How Many Fulfillment Centers Does Amazon Have Worldwide – Please DO NOT call us if you need to speak with Amazon or need their phone numbers. We are not Amazon. This article is for informational purposes only.
This is an article documenting Amazon’s network of global fulfillment centers. MW PVL International does not represent Amazon in any way and this article is for informational purposes only.
How Many Fulfillment Centers Does Amazon Have Worldwide
It all started in July 1994, when former investment banker Jeff Bezos left New York for Seattle to open a new online bookstore. Amazon.com took shape over the next 12 months, and the company’s online store saw its first sales in July 1995. By the end of 1996, Amazon.com generated $15.7 million in sales. On May 15, 1997, Amazon.com raised $54 million in capital through an IPO on the NASDAQ (AMZN). The company grew at an astonishing rate, and by the end of 1999, sales reached $1.6 billion.
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In 2000, Amazon took a turn for the worse when they reported a quarterly financial loss of $323 million. A subsequent quarterly loss of $200 million sent the company’s stock price down 70%. The losses continued until 2000, when Amazon reported a massive loss of $1.4 billion that year. There has been speculation on the street that Amazon will file for bankruptcy, and the company’s stock has fallen so far. In 2001, a major cost-cutting and restructuring effort returned the company to profitability, and Amazon hasn’t looked back since. While Amazon has not been a consistently profitable company, the company has had an unprecedented impact on the retail industry, largely due to its visionary leadership and continued investment in the company’s sophisticated supply chain.
In 1997, Amazon started its distribution network with two fulfillment centers in Seattle and Delaware. The original 93,000-square-foot Seattle facility was largely manual and now seems small compared to the new fulfillment centers being built today. The 202,000-square-foot facility in New Castle, Delaware was undoubtedly a bold play in November 1997. In 1999, Amazon expanded by adding fulfillment centers in: Fernley, NV; Coffeyville, KS; McDonough, GA (later closed in 2001); Campbellsville, KY; and Lexington, KY. At the same time, Amazon expanded into Europe with fulfillment centers in Regensburg, Germany; Bad Hersfeld, Germany; and Marston Gate, United Kingdom. Things were then relatively quiet on the expansion front until 2005, and since then Amazon’s worldwide order fulfillment network has grown at a remarkable rate.
In 2022, Amazon’s distribution network was affected by the company’s need to reduce operating costs. More than 90 buildings were closed, canceled or postponed, mainly in the US. In 2023, we predict that similar reductions will occur elsewhere in the world.
To the best of our knowledge, Amazon operates the following global distribution infrastructure as of Q1 2023:
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Currently, Amazon operates a variety of different types of fulfillment in the United States, including small, large, large, large, specialty apparel and footwear, specialty small parts, returns processing centers, and outsourced 3PL facilities. A detailed list of all existing and known Amazon Fulfillment Centers is shown in the table below. All figures given are estimates based on our research. Please note that the square footage figures below do not include intermediate areas.
Amazon currently operates a network of ambient and refrigerated grocery distribution centers across the U.S. Amazon.Fresh customer orders service. This distribution network is developing slowly and the list of facilities below is probably incomplete. Some of Amazon’s food-related facilities are shared with other operations, such as sorting center facilities. The buildings listed below are partially or fully used for Amazon.Fresh operations.
Amazon purchased Whole Foods in August 2017, taking ownership of the Whole Foods retail distribution network. Whole Foods’ existing distribution network is largely focused on perishable goods for its retail stores in each major market region served, as documented below.
In late 2014, Amazon began rapidly building a distribution network consisting of smaller urban distribution buildings located near the centers of major metropolitan cities across the country. Amazon’s Prime Now Hubs are typically stocked with the fastest-selling items like bottled water. These facilities only stock a limited line of products (e.g. 15,000 different products) so that Amazon Prime Now members can place orders for those goods and receive expedited delivery in as little as 60 minutes from the time the order is placed. It is very likely that this construction will continue in the future as these buildings are the equivalent of retail stores for Amazon. Note that if the facility’s square footage is set to zero in the table below, the plant is located in another building, so square footage is not counted twice.
Top 10 Largest Warehouses In North America
Information regarding the Amazon Prime/Fresh network is difficult to track down and this is the best information currently available.
Formerly called redistribution centers, the inbound cross dock network was developed by Amazon to streamline the flow of goods into a network of fulfillment centers. These facilities are similar to import distribution centers in that they are used as inventory reception, bulk cargo offloading, and storage buffers for overseas import containers arriving from foreign vendors. When goods arrive at the ports, they are received at the IXD facility and held until the fulfillment center needs to be replenished with inventory. The goods are combined into trucks and then transported to the fulfillment center. These facilities are located near major ports to reduce the input cost of ground transportation from the port to the IXD facility. These facilities can also be used to store and restore domestic goods.
Amazon currently operates a network of regional fulfillment centers across the United States to increase control over the outbound transportation of packages within its own distribution network (for more detailed information on Amazon’s fulfillment network, click here). These buildings are crucial for organizing outbound packages by country region and carrier. The purpose of these capabilities is to sort packages into pallets by zip code so they can be transferred to an Air Hub (for out-of-region packages) or an Amazon fulfillment station or USPS post office responsible for the Zip Code. Packages shipped by UPS are picked up directly at the fulfillment center and are mostly not processed by Amazon’s sorting centers.
This system was introduced in the US in 2014 and was instrumental in Amazon taking more control over its outbound shipping operations and costs. Fulfillment centers are usually, but not always, stand-alone buildings within the Amazon network. Sorting centers can handle packages for a regional area on behalf of one or more delivery centers.
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Amazon currently operates a network of Air Gateway fulfillment centers across the United States. These facilities are usually located very close to airports used to transport Amazon Prime Air customers’ packages from one region of the country to another. At the air hub facilities, packages arrive from a nearby delivery center and are placed in standard air containers that are loaded onto cargo planes late at night. Airplanes fly from each regional airport to the center of the country, which is in Hebron, Kentucky, where the central package sorting center is located. The main hub sorts the packages by region, and the planes are then loaded with packages for each of their regions, flying home with packages that have been dispatched from other Amazon Fulfillment Centers in the network. It is a hub and spoke system consisting of one central hub connected to 25 spokes, the spokes being various regional airports around the country. This is the foundation that allows Amazon to pick a customer’s order in Seattle and deliver it to a customer in New York within 1-2 days. It’s very important that Amazon can manage national package shipments with the Amazon Logistics platform in this way, instead of relying on UPS for FedEx for some (but not all) of its domestic shipping volume. Over time, Amazon has been building out its networks of air hubs and delivery stations to allow significantly higher shipping volumes to be handled by Amazon instead of third-party carriers and, needless to say, at lower operating costs.
This massive logistics network is unique to Amazon in the sense that no other retailer in the world has developed such a concept simply because no other retailer has the scale to cost-effectively execute this logistics system. Looking ahead, Amazon will no doubt build a similar hub and aerial network in Europe, with the main hub likely to be in the epicenter of the continent (e.g. near Frankfurt, Germany). This will allow a customer in Spain to receive an order picked in the UK within 24 to 48 hours of placing the order. Looking ahead, multi-airline hub connectivity will be the next so global
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