Beyond AWD: Building a Resilient US Warehousing Strategy for 2025
The landscape of e-commerce logistics in the United States is shifting. For years, Amazon sellers relied almost exclusively on FBA (Fulfilment by Amazon).
However, as Amazon introduces more complex fee structures and storage constraints, the need for a diversified warehousing strategy has become a top priority for serious brands.
At PROBOXX, we have expanded our infrastructure to include specialized facilities in California and Pennsylvania. This move is not just about adding square footage; it is about providing a strategic alternative to the rising costs and limitations of Amazon’s AWD (Amazon Warehousing and Distribution) system.
The Problem with Over-Reliance on AWD
While AWD offers some convenience, it comes with significant drawbacks that can hurt your bottom line:
Rising Costs: Amazon frequently adjusts its storage and processing fees. In 2024, many sellers saw their margins tighten due to these incremental increases.
Lack of Flexibility: AWD is built for Amazon. If you want to sell on Walmart, eBay, or your own Shopify store, using AWD as your primary hub is often inefficient or impossible.
Inventory Blind Spots: Automated systems are great until they fail. Having your inventory managed by a black box algorithm means you lose the personal touch required to solve complex labeling or packaging issues.
The PROBOXX Advantage: Regional Hubs in CA and PA
Our decision to focus on California and Pennsylvania was intentional. These two regions are the gateways to the US market.
California (West Coast): Perfect for receiving shipments coming from Asia. By storing goods here, you minimize inland drayage costs and can quickly replenish FBA centers in the western US.
Pennsylvania (East Coast): Ideal for reaching the high-density population centers of the Northeast. Having stock on the East Coast reduces the last-mile delivery time for FBM (Fulfilment by Merchant) orders and ensures faster replenishment for Eastern FBA hubs.
Five Ways a 3PL Saves You Money
Working with a dedicated third-party logistics (3PL) partner like PROBOXX provides financial benefits that go beyond just storage fees:
1. Avoiding Low Inventory Level Fees
Amazon now penalizes sellers who do not maintain enough inventory. By keeping a buffer stock in our warehouses, you can drip-feed inventory into FBA as needed, ensuring you never hit those low-stock penalty thresholds while avoiding high FBA long-term storage fees.
2. Professional Prep and Inspection
When goods arrive from overseas, they are not always Amazon-ready. Our team can perform detailed inspections, re-labeling, and kitting. Fixing an issue in our warehouse costs a fraction of what Amazon charges for unplanned services or, worse, the cost of a returned shipment.
3. Omni-Channel Growth
The future of e-commerce is multi-channel. Our facilities integrate with major platforms, allowing you to fulfill orders from any source. This diversification is the best way to protect your business from changes in Amazon’s terms of service.
4. Handling Returns and Removals
FBA returns can be a nightmare. We provide a central location for receiving, inspecting, and restocking returns. This allows you to recover value from items that Amazon might otherwise mark as disposable.
5. Personalised Account Management
Logistics is a human business. When you work with PROBOXX, you have a dedicated account manager who understands your specific SKU requirements. We provide the transparency that massive automated systems lack.
New Year Promotion: $100 Off Your Transition
We believe in the value of our warehousing solutions so much that we want to make the transition as easy as possible. For any new client who signs up for our warehousing services during January 2025, we are offering a $100 credit toward your first month of service.
Strategic Planning for 2025
As you look at your budget for the coming year, ask yourself: Is my inventory safe? Am I overpaying for storage? Do I have a backup plan if my FBA limits are cut?
A diversified warehousing strategy is the answer to all of these questions. By leveraging the PROBOXX network in CA and PA, you gain the flexibility, cost-control, and reliability needed to scale your brand in a competitive market.
Optimize Your Storage Today
Don't let rigid storage systems or rising fees limit your business potential. Let us build a customised warehousing plan that puts you back in control of your inventory and your margins.
Book a FREE Warehousing Strategy Call with our experts