If your supply chain feels like a second full-time job, you’re not alone. I’ve been selling on Amazon for over 10 years, and managing suppliers, shipments, and storage has always been one of the most time-consuming parts of my business. The Supply Chain by Amazon program claims to solve that, with a fully managed system that books freight, clears customs, stores your inventory, and refills FBA automatically.
But is it actually worth handing off your entire supply chain to Amazon? In this guide, I’ll break down how the program works, what it really costs, so you can decide whether it makes sense for your business.
What is Supply Chain by Amazon?
Supply Chain by Amazon is a set of end-to-end logistics services designed to help sellers move products from their suppliers all the way to the customer’s front door, using Amazon’s fulfillment network. It combines several of Amazon’s existing services, like AGL, SEND, PCP, and AWD, into one system managed through Seller Central.
Instead of booking freight, hiring a 3PL, and juggling international shipping or warehouse transfers, sellers can let Amazon manage the entire process. As you may have guessed, one of the biggest advantages of this program is time savings and automation. You don’t have to coordinate multiple vendors or figure out customs on your own. SCA automates most decisions around shipping and storage, allowing you to stay focused on other parts of your business.
FBA vs. Supply Chain by Amazon
If you’ve been selling on Amazon for a while, you’re probably familiar with Fulfillment by Amazon (FBA). You send your products to Amazon’s fulfillment centers, and they handle storage, shipping, returns, and customer service for orders placed on Amazon.
Supply Chain by Amazon (SCA) is not a replacement for FBA. Instead, it includes FBA as one part of a larger, international logistics system. With SCA, Amazon also manages the work that happens before your inventory gets to FBA, like freight pickup, international shipping, customs, long-term storage, and restocking.
It’s a hands-off way to move inventory from your supplier to the customer using only Amazon services, including the delivery of non-Amazon orders through MCF. You still get the speed and reliability of FBA, but now Amazon is managing the whole path to get there.
How Does Amazon’s Supply Chain Program Work?
Supply Chain by Amazon runs on two building blocks: the programs that move and store inventory, and how these programs work together to get your inventory from your supplier to your customers.
What Services Are Included?
Below you’ll find a table of each program that is included with Supply Chain by Amazon. Depending on how your business is set up and where your supplier is located, you may use all of these services or just a few.
| Program | What It Does | When You’d Use It | Key Notes |
|---|---|---|---|
| Amazon Global Logistics (AGL) | Ships inventory from factories in China or Hong Kong to Amazon warehouses by ocean or air. | You manufacture in China or Hong Kong and want Amazon to manage international freight. | Handles pickup from your supplier, international shipping, customs clearance, and final delivery to FBA or AWD. Fully managed by Amazon. |
| Seller Export & Delivery (SEND) | Handles international shipping between 14 countries including India, Japan, UK, Vietnam, and the US. | You’re shipping internationally from a country other than China or Hong Kong. | Performs the same key steps as AGL, pickup, shipping, customs, and delivery to Amazon warehouses, but supports more countries. |
| Partnered Carrier Program (PCP) | Moves inventory within your home country to Amazon warehouses. | You’re shipping domestically from a prep center or warehouse to FBA or AWD. | Supports small-parcel and freight. Discounted rates with trusted carriers. |
| Amazon Warehousing & Distribution (AWD) | Stores products in bulk and automatically refills your FBA inventory as needed. | You want a long-term storage option for both FBA and non-Amazon channels. | Inventory is sellable as soon as it arrives. Auto-replenishes FBA stock based on demand. |
| Fulfillment by Amazon (FBA) | Picks, packs, and ships your Amazon orders. Also handles customer support and returns. | You sell on Amazon and want Prime shipping and other FBA benefits. | Inventory is automatically replenished from AWD. Your products are eligible for Prime delivery. |
| Multi-Channel Fulfillment (MCF) | Fulfills orders from other sales channels, like eBay or Shopify, using Amazon’s fulfillment network. | You want Amazon to fulfill orders from non-Amazon platforms. | Uses unbranded packaging. Shipping speed is slightly slower than FBA, but still fast and reliable. |
| Buy with Prime | Lets you offer Prime delivery and Amazon checkout on your own site. | You want to offer faster delivery on your Shopify or custom online store. | Orders are fulfilled through MCF. Can increase conversion rates due to faster, more reliable shipping. |
Step-by-Step: From Factory Pickup to Final Delivery
To help you get a better idea of how Supply Chain by Amazon works, here’s a basic explanation of the entire process from the time you submit your details in Seller Central till the time your products are shipped to your customers.
- You Submit Product Info and Pickup Details: Inside Seller Central, you enter your SKUs and pickup locations. Amazon then organizes and arranges the rest.
