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Amazon Global Fulfillment Center Network

Amazon Fulfillment Center Network

Please do NOT call us if you need to speak to Amazon or need their phone numbers.  We are not Amazon. This is a news article for informational purposes only.

Introduction

This is an article that documents the Amazon global fulfillment center network as at October, 2014. 

It all started in the July, 1994 when former investment banker Jeff Bezos left New  York City for Seattle to launch a new on-line book store.  Amazon.com took shape over the next 12 months and the company's web storefront recorded its first sale in July, 1995.  By year-end 1996, Amazon.com had generated $15.7 Million in sales.  On May 15, 1997 Amazon.com raised $54 Million of capital with an IPO on the NASDAQ (AMZN).  The company grew at an astonishing pace with sales reaching $1.6 Billion by the end of 1999.

In 2000, Amazon took a sharp turn for the worse when a quarterly financial loss of $323 Million was reported. A subsequent quarterly loss of $200 Million sent the company share price tumbling by 70%.  Losses continued through 2000 with Amazon reporting a massive $1.4 billion loss for the year.  Speculation on the street was that Amazon would file for bankruptcy and the company's stock hit an all time low.  In 2001, a major cost cutting and restructuring effort restored profitability to the firm and Amazon has not looked back since. Having said this, the company has still not generated any significant profits since this time.

From a distribution strategy perspective, Amazon started with two fulfillment centers in Seattle and Delaware. The original 93,000-square-foot Seattle facility was largely manual and now seems tiny relative to most of the new fulfillment centers being built today.  The 202,000-square-foot facility in New Castle, Delaware was undoubtedly a brave gamble back 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, UK.  Things then went relatively quiet on the expansion front until 2005 and since then Amazon's fulfillment network has been growing at an incredible pace around the world.

Today, Amazon is without a doubt the most feared competitor of Walmart, Target, and Best Buy amongst other firms.  With 2013 sales revenues of $74.5 Billion, predictions on the street are that the company is expected to hit $100 Billion in sales by 2015.  To support this growth, Amazon has developed an extensive network of global fulfillment network centers that continues to expand at an unprecedented rate.  In 2011 - 2012, the company added 19 fulfillment centers totaling 17 Million square feet of space in North America (including Canada). In 2013, Amazon added 8 new massive fulfillment centers in North America totaling 7.7 Million square feet. Outside of North America, Amazon added 20 new fulfillment centers exceeding 13.4 Million square feet in 2011-2012; In 2013, Amazon opened 4 new fulfillment centers in the France, Germany, China, and Italy as well as 7 smaller footprint fulfillment centers in the UK. 

As of October 2014, the company operates 131 active distribution center buildings around the world (including fulfillment centers, sortation centers, returns centers, specialty centers, redistribution centers, etc. but excluding externally operated UK delivery depots). These facilities total 88.3 Million square feet. Plans for are unfolding for the future and we are aware of 18 new distribution center buildings (including new U.S. sortation centers) exceeding 9.4 Million square feet to be opened in North America and another 5 distribution center buildings (excluding externally-operated UK delivery depots) exceeding 2.1 Million square feet in the rest of the world.

Amazon’s Fulfillment Network in North America

As of October, 2014, Amazon operates 66 distribution centers (including fulfillment centers, specialty facilities, redistribution centers, returns centers and 3PL outsourced facilities) in North America exceeding 51.3 Million square feet of space. In addition, Amazon currently operates a network of 8 dedicated sortation centers to gain control of the last mile delivery process and these facilities total approximately 2.4 Million square feet. A detailed listing of all facilities appears in the table below.  All figures provided are estimates based on our research.  We have included the Zappos.com and Endless.com  fulfillment centers but we have excluded other subsidiaries such as Diapers.com.  Please note that the square footage figures below exclude mezzanine areas unless otherwise indicated.

Go Back to Network Strategy

Fulfillment

Center

Location

Country

Square

Feet

Year

Opened

Description of Operation

PHX3

6835 West Buckeye Road, Phoenix, Arizona, 85043

United States of America

1,000,000

September

2007

  • Big Sortable
  • Opened in 2007 at 605,000 Sq. Ft.
  • Expanded by 400,000 Sq. Ft.  in Dec 2011

PHX5

16920 W. Commerce Dr. , Goodyear, Arizona, 85338

United States of America

1,200,000

June

2008

  • Non-sortable
  • Opened in 2008 at 800,000 Sq. Ft.
  • Expanded to 1.2 Million Sq. Ft + a 230,000 sq ft mezzanine in 2011.

