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5. Pros and Cons of Amazon AWD

Question:

I am considering shipping inventory into Amazon AWD. I heard many different agenda's about using Amazon AWD service.
Can you explain what are the pros and cons for using AWD service?

Answer:

Amazon AWD, or Amazon Warehousing and Distribution, is a service offered by the e-commerce giant that allows businesses to store and distribute their products to customers around the world. 

Pros

• IPI Score:
  If you are sending inventory to and from AWD your IPI does not get affected during this process (unlike for example if there is time delay from your warehouse to Amazon Fulfilment Centre or long check in times).
• Scalability: 
  One of the biggest advantages of Amazon AWD is the scalability it offers. With a vast network of warehouses and distribution centers located around the world, businesses can store and distribute their products on a large scale, expanding their reach and increasing their sales.
• Reliability: 
  Amazon is known for its efficient and reliable logistics system, and Amazon AWD will have this know, like, trust factor already established from the brand.
• Cost-effective:
  Compared to setting up and maintaining an in-house warehouse and distribution system, Amazon AWD is more cost-effective for businesses, especially small and medium-sized enterprises.
• Global reach: 
  With Amazon's presence in multiple countries, businesses can reach a global audience and expand their market, increasing their sales and growth opportunities.

Cons:

• Dependence on Amazon: 
  One of the biggest drawbacks of using Amazon AWD is the dependence on the company. If Amazon changes its policies or experiences any technical issues, businesses that rely on the service may face challenges.
• Limited control: 
  Once products are stored in Amazon's warehouses, businesses have limited control over their products, as the company makes all decisions regarding storage and distribution.
• Increased costs: 
  Although Amazon AWD may be cost-effective, businesses may still face increased costs for storage, handling, and transportation, which can add up over time.

AND currently there are challenges in creating appointments with Amazon AWD centers, such as: Limited appointment slots: Amazon AWD centers have limited appointment slots, making it difficult for businesses to schedule appointments during peak periods.

Proboxx have had many encounters with AWD centers whereby meeting times are being  generated more than one month in advance.

Limited hours of operation: Amazon AWD centers have limited hours of operation, making it challenging for businesses to schedule appointments outside of normal business hours.

Long wait times: Due to the high demand for Amazon AWD services, businesses may face long wait times for appointments, which can be frustrating and time-consuming.

Amazon AWD Warehouse Codes:

FC: Fulfillment Center, which is Amazon's main warehouse and distribution center.

KD: Sortation Center, which is a smaller facility that sorts packages for delivery to local delivery stations.

DS: Delivery Station, which is a facility that packages and delivers orders to customers.

In conclusion, Amazon AWD offers many advantages, including scalability, reliability, cost-effectiveness, and global reach. 

However, it also has its drawbacks, including dependence on Amazon, limited control, potential increased costs, and challenges in creating appointments with Amazon AWD centers. 

Businesses must weigh these pros and cons carefully before deciding whether to use Amazon's warehousing and distribution services at this current time.