- Amazon Picks Up from Your Supplier: Whether you’re sourcing domestically or overseas, Amazon collects your inventory using AGL or SEND.
- International Shipping and Customs Are Handled: Amazon manages the entire cross-border process, including export documents, customs clearance, and transport to their warehouse network.
- Inventory Is Stored in AWD: Your products are stored in bulk at Amazon Warehousing and Distribution. They’re considered in stock and ready to sell as soon as they arrive.
- FBA Inventory Is Automatically Refilled: When your inventory at Amazon’s fulfillment centers runs low, products are transferred from AWD based on forecasted demand. You also have the option of handling this step manually. For more info on how to manage your FBA inventory, check out our detailed Inventory Management Guide for 2025.
- Orders Are Shipped to Customers: For Amazon orders, FBA handles fulfillment. For off-Amazon channels like Shopify or eBay, Amazon uses MCF to ship from the same inventory pool.
Supply Chain Costs and Pricing
There’s no one-size-fits-all price tag for using Supply Chain by Amazon. Your costs will depend on the size and weight of your products, how much you ship, and how long your inventory stays in Amazon’s system. Shipping method also plays a big role. Air freight is faster but more expensive than ocean, and AWD storage fees are significantly lower than FBA, especially during peak season.
The table below focuses on the main programs inside Supply Chain by Amazon, but it doesn’t cover standard FBA fees. If you need a full breakdown of Amazon’s storage rates, fulfillment costs, and all the extra FBA charges that can sneak up on you, I’ve put together a detailed guide here: How Much Are Amazon Seller Fees?.
| Service Name | Fee Type | Estimated Cost (USD) | What It Covers |
|---|---|---|---|
| Amazon Warehousing and Distribution (AWD) | Storage (per cubic foot / month) | $0.48 (Standard Rate) | Bulk inventory storage before FBA or off-Amazon fulfillment |
| AWD | Inbound Processing (per box) | $1.35 | When inventory enters AWD |
| AWD | Outbound Processing (per box) | $1.35 | When inventory leaves AWD |
| AWD | AWD to FBA Transport (per cu ft) | $1.15 | Moving inventory from AWD to Amazon FBA |
| AWD | Non-Amazon Shipping (per cu ft) | $1.65 | Used for off-Amazon orders like Shopify, Walmart, etc. |
| Amazon Global Logistics (AGL) | Ocean Freight (40-ft container) | $9,000–$12,000 | Shipping from China to Amazon warehouses in the US, UK, or EU |
| Partnered Carrier Program (PCP) | Small Parcel Delivery (per pound) | $0.25 – $0.70 | Domestic shipping from your warehouse to AWD |
| PCP | LTL / FTL Freight | Varies | Based on shipment size and distance |
| Multi-Channel Fulfillment (MCF) | Fulfillment Fee (per unit) | Starting at $5.38 | Fulfillment of non-Amazon orders from FBA or AWD inventory |
While I included the standard rates in the table above, Amazon does offer multiple ways to lower your costs. One option is Smart Storage, a discounted AWD rate that kicks in when you keep at least 70 days of inventory on hand and use their FBA auto-replenishment feature. It brings storage fees down by 10% compared to the base rate. You’ll also find that the more services you use together, the better the pricing gets. If you choose to use Amazon’s full end-to-end setup, you’ll see the biggest savings, including 20% off AWD storage fees and 10% off transportation costs.
How to Get Started with SCA
Amazon has made it surprisingly easy to get started with Supply Chain by Amazon, especially if you’re already a registered seller. Most of the setup happens inside Seller Central, and once you’re in, scheduling your first shipment will just take a couple of minutes.
Requirements and Account Setup
If you’re already using Amazon FBA as your fulfillment method and sell in the US marketplace, there’s a good chance you’ll already meet the requirements for using Supply Chain by Amazon. But just in case, let’s quickly go over all of the requirements you’ll need to meet before you can get started.
- Professional Selling Plan: You’ll need to be on Amazon’s $39.99/month plan to access tools like FBA, AWD, and Amazon Global Logistics.
- FBA Enrollment: If you’re not already using FBA, you’ll need to enroll and set your fulfillment preferences. This unlocks services like AGL and SEND.
- Importer of Record (IOR) Info: For international shipments, you’ll have to provide IOR documentation so Amazon can handle customs on your behalf.
- Barcode and Label Compliance: Make sure your products meet Amazon’s inbound requirements, which include proper barcodes like UPCs or FNSKUs.
- U.S. Marketplace Requirement: The fully managed version of Supply Chain by Amazon is currently only available to sellers in the U.S. However, many of the individual services, like AGL, SEND, and PCP, are available in other countries and can still be used on their own.