PHX6

TFC1

4750 & 5050 West Mohave Street, Phoenix, Arizona, 85043

United States of America

1,207,000

October

2010

  • Big Sortable in 1/2 of building
  • Small Sortable in other 1/2

PHX7

800 N. 75th Ave, Phoenix, Arizona, 85043

United States of America

1,200,000

September

2011

 

ONT2

1910 E. Central Ave., Southgate Building 3, San Bernardino, California, 92408-0123

United States of America

951,700

October

2012

  • Small Sortable
  • 1400 associates 

ONT5

2020 E. Central Ave., Southgate Building 4, San Bernardino, California, 92408-2606

United States of America

514,600

October,

2013

  • Building 4 conected to Building 3
  • ONT5 services Amazon.Fresh  Grocery orders to a subset of the Los Angeles market
  • ONT5 also serves as a Sortation center for Greater Los Angeles

OAK3

255 Park Center Drive, Patterson, California, 95363-8876

United States of America

1,000,000

 September,

2013

  • Processes larger products such as barbecues and appliances.
  • Estimated 300 jobs created

OAK4

1555 N. Chrisman Rd, Tracy, California, 95304-9370

United States of America

1,000,000

October,

2013

  • Facility includes automation / robotics (Kiva) for small sortable products
  • Estimated 1,000 jobs created

XUSD

1909 Zephyr Street, Stockton, California

United States of America

508,000

October,

2013

  • Facility is a fulfillment center that is outsourced to 3PL Menlo Logistics

OAK5

3811 Cherry Street, Newark, California, 94560

United States of America

574,650

Planned for 2014

  • Facility will be a new sortation center to service the San Francisco Bay area.

ONT6

24208 San Michele Rd, Moreno Valley, California, 92551

United States of America

1,200,000

August

2014

  • Facility opened August 26, 2014 with up to 1000 people to be employed.

ONT7

2125 W. San Bernardino Ave., Redlands, California, 92374

United States of America

700,000

October

2014

  • Ships large items like televisions
  • Opened Oct. 14, 2014

BDL1

801 Day Hill Road, Windsor, Connecticut, 06095

United States of America

1,000,000

Planned for

Dec. 2014

  • 300+ full time people will be hired
  • 1 M SF + 500,000 SF Mezzanine
  • Will ship large items like televisions

PHL1

1 Centerpoint Blvd, New Castle, Delaware, 19720

United States of America

202,000

November

1997

  • Big Sortable
  • Amazon’s 2nd DC in its network

PHL7

560 Merrimac Ave, Middletown, Delaware, 19709-4652

United States of America

1,200,000

October

2012

  • 1600 full time associates + 3,500 seasonal workers at peak

MCO1

205 Deen Still Road , Davenport, Florida, 33897

United States of America

270,000

2014

  • Sortation Center to service Tampa Bay & Lakeland FCs

TPA1

351 30th Street NE (Southshore Corporate Park), Ruskin, Florida, 33570

United States of America

1,100,000

September

2014

  • Small Sortable
  • 1000 full time people + 100 seasonal workers.
  • Investment is $200 Million. 

LAL1

1760 County Line Rd. , Lakeland, Florida, 33811

Copyright Offense MWPVL

United States of America

1,000,000

Planned for 2014

  • Facility confirmed in Oct 2013
  • Large non-sortable items such as televisions
  • 248 full time people + up to 137 seasonal workers.
  • Investment is $102 Million. 

MIA1

1900 NW 132nd Place, Doral (Miami), Florida, 33182

United States of America

335,800

Planned for 2014-15

  • Sortation center located due west of Miami International Airport
  • Facility leased in 2014

ATL6

4200 North Commerce, East Point, Georgia, 30344

United States of America

301,200

March

2014

  • Sortation Center to service Atlanta market

IND1

4255 Anson Blvd, Whitestown, Indiana, 46075

United States of America

1,000,000

August

2008

  • Big Sortable
  • Expanded by 400,000 Sq. Ft. in February, 2011
  • 2,000 associates

IND2

IND3

715 & 717 Airtech Parkway, Plainfield, Indiana, 46168

United States of America

947,300

October

2008

  • Non-Sortable
  • 1,200 associates

IND4

710 S. Girls School Road, Indianapolis, Indiana, 46231

United States of America

902,850

June

2011

  • Dedicated Text Book FC

IND5

800 Perry Road, Plainfield, Indiana, 46168

United States of America

925,800

August

2011

  • Non-Sortable

SDF8

900 Patrol Road, Jeffersonville, Indiana, 47130-771

United States of America

1,200,000

October

2012

  • 1,000 associates
  • Small Sortable

XUSE

5100 S. Indianapolis Road, Whitestown, Indiana, 46075

United States of America

624,000

October

2013

  • Most likely outsourced to 3PL Menlo Logistics

 

Greater Chicago Area, Illinois

United States of America

 

2015

  • New $75 Million project announced for Illinois to staff 1,000 associates

TUL1

2654 North US Highway 169, Coffeyville, Kansas, 67337

United States of America

915,000

April

1999

  • Scheduled to be closed in Feb 2015
  • Big Sortable
  • Expanded from 460,000 Sq. Ft.

