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Amazon Fulfillment Center: Functions, Charges, & Locations

sahil bajaj

Sahil Bajaj

Senior Specialist - Marketing @ Shiprocket

March 5, 2024

9 min read

Amazon fulfillment Centers have been set up to help businesses store, pack, and ship their goods in an efficient and hassle-free manner. The Fulfillment by Amazon (FBA) program eases the aforementioned tasks in addition to providing excellent customer service for all the items you sell on Amazon. 

Amazon is a reliable logistics partner that has helped numerous businesses around the world establish a strong foothold in the market. Statistics reveal that around 94% of Amazon sellers opt for Fulfillment by Amazon. Amazon fulfillment centers ensure that your goods are stored securely and systematically. In addition to this, all your orders are packed appropriately and shipped promptly. But how do these fulfillment centers work, what do they cover, and where are they located? You shall learn all about them as you read further.

Amazon Fulfillment Centers

Amazon Fulfillment Center: A Detailed Overview

Amazon fulfillment centers have been established to help sellers store their goods in a secure facility and ship them timely upon receiving the orders. Those selling their products through Amazon should adhere to its standards. Amazon employs trained staff to arrange different items from various sellers efficiently and pick them carefully upon receiving the order. They pack the ordered items appropriately and follow the set guidelines while shipping them. These strategically designed and tactfully positioned centers are known for handling large volumes of products resourcefully. An Amazon fulfillment center’s average size is around 800,000 square feet. The use of advanced technology plays a key role in managing the order fulfillment process smoothly.

By choosing Amazon fulfillment centers, thousands of businesses around the world are offering excellent shopping experiences to their customers. It has accelerated the growth of several small and medium-sized businesses across various industries. This has been possible because of the vast reach and streamlined operations of these centers. They enable fast and efficient delivery of goods which is crucial to ensure customer satisfaction. Amazon has most certainly revolutionized the order fulfillment system. Its fulfillment centers play a key role in the growth of numerous eCommerce stores worldwide.

To use this facility for your business, you must create an Amazon seller account. Thereafter, share your products with Amazon via your account to get started with the sales process.

How Does an Amazon Fulfillment Center Function?

Amazon fulfillment centers follow a systematic approach to store your goods, prepare them for shipment, and manage various other tasks that form a part of the order fulfillment process. Here is a look at how this facility functions:

  1. Receiving the Goods

The first step in the process is receiving the goods at the center. As a business owner, you must send your items to the fulfillment centers safely. The workers at these centers, check each product sent by you carefully to assess its quality and accuracy. Each product is assigned a unique identification code after assessment. The code is for tracking purposes.

  1. Storage of Goods

After the products are checked and assigned unique codes, they are segregated mostly based on their category and size. Thereafter, they are stored in their designated area. New-age inventory management systems are deployed at these facilities to ensure optimal use of the available space.

  1. Receiving the Order and Picking the Product

As a customer orders an item on Amazon, the information is shared with the nearest fulfillment center that has that product in stock. Thereafter, Amazon picks the items from the storage facility. To locate the products quickly, the workers mostly use handheld devices. The use of robots is also a common sight in Amazon centers. The products are scanned and sent for packing.

  1. Packing the Products

The workers check each item to understand the kind of packing it requires. They make use of appropriate packing material and pack all the items carefully. An exclusive space is designated to carry out the packaging task. It is referred to as the packing station. At the time of packing, the staff members may add promotional items or choose a packing material designed for brand promotion. Such instructions are provided by the business owners. The packets are sealed carefully to ensure safe shipment. They are also labeled appropriately for fast and efficient delivery. 

  1. Shipping the Orders

The packed orders are segregated based on their destination and sent to the shipping partners who deliver them to the customers. Amazon partners with reputed shipping carriers such as FedEx to ensure the packages are shipped safely and reach their destination timely.

Advantages of Utilizing Amazon Fulfillment Centers

Here is a look at the various advantages of choosing Fulfillment by Amazon program: 

  1. Efficient Inventory Management

Inventory management is a huge task. It requires investment in terms of time and money but not when you choose to use the Fulfillment by Amazon program. The eCommerce giant uses advanced inventory management systems and has a team of well-trained staff to handle the process. It keeps real-time track of the inventory levels so that you do not face the problem of overstocking or understocking. It also uses data analytics to forecast demand patterns. This further helps in maintaining an appropriate quantity of stock at all times.