Only AGL requires a quick one-time registration. You’ll add a payment method, upload IOR documents, and fill out a short setup form. The other services, like SEND, PCP, and AWD, don’t need any extra setup. They kick in automatically when you create a shipment through the standard “Send to Amazon” workflow.
Setting Up Your First Shipment
If you’ve met all of the necessary requirements and you can book your first SCA shipment from inside Seller Central. The exact steps will depend on where your inventory is coming from and whether you’re sending it to AWD for bulk storage or straight to FBA. But the overall process is pretty straightforward.
You’ll start by either visiting the “Manage Inventory” screen (for FBA) or the AWD page in Seller Central. From there, you’ll choose your ship-from location, usually your supplier or prep center, and confirm where the inventory’s headed. For FBA shipments, Amazon will suggest a destination fulfillment center, but in most cases, you can override it if needed. For AWD shipments, Amazon typically assigns the warehouse automatically based on where they have space.
Next, you’ll choose your shipping method and carrier. If you’re shipping internationally, you’ll either use AGL if your supplier is in China or Hong Kong, or SEND if your supplier is located in other countries like Mexico, the UK, Germany, India, Vietnam, Thailand, or Taiwan. If you’re shipping domestically, the Partnered Carrier Program (PCP) gives you access to Amazon’s discounted ground and freight rates. You’ll enter details like the number of cartons or pallets and their dimensions, then confirm the pickup.
Once the shipment is booked, you’re good to go. Amazon will handle the logistics, including pickup, cross-border shipping, customs, and final delivery to the correct warehouse. As soon as the inventory is scanned in at AWD or FBA, it becomes available for sale.
Frequently Asked Questions (FAQs)
What’s the difference between Supply Chain by Amazon and Fulfillment by Amazon (FBA)?
Fulfillment by Amazon (FBA) handles picking, packing, and shipping once your inventory is inside Amazon’s Fulfillment Centers. Supply Chain by Amazon manages the entire process, starting with factory pickup, then freight, customs, storage, and shipping your inventory into FBA. It’s designed to handle both the inbound and outbound sides of your supply chain.
How much does Supply Chain by Amazon cost?
It’s impossible to give an exact dollar amount as costs vary based on product size, storage time, and shipping method. There are also factors like your supplier’s location, the marketplace you sell in, and which services you require that will be factored into your final cost.
That said, Sellers who sign up for SCA are eligible for additional savings, including 20% on AWD storage and 10% on transportation costs.
Can I use Supply Chain by Amazon for Shopify, Walmart, or other non-Amazon orders?
Yes, Supply Chain by Amazon supports fulfillment for non-Amazon orders through Multi-Channel Fulfillment (MCF). You can store inventory in one place and ship orders from platforms like Shopify or Walmart using Amazon’s network, including unbranded packaging when required.
What are the requirements to use Supply Chain by Amazon?
You’ll need a Professional seller account, FBA enrollment, and barcode-compliant products. If you import inventory, you’ll also need Importer of Record (IOR) details. Services like AWD and PCP are available once you begin shipping through Seller Central.
How long does it take for products to become Prime-eligible with Supply Chain by Amazon?
There’s no fixed timeline because it depends on factors like your supplier, origin and destination countries, and whether you use air or ocean freight. That said, when it comes to shipping, Amazon is known for speed. Air freight via AGL can deliver in days, and once inventory reaches AWD, Amazon treats it as in stock.
Is Supply Chain by Amazon Right for Your Business?
If you import products, sell on multiple platforms, or you’re tired of dealing with customs, shipping, and logistics issues, Supply Chain by Amazon is definitely worth a look. It’s designed for sellers who are ok with handing over some control in exchange for simpler, more automated inventory management.
That said, this program won’t be for everyone. If your business relies on branded packaging or custom unboxing experiences, SCA might not be a good fit. The same goes for sellers who have more complicated supply chains or sellers who prefer a more hands-on approach. Amazon can shift products between warehouses without notice, and, from my own experience, I can say that support for non-Amazon orders doesn’t always ship with the same urgency as FBA.
At the end of the day, Supply Chain by Amazon is a powerful tool, but it won’t be for everyone. If your goal is to automate fulfillment and let Amazon handle the messy parts of logistics, it could make sense for your business. But if you care more about direct control, customization, or staying independent, it might be better to stick with other options.
Levi Adler is an experienced Amazon seller, e-commerce specialist, and the founder of Levi’s Toolbox. With over a decade in the trenches selling on Amazon and managing his own Shopify stores, Levi writes from his own experience. Sharing what worked, what flopped, and the strategies he wishes he’d known sooner. When he’s optimizing listings or managing ad campaigns, you’ll find Levi hitting mountain bike trails or hanging out with his two huskies, Emma and Scout.