MCI1

Lenexa Logistics Centre, Corner of W. 113th Street and Renner Boulevard, Lenexa, Kansas, 66219

United States of America

260,700

TBD

  • Planned facility to be a sortation center

SDF1

1050 South Columbia Avenue, Campbellsville, Kentucky, 42718

United States of America

770,000

May

1999

  • Big Sortable
  • Expanded from  570,000  Sq. Ft. in 1999

SDF2

4360 Robards Ln, Louisville, Kentucky,40218

United States of America

110,000

September

2005

  • Specialty Site for Clothing

CVG1

Bldg. F Park W Int’l,, 1155 Worldwide Blvd., Hebron, Kentucky, 41048

United States of America

484,000

June

2005

  • Specialty Site for Clothing
  • Responsible for fulfillment of shoes, purses for Amazon.com and Endless.com

CVG2

1600 Worldwide Blvd., Hebron, Kentucky, 41048

United States of America

543,000

December

2005

  • Specialty Site
  • Returns Center

CVG3

3680 Langley Dr., Hebron, Kentucky, 41048

United States of America

711,400

July

2007

  • Replenishment Center

CVG5

CVG7

Hebron Building 2, 2285 Litton Lane, Hebron, Kentucky, 41048-8435

United States of America

598,000

January

2014

  • Sortation Center

LEX1

1850 Mercer Drive, Lexington, Kentucky, 40511

United States of America

604,000

November

2000

  • Big Sortable
  • Returns Center

LEX2

172 Trade St., Lexington, Kentucky, 40511

United States of America

380,000

June

2006

  • Returns Center

SDF4

376 Zappos.com Blvd, Shepherdsville, Kentucky, 40165

United States of America

823,000

September

2012

  • Fashion Center

SDF6

271 Omega Pkwy, Shepherdsville, Kentucky, 40165

United States of America

118,000

April

2012

  • Fashion Center

SDF7

300 Omicron Court,  Shepherdsville, Kentucky, 40165

United States of America

281,000

September

2012

  • Fashion Center

SDF9

100 W. Thomas P. Echols Lane, Shepherdsville, Kentucky, 40165

United States of America

600,000

October,

2013

  • Returns Center

BWI1

2010 Broening Highway, Baltimore, Maryland, 21224

United States of America

1,017,550

Planned for  2014

  • Facility confirmed Oct 22, 2013
  • 1000 full time people 
  • Small Sortable - Books, electronics and consumer goods

BWI2

5001 Holabird Ave., Baltimore, Maryland, 21224

United States of America

345,000

Planned for  2015

  • 2nd Baltimore DC is confirmed to be a sortation facility to be connected by conveyor to the BWI1 facility.

BOS2

1000 Tech Center Drive, Stoughton, Massachusetts, 02072

United States of America

332,700

December

2014

  • Sortation center to service Boston area

RN01

1600 East Newlands Dr., Fernley, Nevada, 89408

United States of America

786,000

January

1999

  • Big Sortable / Returns Processing
  • Expanded from 322,560 Sq. Ft.
  • Facility scheduled to be closed sometime in the future

LAS2

3837 Bay Lake Trail, North Las Vegas, Nevada, 89030

United States of America

283,920

October

 2008

  • Small Sortable
  • Returns Center

RN02

8000 North Virginia Street, Reno, Nevada, 85906

United States of America

634,000

To be opened

Q1, 2015

  • This facility will replace the Fernley facility which will be closed at some time in the future.

BOS1

10 State Street, Nashua, New Hampshire, 03063

United States of America

63,750

July

2007

  • Small Sortable

EWR5

EWR7

301 Blair Road #100, Woodbridge (Avenel), New Jersey, 07001

United States of America

565,400

June

2013

  • This is one of two fulfillment centers that total 967,000 square feet that were acquired by KTR Capital Partners from C&S Wholesale and renovated to suit Amazon.  Building 1 (EWR5) is a Returns Center & Sortation Center run by 3PL Genco. EWR7 is a new Prime Pantry FC and is in the same building as EWR5.

EWR4

50 New Canton Way, Robbinsville, New Jersey, 08691

United States of America

1,200,000

 July

2014

  • Amazon's two state-of-the-art fulfillment centers in New Jersey involved an investment of $130 Million.
  • Robbinsville will ship books and DVDs.

