Amazon Sellers Turn to Satellite Warehouses Amid FBA Storage Limits

This article provides an in-depth analysis of Amazon's satellite warehouse (STAR) and AWD (Amazon Warehousing & Distribution) solutions. It compares their requirements, advantages, and limitations, offering a detailed guide on application and usage. This information aims to help sellers overcome FBA storage constraints, enabling flexible inventory management and success during peak seasons. Learn how to leverage these warehousing options to optimize your Amazon business and navigate the challenges of FBA capacity limits.
Amazon Sellers Turn to Satellite Warehouses Amid FBA Storage Limits

Imagine peak season approaching—your competitors are gearing up to maximize sales while you're stuck watching your best-selling products gather dust in warehouses, unable to ship to Amazon's fulfillment centers due to storage limits. The frustration is real, but Amazon has prepared alternative solutions.

1. Amazon STAR: AGL-Powered Flexible Replenishment

Amazon's Satellite Inventory (STAR) functions like an orbital support system for FBA warehouses. Its primary purpose mirrors Amazon Warehousing & Distribution (AWD): maintaining inventory reserves outside FBA storage limits while enabling timely replenishment to prevent stockouts and maintain optimal inventory performance metrics.

Key Features of STAR:

  • AGL-Exclusive Access: Requires shipment through Amazon Global Logistics (AGL)
  • Automated Replenishment: System monitors FBA stock levels and triggers transfers (7-10 business days) when inventory runs low
  • Three-Stage Process: Domestic pickup → International shipping → Strategic placement in nearest satellite warehouse

STAR vs. FBA: Critical Differences

  • No Capacity Restrictions: Doesn't impact IPI scores or incur overage fees
  • Cost Advantage: Lower storage fees for standard-size, non-hazardous items (currently $1.00/ft³ replenishment fee added)
  • Presale Capability: Enables customer purchases during FBA-to-STAR transfers
  • SKU Limitations: Maximum 40 SKUs with no mixed-case packaging
  • Product Exclusions: Prohibits batteries, footwear, jewelry, perishables, and regulated dangerous goods
  • Velocity Requirements: Best for slower-moving inventory (4+ week turnover)
  • Account Requirement: Mandatory AGLC account

Accessing STAR Services

Currently invitation-only for US sellers, with weekly updated eligibility lists. Two application methods exist:

  1. Via Shipper Central's FBA satellite warehouse service
  2. Through Seller Central's inventory planning dashboard

2. AWD: Third-Party Logistics Integration

Amazon Warehousing & Distribution offers greater flexibility by permitting third-party logistics providers to manage inventory in strategically located warehouses near FBA centers. Like STAR, it automatically replenishes FBA stock—when capacity exists.

Pay-As-You-Go Pricing Model

  • Storage Fees: Calculated daily by actual cubic footage used
  • Handling Charges: Applied to all inbound/outbound movements
  • Transportation Costs: Incurred during AWD-to-FBA transfers

Product Restrictions

AWD prohibits identical categories to STAR plus additional limitations:

  • Unclassifiable merchandise
  • Oversized/heavy items
  • Temperature-sensitive goods
  • Multi-ASIN packaged products

Operational Advantages

  • Real-time shipment tracking
  • No mandatory AGL requirement
  • Available to invited US sellers regardless of AGLC status

Important Considerations

AWD cannot override FBA capacity limitations—if fulfillment centers lack space, automatic replenishment pauses regardless of AWD stock availability. Sellers cannot transfer excess FBA inventory to AWD facilities.

Strategic Implementation Guide

Both solutions effectively circumvent FBA storage constraints, but optimal selection depends on:

  • Product characteristics and turnover rate
  • Logistics preferences and existing partnerships
  • Inventory management sophistication
  • Seasonal sales patterns