---
title: Doudlah Farms — Amazon AWD Inventory Crisis & FBA Migration
type: article
created: '2026-04-05'
updated: '2026-04-05'
source_docs:
- raw/2025-11-12-weekly-call-w-gilbert-101102516.md
tags:
- amazon
- fba
- awd
- inventory
- doodla
layer: 2
client_source: null
industry_context: null
transferable: true
---

# Doudlah Farms — Amazon AWD Inventory Crisis & FBA Migration

## Overview

During the November 2025 weekly review, Mark and Gilbert identified a significant inventory management crisis stemming from Amazon's AWD (Amazon Warehousing & Distribution) service. Unreliable replenishment, full AWD warehouses, and approaching expiration dates on perishable goods forced an immediate pivot to FBA-only fulfillment and a more aggressive inventory ceiling policy.

Related meeting: [[meetings/2025-11-12-weekly-call-gilbert-doodla-inventory-google-ads]]

---

## The AWD Problem

Amazon AWD was originally adopted for Doodla because it offered lower per-unit shipping and storage costs, particularly for bulk pallet shipments. Over time, however, several compounding issues made it untenable:

- **Replenishment failures:** AWD was not reliably transferring stock to FBA fulfillment centers, causing phantom inventory — units that existed in AWD but were unavailable for customer orders.
- **Warehouse capacity locks:** Amazon declared AWD full, blocking new inbound shipments entirely.
- **Expiration date enforcement:** AWD will not ship any product expiring within two months, leaving perishable goods stranded and unsellable.

> *"AWD became unreliable because they were giving us all this trouble about replenishment, and we were having all kinds of problems with it. And then I tried to make a shipment into AWD, and it said that AWD was full."*
> — Mark Hope

---

## Expired & At-Risk Stock

Several SKUs were flagged as expired or imminently expiring at the time of the call, with no viable path to sale:

| Product | Location | Status |
|---|---|---|
| 1 lb Pinto Beans | AWD | ~1,000 units; will not sell through in time |
| 1 lb Black Beans | AWD | Already flagged by Amazon as expired |
| 25 lb Kidney Beans | AWD | 26 units; flagged for disposal |

These units are expected to be disposed of by Amazon, representing a direct write-off. The root cause was over-stocking AWD during the initial launch phase when the goal was to build a deep buffer.

---

## Resolution: FBA-Only Migration

The immediate corrective action was to halt all new AWD shipments and route everything directly to FBA. Key directives from the call:

1. **All new inbound shipments go to FBA only** — including Carly's upcoming order, which Mark confirmed should be redirected.
2. **Maximum inventory target: 3–4 months on hand** — enough to avoid stockouts without risking expiration or excessive storage fees.
3. **AWD to be monitored but not used** — the team will watch for stability improvements before reconsidering AWD, potentially for high-velocity SKUs like popcorn.

> *"What we need to do is keep our inventory at three months or four months or less and have everything at FBA, at least for a while."*
> — Mark Hope

---

## Coupon Policy for Excess Inventory Liquidation

To accelerate sell-through of existing overstock before expiration, a tiered coupon policy was established:

| Inventory Age | Coupon Discount |
|---|---|
| 6–12 months on hand | 20% off |
| > 12 months on hand | 25% off |
| < 6 months on hand | No coupon required (unless new product launch) |

Specific SKUs actioned during the call:
- **1 lb Pinto Beans** → increase to 20–25%
- **25 lb Great Northern Beans** (14 months inventory) → set to 25%
- **25 lb Yellow Popcorn** (14 months inventory) → coupon re-enabled at 25%
- **Whole Wheat Flour** (>6 months) → increase from 10% to 20%

The guiding principle: selling at a 20–25% discount is always preferable to disposal at zero recovery.

> *"We'd rather sell it at a 20% or even a 30% discount than to throw it away."*
> — Mark Hope

---

## Ongoing Inventory Management Targets

Going forward, the Doodla account should be managed against these guardrails:

- **Hard ceiling:** No SKU should exceed 6 months of inventory on hand
- **Coupon trigger:** Any SKU crossing 6 months automatically gets a 20% coupon
- **Escalation trigger:** Any SKU crossing 12 months escalates to 25% coupon
- **AWD moratorium:** No new AWD shipments until the service demonstrates stability

---

## Related Articles

- [[knowledge/amazon-strategy/doodla-coupon-liquidation-policy]]
- [[knowledge/amazon-strategy/old-world-popcorn-organic-targeting-strategy]]
- [[clients/doodla/_index]]