  1. Safe and Secure Storage 

Amazon fulfillment centers have high-security measures in place. This includes the installation of surveillance cameras and access control systems. There are strict guidelines to ensure the safety of the goods stored in these facilities. Preventing theft and damage to your products is the top priority of the fulfillment center staff. You can be sure that your goods will remain safe in these secure facilities. 

  1. Excellent Customer Service

There is no need to invest money and effort in building a customer service team when you choose Amazon. The company has an efficient team of customer service executives who take care of all the queries and complaints related to FBA orders. They are trained to handle the customer concerns effectively.

  1. Trust Building

Amazon is a big brand that has gained credibility worldwide. Statistics reveal that 51% of online buyers start their product searches on Amazon. By using its Fulfillment program, you can build a sense of trust in your target audience. Customers do not hesitate to try products that are fulfilled by Amazon. It helps establish trust and brings business.

  1. Enables Scalability

By choosing an Amazon fulfillment center, you do not have to worry about a key area of concern while scaling your business. Yes, we are talking about storing and managing the increased volume of inventory. It takes care of your logistics so that you can concentrate on other business activities.

  1. Peak Season Adjustments

Amazon allows you to use more storage space during peak season and reduce it when the demand is low. So, you can cut down on your storage expenses when the business is slow. 

  1. Amazon Prime Eligibility

Amazon FBA makes your products eligible for Amazon Prime’s free and speedy shipment. Prime members mostly look for products that are eligible for Prime shipping. Thus, it helps increase your sales.

Charges for Using Amazon Fulfillment Center

To use Amazon fulfillment centers, you are required to pay FBA and referral fees. Here is a brief look at these charges:

  • Size-Based Fees – Amazon charges based on the weight and size of your products. There are mainly two size categories. These are standard size and oversize.
  • Referral Fees – Amazon charges a referral fee for all your sales. It may vary based on the category but is usually 15% of each sale.

Amazon Fulfillment Centers: Locations Around the Globe

There are numerous Amazon fulfillment centers across the globe and their number is growing with every passing year. Here is a look at some of the locations around the world where these centers are located:

  • Connecticut
  • Arizona
  • Florida
  • California
  • Delaware
  • Georgia
  • Idaho
  • Kentucky
  • Indiana
  • Kansas
  • Maryland
  • Nevada
  • New Jersey
  • New York
  • Texas
  • Washington
  • Canada
  • India
  • United Kingdom
  • Germany
  • France
  • Czech Republic
  • Italy
  • Spain
  • Ireland
  • Poland
  • Slovakia

Criteria for Choosing Locations For Amazon Fulfillment Centers

Amazon considers various factors while choosing locations for its fulfillment centers. Some of these factors include the real estate cost, supplier accessibility, market demand, and availability of workforce to name a few. 

Conclusion

Amazon fulfillment centers have contributed to the growth of several businesses by easing their logistics needs. Thousands of businesses around the globe use this advanced facility provided by the renowned company. The use of high-tech technology, adherence to strict safety guidelines, efficient inventory management, and excellent customer care service lie at the core of the FBA program.

Amazon fulfillment centers are located in various parts of the world. They are mostly situated near major transportation hubs. Their location is selected strategically to enable the swift movement of goods. The widespread network of these fulfillment centers can accelerate the growth of your business. You can use it by making a small investment.

Amazon partners with various reputed shipping companies to transport and deliver your products safely in a time-bound manner. You can sync your Amazon marketplace with Shiprocket and utilize the excellent international air cargo shipping service and many other logistics solutions provided by CargoX. It serves more than 100 international destinations and offers B2B delivery.

Is there any restriction on the size or weight of the items stored in the Amazon fulfillment centers?

Yes, there are some restrictions on the size and weight of the items stored in Amazon fulfillment centers. The restriction varies from center to center. It is also dependent on the product type. Special guidelines have been set by Amazon for packing and shipping heavy and oversized goods. If your business requires storing and selling huge items, then it is best to consult Amazon’s Seller Support before booking the facility.

Are the Amazon fulfillment centers eco-friendly?

Sustainable business practices have been implemented at Amazon fulfillment centers to lower the impact on the environment. Some of these include using energy-efficient technologies, opting for renewable energy sources, and minimizing packaging waste.

Can FBA products be delivered to places outside India?

Yes, you can sell and deliver your FBA products to more than 200 locations around the globe. You just have to ship your products to Amazon fulfillment centers located in your preferred international location. Your goods will be stored safely in these centers. Thereafter, the center shall take care of packing and delivering your products to your customers.

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