EWR6

2277 Center Square Rd, Swedesboro, New Jersey, 08085

United States of America

202,900

 October

2014

  • Sortation Center

CLT1

7035 Northwinds Drive, Concord, North Carolina, 28027

United States of America

222,500

 Fall

2014

  • Sortation Center

PHL4

21 Roadway Drive, Carlisle, Pennsylvania, 17015

United States of America

558,700

September

2010

  • Non-Sortable

PHL5

500 McCarthy Dr., Fairview Business Park, Lewisberry, Pennsylvania, 17339

United States of America

750,000

August

2010

  • Non-Sortable

PHL6

675 Allen Rd. , Carlisle, Pennsylvania, 17015

United States of America

1,206,500

August

2010

  • Non-Sortable

PHL9

2 Ames Drive, Building #2, Carlisle, Pennsylvania, 17015

United States of America

700,000

Not Announced Yet

  • Non-Sortable
  • Not officially confirmed

AVP1

550 Oak Ridge Road, Hazleton, Pennsylvania, 18202

United States of America

750,000

July

 2008

  • Replenishment Center
  • Delayed Allocation Facility

ABE2

705 Boulder Drive, Breinigsville, Pennsylvania, 18031

United States of America

600,000

July

2010

  • Big Sortable

ABE3

650 Boulder Drive, Breinigsville, Pennsylvania, 18031

United States of America

997,400

June

 2011

 

ABE5

6455 Allentown Boulevard, Harrisburg, Pennsylvania, 17112

United States of America

200,000

 

 

XUSC

40 Logistics Drive, Carlisle, Pennsylvania, 17013

United States of America

421,200

2013

  • Most likely outsourced to 3PL Menlo Logistics

PIT1

2250 Roswell Drive, Pittsburgh, Pennsylvania, 15205

United States of America

200,000

2014

  • Sortation center planned for 2014 to service the PA fulfillment centers

CAE1

4400 12 Street Extension, West Columbia, South Carolina, 29172

United States of America

1,250,000

October

2011

  • Ships in excess of 50,000 packages per day

GSP1

402 John Dodd Road, Spartanburg, South Carolina, 29303-6312

United States of America

1,016,100

September

 2012

  • 1,800 associates

CHA1

7200 Discovery Drive, Chattanooga, Tennessee, 37416-1757

United States of America

1,000,000

September

2011

  • Big Sortable
  • 1,700 associates

CHA2

225 Infinity Dr NW, Charleston, Tennessee, 37310

United States of America

1,200,000

September

2011

  • Stores coffee makers, lawn tractors, barbecue grills, and water heaters along with bulk items

BNA1

14840 Central Pike, Lebanon, Tennessee, 37090

United States of America

449,000

September

2011

 

BNA2

500 Duke Dr, Lebanon, Tennessee, 37090

United States of America

1,000,000

October

 2012

  • Larger non-sortable items

BNA3

2020 Joe B Jackson Pkwy, Murfreesboro, Tennessee, 37127

United States of America

1,000,000

October

 2012

  • Larger non-sortable items

BNA4

50 Airways Blvd. , Nashville, Tennessee, 37217

United States of America

214,000

Planned for

2014

  • This will be a sortation center to service the fulfillment centers in Tennessee

DFW6

940 W. Bethel Road , Coppell, Texas, 75019-4424

United States of America

1,000,000

October

2013

  • Larger items such as televisions.

DFW7

700 Westport Parkway, Fort Worth, Texas, 76177-4513

United States of America

1,100,000

October

2013

  • Facility budgeted at $100 Million.
  • Ships smaller items like books, small electronics and DVDs.

DFW8

2700 Regent Blvd, Dallas, Texas, 75261

United States of America

428,500

March

2014

  • Sortation Center to service Dallas/Fort Worth market

XUSB

14900 Frye Road, Fort Worth, Texas, 76155

United States of America

495,000

 

  • Most likely outsourced to 3PL Menlo Logistics

HOU1

8120 Humble Westfield Rd, Humble, Texas, 77338

United States of America

240,000

June

2014

  • Sortation Center to service Houston market

SAT1

6000 Enterprise Avenue,  Schertz, TX 78154-1461

United States of America

1,260,000

October,

2013

  • Schertz is nearby San Antonio, TX.
  • Facility budgeted at $166 Million.

RIC1

5000 Commerce Way, Petersburg, Virginia, 23803-6917

United States of America

1,100,000

October

 2012

  • Ships larger packages that range from electronics and sports equipment to small kitchen appliances and toys
  • 500 associates

RIC2

1901 Meadowville Technology Parkway, Chester, Virginia, 23836-2841

United States of America

1,200,000

October,

 2012

  • Ships auto parts, consumer electronics,office supplies, books, etc.
  • 1500  associates

RIC3

Across the Street from 1901 Meadowville Technology Parkway, Chesterfield, Virginia, 23836

United States of America

404,200

Planned for 2014

  • Speculation that this will be a large non-sortable FC

BFI1

1800 140th Avenue E., Sumner, Washington, 98390

United States of America

492,000

June

2011

 

SEA6

SEA8

1227 124th Avenue Northeast, Bellevue, Washington, 98004

United States of America

313,300(1)

August

2007

  • SEA6: Amazon Dry fulfillment center
  • SEA8: Amazon Fresh fulfillment center with perishables and frozen foods

BFI3

2700 Center Drive, DuPont, Washington, 98327

United States of America

1,000,000

August,

2014

  • Ships larger items such as canoes and televisions. 
  • Facility budgeted at $100 Million.

