Where Does Amazon Ship Billions of Packages From?
With millions of customers worldwide ordering on Amazon every day, many wonder – how does Amazon ship all those packages so rapidly? By utilizing a smart global fulfillment network, Amazon delivers over 5 billion packages annually from more than 220 state-of-the-art fulfillment centers around the world.
Scale of Amazon‘s Delivery Operations
Amazon‘s 2020 net sales reached $386 billion globally. To handle fulfillment for this massive volume, they have built one of the largest supply chain networks on the planet:
| Region | # of Fulfillment & Sortation Centers | Total Square Footage |
|---|---|---|
| North America | 142 | Over 200 million |
| Europe | 75 | Over 100 million |
| Asia | 10+ | Over 20 million |
*Statistics from MWPVL International & Amazon 2021 earnings reports
Encompassing over 300 million square feet around the world, Amazon has the warehouse capacity to store huge quantities of products to ship quickly. Their facilities utilize advanced technologies like robotics, AI, and automation to fulfill orders rapidly.
End-to-End Order Fulfillment Process
When you click purchase on Amazon, here is what happens behind the scenes:
- Inventory Allocation: Based on your location, available inventory is allocated from the nearest fulfillment center that stocks the products.
- Pick & Pack: Associates and robots work together to efficiently pick products from inventory and prepare orders for shipping.
- Shipping: Boxes are loaded onto containers based on delivery speed – air or ground freight.
- Delivery: Orders ship via carriers like USPS, FedEx and Amazon‘s own provider – Amazon Logistics.
- Receipt: Packages are delivered conveniently right to customers‘ homes in as fast as just one day for Prime members.
Leveraging algorithms and automation enables high throughput to meet Amazon‘s standard delivery times.
Amazon or Seller Fulfilled?
While Amazon focuses on rapid Prime delivery for items they fulfill themselves, 3rd party sellers on Amazon Marketplace have a choice of fulfillment models:
Fulfillment by Amazon (FBA)
| Pros | Cons |
|---|---|
| Fast Prime delivery | Higher Amazon fees |
| Access to Amazon warehouses and shipping | Less control over branding & packaging |
| More sales due to Prime eligibility | Must follow Amazon inventory rules |
Seller-fulfilled
| Pros | Cons |
|---|---|
| Lower overall fees | Slower shipping times |
| More customization options | More operational effort |
| Keep excess inventory at own warehouses | Ineligible for Prime |
Though FBA has extra costs, it provides small sellers the infrastructure to scale up sales rapidly.
Where Your Order Ships From
Amazon strategically places fulfillment centers near high population centers keeping plenty of their ~100 million Prime items in stock locally for quick delivery.
| Popular Inventory Types | Primary Fulfillment Centers |
|---|---|
| Books, toys, household items | Large regional warehouses |
| Groceries, fresh items | Local city facilities |
| Electronics, luxury goods | Large metro area warehouses |
So if you are on the West Coast, your Nike shoes likely ship from a Los Angeles fulfillment center, while customers in Dallas receive kitchen supplies from the Houston-area center. With hundreds of facilities placed near most major cities, Amazon can meet their one and two-day delivery windows globally.
As Amazon continues expanding warehouses and their transportation fleet, they aim to make two-day Prime the standard – with same and next day even faster. So no matter your location, Amazon ships from closer than you think!
