Amazon FBA Inventory Resolution — AWD Expiry & 3-Month Cap
Overview
Amazon flagged 600+ units of Doodla's 1lb black beans as expiring (Dec 14) and removed them from active sale. The root cause was identified as Amazon's AWD (Amazon Warehousing & Distribution) system, which does not use FIFO (First-In, First-Out) rotation — allowing older stock to sit while newer stock was sold through. This article documents the agreed resolution plan discussed in the [1].
Problem
- 600+ units of 1lb black beans at an AWD center flagged as expiring Dec 14
- Amazon pulled the units from sale automatically
- Root cause: AWD does not enforce FIFO, so older stock aged out while newer stock moved
- Additional slow-moving items (e.g., 25lb kidney beans) also at risk in AWD
Resolution Plan
1. Expiring AWD Stock — Dispose
Request Amazon dispose of the expiring AWD inventory rather than issuing a return order. Disposal is more cost-effective than paying return shipping and handling fees.
- Owner: Karly to schedule a call with the Doodla team; Mark to join
- Action: Submit disposal request to Amazon for the flagged AWD units
2. New Shipments — Bypass AWD, Ship Direct to FBA
All future inventory shipments should go directly to FBA, bypassing AWD entirely. This keeps inventory under standard FBA FIFO handling and avoids the expiry risk inherent in AWD's distribution model.
- Owner: Karly
- Action: Prepare next FBA shipment and route directly to FBA (not AWD)
3. Inventory Cap — 3-Month Maximum
Implement a strict 3-month inventory cap going forward to prevent any future expiration issues, regardless of fulfillment channel.
- Rationale: Doodla sells perishable food products with finite shelf life; overstocking creates write-off risk
- Owner: Karly + Doodla team to align on reorder cadence
4. High-Velocity Items — Replenish Promptly
1lb black beans are a high-velocity SKU. Include them in the next FBA shipment to restore availability quickly after the AWD units are disposed of.
- Action: Karly to prepare FBA shipment for 1lb black beans (units with 18+ month expiry); send to Jason for review with Mark
5. Low-Velocity Items — Hold Reorders
Do not reorder slow-moving items (e.g., 25lb kidney beans) until the AWD situation is fully resolved and inventory levels are confirmed.
Action Items
- [ ] Schedule call with Doodla team re: AWD expiry disposal — Mark to join (@Karly)
- [ ] Submit Amazon disposal request for expiring AWD units
- [ ] Prepare FBA shipment for 1lb black beans (18+ mo expiry); send to Jason; review with Mark (@Karly)
- [ ] Confirm all future shipments routed to FBA, not AWD
- [ ] Align with Doodla on 3-month inventory cap and reorder schedule
Key Decisions
| Decision | Rationale |
|---|---|
| Dispose of AWD stock (not return) | More cost-effective than return shipping |
| Shift all new shipments to FBA | Avoids AWD's non-FIFO expiry risk |
| 3-month inventory cap | Prevents future expiration write-offs on perishable SKUs |
| Hold reorders on slow-moving items | Avoid compounding the problem before AWD is cleared |
Background: AWD vs. FBA
Amazon Warehousing & Distribution (AWD) is a bulk storage program designed to feed FBA fulfillment centers. However, AWD does not guarantee FIFO inventory rotation, which creates expiry risk for perishable products. Standard FBA fulfillment centers handle FIFO more reliably for date-sensitive goods. For Doodla's food products, FBA direct is the safer fulfillment path.
Related
- [2]
- [3]