BFI4

Kent, Washington

United States of America

1,000,000

TBD

  • Small sortable FC:  books, electronics and consumer goods

BFI5

20526 59th Place South, Kent, Washington, 98032

United States of America

318,200

July

2014

  • Sortation Center to service the greater Seattle / Portland market

MKE1

Kenosha Enterprise Park, 38th Street (near I-94), Kenosha, Wisconsin, 53144

United States of America

1,100,000

Planned for

Q1 2015

  • Facility will have up to 1100 people.
  • $170 Million investment

MKE2

Kenosha Enterprise Park, 2nd Building to be attached by sky-bridge to 1st Kenosha facility, (East of  I-94), Kenosha, Wisconsin, 53144

United States of America

500,000

Planned for November 2014

  • Sortation center will have up to 575 people.
  • $62 Million investment

YYZ1

6363 Millcreek Drive, Mississauga, Ontario, Canada, L5N 1L8

Canada

501,700

February

2011

  • Fulfillment operations in Canada were originally outsourced to a 3PL in June, 2002. 
  • Amazon Canada Fulfillment Services, Inc. was later launched  in March, 2011 in a former Loblaws/National Grocers building.

YYZ2

2750 Peddie Road, Milton, Ontario, Canada, L9T 6Y9

Canada

375,240

October

2013

  • Amazon newest fulfillment   center in Canada will have 100 associates.

YYZ3

7995 Winston Churchill Boulevard, Brampton, Ontario, L6Y 0B2

Canada

521,620

October

2013

  • Amazon leased this space in Q4 2013

YVR2

450 Derwent Place, Delta, British Columbia, Canada, V3M 5Y9

Canada

193,500

November,

2012

  • Amazon’s second fulfillment center in Canada is on Annacis Island (South of Vancouver)

Notes:

  • Definitions of fulfillment center types:
    • Big sortable fulfillment centers generally house larger items that can all fit into one box / shipment (e.g. books, DVDs, watches, etc.)
    • Small Sortable fulfillment centers generally house smaller items that can all fit in one box/shipment
    • Non-sortable fulfillment centers generally house items (usually because of size) that can not be sorted into a box with other items.
    • Replenishment centers  generally receive product from vendors and then move these products to and between other fulfillment centers.
    • Customer returns centers process all Amazon customer returns.
    • Specialty sites fulfill specialty items sold by Amazon such as jewelry and clothing.
    • Grocery sites service home delivery of Dry grocery and Perishables merchandise.
    • Sortation centers are generally used to sort packages out by zip code whereby the packages have originated from a fulfillment center elsewhere in the Amazon network.
  • Fulfillment centers that have been closed or converted include:
    • McDonough, Georgia. Originally opened as the company's 5th fulfillment center in October, 1999. This 800,000 sq. ft. fulfillment center employed 450 associates and was closed in 2001 after business slumped and cutbacks were necessary.
    • Seattle, Washington:  Restructuring plans in 2001 led to this 93,000 sq. ft. fulfillment center being converted to a seasonal facility.
    • Grand Forks, North Dakota: This 130,000 sq. ft. power tools fulfillment center was originally opened in 1999 when Amazon bought the catalog division of Acme Electric, a local hardware store.  Amazon closed the fulfillment center in March, 2005 eliminating 50 jobs, but the company converted the operation into a call center which in turn created 60 jobs.
    • Red Rock, Nevada: Originally opened in January, 1999. This 322,560 sq. ft. fulfillment center was closed in March, 2009 as part of the closure of 3 fulfillment centers when the company transferred volumes to other facilities to streamline operations.
    • Chambersburg, Pennsylvania: This 420,000 sq. ft. fulfillment center was closed in March, 2009 as part of the closure of 3 facilities when the company transferred volumes to other fulfillment centers to streamline operations.
    • Munster, Indiana: Originally opened in October, 2007, this 75,000 sq. ft. fulfillment center was closed in March, 2009 as part of the closure of 3 facilities.
    • Irving, Texas: Originally opened in 2005, this 493,290 sq. ft. facility was closed in April, 2011 after a tax fight with the state of Texas.  The Texas comptroller's office sent Amazon a demand for $269 million in uncollected sales taxes, plus penalties and interest from 2005 through 2009.  The state contended that Amazon was responsible for sales taxes not collected on on-line sales made in Texas because its fulfillment center was in Irving.  Amazon closed the facility and 119 jobs were lost as a result.
    • The Fernley, NV fulfillment center (786,000 sq. ft.) which was opened in January, 1999 is scheduled to be closed in early 2015.  This will be relocated to Reno, Nevada with a newer 634,000 sq. ft. facility.
    • The Coffeyville, KS fulfillment center (915,000 sq. ft.), which was opened in April 1999, is scheduled to be closed in Feb. 2015 as Amazon realigns its distribution network to be closer to larger metropolitan cities. The original strategy that pushed the company into the rural areas of America was based on avoiding the need to charge consumers with sales tax. Since this competitive advantage is coming to a close, the company is now moving its fulfillment centers closer to concentrated points of demand to reduce its outbound transportation expense.

