AWD vs LTL Shipment: Key Differences and Choosing the Right Option
Shipping is a very important part of supply chains. Less-than-Truckload (LTL) shipping is best for smaller items that don't fill a truck, while Amazon Warehousing and Distribution (AWD) is a way to store and send large amounts of inventory.
AWD connects inventory management to Amazon Fulfillment Centers, and LTL lets you split the cost of shipping. Which one to use (AWD or LTL) depends on the size of the shipment, how much you want to save, and how you need to handle logistics.
AWD vs LTL Shipment: Which Is Best for Your Needs?
If you need to choose between Amazon Warehousing and Distribution (AWD) and Less-than-Truckload (LTL) shipments, it comes down to your business needs and shipping strategy. AWD takes care of managing large amounts of inventory and making sure that it gets sent out smoothly through Amazon fulfillment centers.
LTL, on the other hand, shares cargo space with smaller loads. A business needs to know about important things like storage fees, transportation fees, and how each one fits into the supply chain in order to make the best choice.
The Key Difference Between AWD and LTL
AWD: A logistics solution designed for bulk inventory storage, inventory distribution, and replenishment directly to Amazon distribution centers.
LTL: A shipping method for smaller shipments, ideal for pallet shipments or partial loads with shared trailer space.
Choosing Between AWD and LTL
For FBA sellers who deal with large amounts of goods and FBA storage limits, choose AWD.
If you need to ship small or light items that don't need full truckloads, choose LTL.
For both, you need to know about processing fees, operational costs, and delivery times.
What is an AWD Shipment?
Amazon Warehousing and Distribution (AWD) provides fulfillment services to make it easier for businesses that use Amazon's fulfillment network to store and restock their inventory.
With AWD, sellers can store large amounts of inventory at Amazon's fulfillment centers and restock as needed. Because it works so well with Seller Central accounts, this service is a great addition to any eCommerce business.
Definition and Overview
AWD is a supply chain solution that was made to help AWD sellers keep track of their large inventories.
It helps sellers get the most out of their storage space for inventory, lower their FBA storage limits, and better manage shipments coming in.
Core Features of AWD
AWD Storage Fees:
Cost-effective pay-as-you-go pricing.
Seasonal adjustments, e.g., higher fees during holidays.
Example: Non-holiday AWD storage fees start at $0.42 per cubic foot per month.
Transportation Fees:
Charges based on cubic feet or pallets.
Options to ship through Amazon Global Logistics or your own carrier.
Processing Fees:
Covers inbound and outbound handling activities.
Example: $2.00 per case for all shipments processed.
What is FTL or LTL Shipments?
FTL (Full Truckload) and LTL (Less-than-Truckload) are the two main ways that freight is shipped. For shipments that take up a whole truck, FTL is used. For smaller loads that share trailer space, LTL is used. It depends on how many pallets you need to ship, how much they cost, and how fast you need them to arrive.
What Does LTL Mean in Freight?
Loads that are shipped LTL range from 150 to 15,000 pounds.
Perfect for businesses that need to send smaller loads to more than one place.
It saves money because multiple shipments use the same truck space.
When to Use FTL for Shipments
Use FTL for:
Large shipments exceeding 15,000 pounds or 10 pallets.
Products requiring direct routes to minimize handling.
High-security items or fragile goods.
FTL costs are generally higher than LTL but ensure faster delivery and fewer stops.
LTL vs. AWD
LTL is all about shipping inventory, while AWD works with Amazon fulfillment centers to make managing inventory easy.
LTL is only for transporting things, while AWD provides extra storage, processing, and fulfillment services.
What Does AWD Mean in Logistics?
Amazon Warehousing and Distribution (AWD) is an important part of modern logistics because it makes managing inventory and distributing it easier. AWD is made for Amazon sellers and works with the Amazon fulfillment network to keep track of inventory and restocking.
This service is very important for companies that want to make their supply chain more efficient, especially those that want to make the best use of their storage space and avoid running out of stock.
The Role of AWD in Modern Supply Chains
AWD simplifies logistics by addressing key challenges:
FBA Sellers: Eliminates FBA storage limits by providing additional bulk storage options.
Distribution Centers: Ensures products are stored and replenished directly to Amazon distribution centers.
Inventory Levels: Monitors and replenishes stock automatically to maintain sufficient inventory levels.
Why AWD Stands Out
AWD differs from traditional warehousing and distribution models:
Upstream Storage Fees: Charged monthly based on cubic feet used, making it a flexible pricing model.
Transportation Fees: Covers movement between distribution centers and Amazon’s network.
Processing Fees: Handles inbound and outbound shipments efficiently.
Key benefits include:
Less work for Amazon sellers to do by hand to manage their inventory.
Easy integration with Seller Central to keep track of inventory in real time.
Help with shipping pallets to make logistics run more smoothly.
What is AWD in Cargo?
AWD is made to handle both small packages and large loads, which meets the specific needs of online stores. Its main job is to offer fulfillment services that make shipping products easier and cheaper. This makes AWD perfect for companies that need to quickly move their stock without having to deal with complicated logistics.
Types of Cargo Supported by AWD
Standard Products: Suitable for most Amazon sellers with bulk items.
Pallet Shipments: AWD supports LTL shipments where products share truckloads with others.
Non-Hazardous Goods: Ensures safe storage and transport in compliance with Amazon’s policies.
Limitations of AWD for Cargo Management
Despite its advantages, AWD has specific limitations:
Same Truck Load Restrictions: FBA and AWD inventories cannot share the same truck load, requiring separate handling.
Limited Product Categories: Excludes hazardous materials, perishables, and oversized items.
Amazon Global Logistics Dependency: For international shipments, AWD relies heavily on Amazon Global Logistics.
Advantages of AWD for cargo:
Makes fulfillment services easier for sellers who handle a lot of goods.
Finds the best way to store Amazon's inventory.
Cuts costs by making AWD costs clear and offering flexible pricing models.
Final Thoughts
If you need to ship things, the AWD program and LTL shipments can help you in different ways. The Amazon Warehouse Distribution (AWD) program is a cheap way for Amazon sellers to keep track of their inventory and get around stock limits.
AWD makes sure that Amazon's distribution program's inventory is always restocked because it has low storage costs and low transportation costs. If your business needs to fulfill orders across multiple channels or deliver small packages, looking at the costs of shipping and the sales channels can help you make the best choice for your supply chain.