Amazon.com Inc (AMZN.O) introduced a new service on Wednesday to help its sellers store bulk inventory and ease distribution to tackle supply-chain issues, the company said in a blog post.
The new service, called Amazon Warehousing and Distribution (AWD), is now available for sellers using Amazon’s program which allows businesses to outsource order fulfillment to the company.
The sellers can use the pay-as-you-go service to store and distribute their inventory within Amazon’s fulfillment network.
In 2023, Amazon will expand AWD to off-Amazon destinations as well.
“Amazon Warehousing & Distribution addresses critical supply chain challenges and helps sellers grow and manage their business while significantly cutting costs,” Gopal Pillai, vice president of Amazon Distribution and Fulfillment Solutions, said in the blog post, without disclosing further details.
The development comes after Amazon said it has started slowing warehouse openings to rein in costs.