Discussion on the Amazon North American fulfillment Network:

Amazon's fulfillment network strategy is interesting because it does not necessarily reflect an optimized distribution network in terms of serving the U.S. population from optimal geographical locations that are closest to the markets served.  Until 2013, fulfillment center locations in the U.S. have been determined based on state tax considerations.  Sales taxation laws vary from state to state within the country and since we are not experts on this topic, we thought it best to click here for more information on this topic. In short, Amazon sells most of its merchandise through fulfillment centers which are not technically classified as retail stores. As such, the company is technically within the letter of the law to not charge sales tax to consumers with the exception of five states.  This provides Amazon with a significant competitive advantage over conventional retailers that have retail stores since these companies must charge state taxes at the time of purchase (States lose an estimated $23 billion a year in uncollected sales taxes from web retailers).  Currently 16 states have introduced Internet sales tax legislation that is already on the books with more states expected to follow shortly.

In the years leading up to 2013, Amazon invested significant capital into facilities in Arizona, Tennessee, Pennsylvania, Kentucky, Indiana, Delaware, South Carolina and more recently Virginia - all states that have made tax collection deals with Amazon in exchange for agreements to guaranteed job creation targets over time.

Looking ahead, Amazon will stop fighting the sales tax war as it is inevitable that its current competitive advantage will ultimately go away.  Amazon already collects taxes from Texans and this will eventually apply as well to California, Nevada, New Jersey, New York, Indiana, Tennessee, and Virginia.  After all of the tax deals go into effect, Amazon will essentially be collecting sales taxes from the majority of American consumers.  Amazon's tax capitulation is directly related to a major shift in the company logistics strategy.  Instead of shipping to customers in highly populated urban centers from massive fulfillment centers constructed in faraway low cost states, the company will in future move to a same day shipping strategy.  The new Amazon distribution strategy calls for the fastest level of order turnaround time (i.e. same day) for all major cities within the United States.  The goal is to enable same-day delivery as an option for the majority of its U.S. customers.  Since the onset of the ecommerce era, this goal has been a dream for many Internet retailers, but the high cost of establishing the required fulfillment network infrastructure has been a critical barrier to entry.  Amazon is now investing heavily to make same day delivery a reality and we should soon expect to see major fulfillment centers being built such that the top 20 urban areas in America can be serviced on a same day basis.

Amazon has also announced a strategy to make a move into the Grocery industry with home delivery service to be established in major metropolitan markets.  AmazonFresh is already established in Seattle, Los Angeles  and San Francisco. Reports are circulating that this strategy could eventually roll out to up to 20 large metropolitan cities with the goal being to enable customers to order food and general merchandise products with same day delivery.

Lastly, it is important to note that Amazon is in the process of setting up a new U.S. network of smaller sortation centers that will enable the company to increase its control over the last mile delivery to the customer.  Eligible parcel shipments from nearby fulfillment centers will be sent to a regional sortation center where parcels will be sorted by zip code and then transferred to neighborhood post offices so that the United States Postal Service can perform the delivery for less cost than a parcel carrier such as UPS. This strategy enables Amazon to control the delivery process up to the last mile and it is also a key enabler to providing Sunday delivery in conjunction with USPS (this partnership was announced in November, 2013). By the end of 2014, Amazon is expected to have 15 sortation centers up and running in the United States whereby each facility will employ between 100-300 associates.  Amazon has already opened sortation centers in East Point, GA; Dallas, TX; Humble, TX; Phoenix, AZ; Avenel, NJ; Hebron, KY; San Bernardino, CA; and Kent, WA.  Plans are also underway to open new sortation centers in Nashville, TN; Baltimore, MD; Swedesboro, NJ; Stoughton, MA; Davenport, FL; Miami, FL; Newark, CA; Lenexa, KS; Pittsburgh, PA, Kenosha, WI and Charlotte, NC. 

The maps below represents Amazon’s fulfillment network as at the start of 2014 and excludes the sortation centers that are currently being introduced to the network.

Amazon North American Fulfillment Center Network

The Amazon Fulfillment Network Outside of North America

As of October, 2014, Amazon operates approximately 57 distribution center buildings outside of North America (excluding externally-operated UK delivery depots) exceeding 34.6  Million square feet of space.  Excluded from these figures is a network of 10 third party regional delivery hubs (consolidation centers of between 15,000 - 142,000 sq. ft.) in the UK to enable same day delivery service to key metropolitan cities. A detailed listing of existing and projected fulfillment centers appears in the table below.  Most countries use a value added taxation (VAT) system to collect retail sales tax up front at the time of purchase hence the taxation issue does not impact Amazon's fulfillment network outside of the United States. Please note that the square footage figures below exclude mezzanine areas in most cases unless otherwise stated.

