight, packaging, and category requirements. Dangerous goods, refrigerated products, and certain high-value or restricted items are not supported.
Amazon Warehousing and Distribution (AWD) is a bulk inventory storage program designed to hold products in the destination market before they enter Amazon FBA.
Unlike GWD, which stores inventory in China, AWD allows sellers to send bulk stock to US distribution centers. Amazon then manages storage and can automatically replenish FBA fulfillment centers as inventory levels change.
The typical process starts when sellers ship products from China or another supplier to an AWD warehouse in the United States.
After receiving inventory, Amazon stores the products and manages replenishment through automatic or manual transfers to FBA. This reduces the need for sellers to create individual restocking shipments whenever FBA inventory decreases.
AWD is particularly useful for sellers with consistent sales volumes and predictable demand. Instead of keeping all available stock in FBA, they can maintain a larger buffer inventory in AWD and move products into fulfillment centers as needed.
Yes. Through Multi-Channel Distribution (MCD), AWD can distribute inventory in bulk to off-Amazon destinations, including a seller’s own warehouse, third-party warehouses, wholesalers, and distributors.
However, MCD is different from direct-to-consumer fulfillment. It moves inventory in bulk rather than automatically picking, packing, and shipping every individual Shopify or Walmart order.
This makes AWD more flexible than a traditional Amazon-only storage solution, although it does not replace all the services provided by an independent 3PL.
An independent third-party logistics provider operates outside Amazon’s warehousing network. Sellers can use a 3PL to receive, store, prepare, and distribute inventory according to their own business requirements.
A 3PL warehouse can be located in China, the United States, or another destination market. This makes it possible to use third-party storage before international shipping or after products have cleared customs.
Depending on the provider, services may include:
Supplier cargo collection and warehouse receiving.
Pallet and carton storage.
Inventory inspection and stock management.
FBA prep and FNSKU labeling.
Kitting, bundling, and custom packaging.
Picking, packing, and direct order fulfillment.
Replenishment to Amazon FBA and other distribution centers.
For example, a seller purchasing from several Chinese manufacturers can use a China warehouse to consolidate products before international shipping. Explore our China warehouse consolidation service for more information.
The biggest advantage of an independent 3PL is operational flexibility. Sellers can decide when inventory moves, how much stock goes to each channel, and which preparation services are required.
A 3PL is particularly useful for businesses selling through Amazon, Shopify, Walmart, eBay, and their own websites.
The trade-off is that storage, receiving, handling, and fulfillment fees vary between providers. Sellers also need to monitor warehouse performance, inventory accuracy, and service agreements rather than relying entirely on Amazon’s integrated system.
The total cost of using GWD, AWD, or an independent 3PL depends on more than monthly storage rates. Sellers should also consider inbound placement, warehouse handling, and transportation to Amazon FBA.
Storage fees vary by warehouse location and season. The following figures provide a reference for comparing typical monthly costs.
| Fee Category | Amazon GWD | Amazon AWD | Independent 3PL |
|---|---|---|---|
| Storage (Jan–Sep) | $8.79/CBM/month; Ningbo $7.91 | $0.48–$0.57/cu ft/month | $0.50–$0.65/cu ft/month |
| Storage (Oct–Dec) | Published rate generally unchanged | Regional base rate applies | May rise to $1.20–$2.50/cu ft/month |
| Inbound processing | $0.20/carton, plus applicable export declaration | $1.40/box; eligible palletizable shipments may qualify for discounts | Receiving and unloading fees vary |
| Outbound processing | $0.30/carton, plus applicable declaration charges | $1.40/box | Picking, handling, or pallet-out fees vary |
| Transfer to FBA | AGL transportation charged separately | $1.40/cu ft base transportation rate | Domestic freight charged separately |
| FBA placement | Depends on the applicable placement arrangement | Included under eligible AWD arrangements | Amazon placement charges may apply |
GWD offers relatively low-cost storage at the origin, allowing sellers to keep inventory close to Chinese manufacturers. AWD provides US-based bulk storage with regional pricing, while independent 3PL rates can increase significantly during peak shipping periods.
Beyond storage, the main cost differences come from how inventory enters and leaves each warehouse.
Amazon GWD: Inbound placement is generally free when using AGL under the applicable program terms. Handling is included in the sea freight arrangement, while cross-border transportation to the US is charged separately.
Amazon AWD: No separate inbound placement fee applies under the AWD program. Automatic transfers to FBA simplify replenishment and reduce additional coordination.
Independent 3PL: Receiving and handling charges vary by provider. Non-consolidated inbound shipments may incur additional fees of approximately $0.21–$0.68+ per item, while pallet handling may cost around $3–$15 per pallet.
GWD is attractive for sellers storing China-origin inventory before international shipping. AWD is convenient for businesses that need US bulk storage and regular FBA replenishment. Independent 3PLs may have higher handling costs, especially during peak season, but offer more control over inventory and multi-channel distribution.
When comparing quotations, include storage, receiving, preparation, handling, and transportation costs. A lower monthly storage rate does not necessarily mean a lower total fulfillment cost.
The right solution depends on product origin, inventory turnover, sales channels, and the level of control your business requires.
GWD is a suitable option when products are manufactured in China, meet Amazon’s eligibility requirements, and are primarily intended for the US FBA network.
It allows sellers to store inventory near their suppliers and replenish Amazon when needed, reducing the need to move all stock overseas in advance.
AWD is better suited to sellers who already import products into the United States and need a cost-effective bulk storage solution.
Its automatic replenishment and MCD capabilities are useful for businesses with predictable inventory demand that want to manage stock across Amazon and eligible off-Amazon destinations.
An independent 3PL is generally the better choice when sellers need customized packaging, product preparation, direct order fulfillment, or greater control over inventory distribution.
It is also useful for products that do not qualify for Amazon’s storage programs or businesses that sell through multiple platforms.
Amazon ended its US FBA prep and item-labeling services on January 1, 2026. This change applies to inventory entering US FBA, including eligible shipments routed through AWD and AGL.
Sellers must now arrange the required preparation before products reach FBA fulfillment centers. This can be completed at the factory, through an independent 3PL, or by another qualified service provider.
Important preparation requirements include:
Correct product packaging and protection.
FNSKU or other applicable product labels.
Carton identification and shipment information.
Outer-box dimensions and weight compliance.
Pallet preparation when required.
See our guides to FNSKU labels for Amazon FBA and Amazon FBA outer-box and pallet requirements before arranging delivery.
Useful freight, customs and importing resources related to this shipping guide.
