Amazon fulfillment centers are giant warehouses that store millions of products. They serve as the foundation of Amazon's logistics network, optimized for efficiency and speed.
After a customer order is received, workers pick the purchased items from fulfillment center shelves. The order is packed, sealed, and shipped via Amazon's large network of shipping partners.
As of 2022, Amazon has over 450 active fulfillment and sortation centers globally. These facilities have a total storage footprint exceeding 150 million square feet.
By handling inventory storage, order processing and shipping themselves, Amazon can deliver products faster and more cost-effectively. This enables competitive pricing and convenience.
FBA allows third-party sellers to store products in Amazon fulfillment centers. Key benefits include fast Prime shipping, reduced logistics costs and access to Amazon's customer base.
Amazon charges FBA fees including monthly inventory storage fees, order fulfillment fees and outbound shipping fees. There may also be other variable fees depending on the product.
Strategic fulfillment center locations, advanced inventory and order management technology, and integrated transportation enable Amazon to often ship products within 1-2 days domestically.