Fulfillment

Center

Location

Country

Square

Feet

Year

Opened

Description of Operation

LTN1

Ridgmont, Marston Gate , Bedfordshire, Milton Keynes, United Kingdom, MK43 0ZA

United Kingdom

540,000

1998

  • Originally a 220,000 sq. ft. fulfillment center

CWL1

Ffordd Amazon, Crymlyn Burrows, Jersey Marine, Swansea, Wales, United Kingdom, SA1 8QX 

United Kingdom

800,000

April

2008

 

EDI4

Amazon Way, Dunfermline, Fife, Scotland, United Kingdom, KY11 8ST

United Kingdom

1,000,000

November

2011

  • Current facility replaced a smaller fulfillment center in Glenrothes which opened in November, 2005 and closed in November, 2011.

GLA1

2 Cloch Road, Faulds Park, Gourock, Inverclyde, Scotland, United Kingdom, PA19 1BQ

United Kingdom

300,000

July

2004

 

LBA1

Amazon.co.uk, Firstpoint Business Park, Balby Carr Bank, Doncaster, South Yorkshire, United Kingdom, DN4 5JS

United Kingdom

412,000

December

2010

EUK5

Phase Two, Kingston Park, Peterborough, Flaxley Road, Cambridgeshire, United Kingdom, PE2 9EN

United Kingdom

545,000

October, 2009

 

BHX1

Towers Business Park, Power Station Road, Rugeley, Staffordshire, United Kingdom, WS15 1LX

United Kingdom

700,000

August, 2011

  • Facility Reset/Expansion announced for 2014

LTN2

Boundary Way, Hemel Hempstead, Hertfordshire, United Kingdom, HP2 7LF

United Kingdom

450,000

November, 2012

 

 

A series of regional delivery hubs / consolidation centers have been opened by Amazon Logistics in Croydon, Bromley-by-Bow, Wednesbury (Birmingham),Abingdon (Oxford), Milton Keynes, Southall, Nottingham, Manchester, Leeds, Southampton with 3 additional facilities scheduled for Yorkshire, the Midlands and the North West.

United Kingdom

634,000.

2012 - 2014

  • Facilities range in size but we estimate approximately 634,000 sq. ft. in total
  • 10 facilities opened since  late 2012

FRA1

Am Schloss Eichhof 1, Bad Hersfeld - Schloss Eichhof, Hessen, Germany, 36251

Germany

325,000

August, 1999

FRA3

Amazonstrasse 1, Bad Hersfeld - Obere Kuehnbach, Hessen, Germany, 36251

Germany

1,129,800

September, 2009

 

LEJ1

Amazonstrasse 1, Leipzig, Saxony, Germany, 04347

Germany

755,000

September, 2006

 

DUS2

Amazonstrasse 1 / Alte Landstrasse, Rheinberg, North Rhine-Westphalia, Germany, D-47495

Germany

1,183,600

December

2011

 

EDE4

EDE5

Wahrbrink 25, Werne/Lippe, North Rhine-Westphalia, Germany, 59368

Germany

1,291,200

September, 2011

  1. Expanded from 600,000 sq. ft.

MUC3

Amazonstrasse 1 / Zeppelinstrasse 2, Graben, Bavaria, Germany, 86836

Germany

1,183,600

December, 2011

 

STR1

Amazonstrasse 1, Pforzheim, Baden-WŘrttemberg, Germany, 75177

Germany

1,000,000

September, 2012

 

CGN1

A 61 industrial park next to the Koblenz motorway, Koblenz, Germany

Germany

1,000,000

November,

 2012

 

BER3

Havellandstra▀e 5, 14656 , Brieselang, Germany

Germany

742,440

November,

2013

  • 1000 jobs 

ORY1

Pole 45, 1401 Rue Champ Rouge , 45770, Saran, Loiret, France

France

753,200

December, 2007

  1. Expanded from 495,000 sq. ft. in 2011
  2. Replaced Boigny-Sur Bionne which was opened August, 2000

MRS1

Building II, ZAC Les Portes de Provence, F-26200, Montelimar, France

France

494,600

August,

2010

 

LYS1

1 rue Amazon, Sevrey,  Sa˘ne-et-Loire, 71100, Burgundy, France

France

430,400

September, 2012

 

LIL1

Rue de la Plaine, 59553, Lauwin-Planque, Nord-Pas-de-Calais, France

France

968,400

September

2013

  1. 2,500 jobs TO BE created

MXP5

V. Dogana Po Pievetta, 2, Castel San Giovanni, Piacenza, Italy, 29015

Italy

645,600

September,

2013

  1. 1,000 jobs created
  2. Replaced a 30,000 sq meter facility (MXP1) that was also in Castel San Giovanni that opened in April 2011.

MAD4

La avenida de la AstronomÝa, Madrid Puerta de San Fernando, San Fernando de Henares, Spain

Spain

301,300

October,

 2012

 

PRG1

DobrovÝz, Středočeskř Kraj, Czech Republic

Czech Republic

269,000

October,

 2013

  1. Returns hub

PRG2

Near International Airport, DobrovÝz, Czech Republic

Czech Republic

1,022,200

July

2015

  1. 2,000 permanent jobs and 3,000 seasonal jobs to be created
  2. Project voted down in Dec 2013 thus this may be canceled.

WRO1

Near Nowa Wieś junction linking motorways A4 and A8, Bielany Wroclawskie Suburb, Wrocław, Poland

Poland

1,083,000

October

2014

  1. FC opened in Oct 2014
  2. 2,500 jobs created

POZ1

Near Sady by Expressway S11 and the A2 Motorway, Poznań, Poland

Poland

1,083,000

October

2014

  1. FC opened in Oct 2014
  2. 2,500 jobs created

WRO2

Wrocław, Poland

Poland

1,076,000

October

2014

  1. FC opened in Oct 2014
  2. 2,500 jobs to be created

PEK3

Yizhuang, Beijing, China

China

538,000

< 2004

 

PEK5

 

Tongzhou, Beijing, China

China

322,800

June 2008

 

SHA1

GLP Park Suzhou Industrial Park, Suzhou, Jiangsu, China

China

118,400

Nov.

2006

  1. Relocated from Shanghai in Nov. 2006

CAN1

Huangpu District, Guangzhou, Guangdong, China

China

118,400

June

2007

 

CTU1

ProLogis Industrial Park, Chengdu Hi-Tech Zone, Chengdu, Sichuan, China

China

193,700

November

2009

  1. Expanded from 12,000 sq meters in June 2011

SHE1

Shenyang, Liaoning, China

China

625,800

May

2010

  1. Sq Ft is estimated

XIY1

Xi'ian, Shaanxi, China

China

625,800

August

2010

  1. Sq Ft is estimated

WUH1

Wuhan, Hubei, China

China

300,000

September

2010

 

XMN1

XMN2

Xiamen, Fujian, China

China

170,000

September

2010

  • Delivery to cities in Fujian, including Xiamen, Fuzhou, Zhangzhou, Putian, Longyan, Sanming, Quanzhou, Nanping and Ningde.

SHA2

Kunshan, Jiangsu, China

China

1,291,200

October

2011

 

TSN2

GLP Park,  Wuqing, Tianjin, China

China

1,764,600

January

2012

  • 2-phase construction with Phase 1 complete at 90,000 square meters and Phase 2 completed in June 2012 at 74,000 square meters

NNG1

Beibu Gulf Technopark, Nanning, Guangxi, China

China

538,000

Q4  2012

 

HRB1

Habin, China

China

86,000

2012

  1. Sq Ft is estimated

CAN2

Guangdong Champion Valley Park, Guangzhou, Guangdong, China

China

1,829,200

May

2013

 

CAN3

Huangpu Development Zone , Guangzhou, Guangdong, China

China

86,000

2014

  1. Sq Ft is estimated

PVG1

Shanghai Pilot Free-Trade Zone, Shanghai , China

China

TBA

Est. Q4, 2014

  1. Sq Ft not available yet

NRT1

2-13-1 Shiohama, Ichikawa, Chiba, 272-0127, Japan ‎

Japan

670,350

November

 2005

  • Amazon Japan Logistics headquarters
  • A preceding 335,200 sq. ft. facility started in Nov. 2000 was located 1 KM away and closed in 2005

NRT2

2039-1, Kamikouya, Yachiyo, Chiba, Japan

Japan

367,400

October

2007

  1. Large high-ticket items

KIX1

Sakai-ku Chikkoyawata cho 138-7, Osaka, Japan

Japan

730,850

August

2009

 

NRT5

1-10-15 land port Kawagoe, Saitama Minamidai, Japan

Japan

418,860

July

2010

  • Fashion items such as bags and large items, shoes

KIX2

574-0073, 2-1-1 Midorigaoka Settsu warehouse, Daito, Osaka, Japan

Japan

271,250

November

2010

  • Large items

HND2

Sayama City, Saitama, Japan

Japan

250,000

Fall

 2011

  • Sq. Ft. is an estimate only - unpublished figure

HND3

Hiki-gun, Saitama Prefecture Kawashima Kawashima-cho, 2-1 ProLogis Park, Japan

Japan

250,000

Fall

 2011

  • Sq. Ft. is an estimate only - unpublished figure

HSG1

Saga Tosu Yayoigaoka 3-chome, 1-3, , Japan

Japan

244,000

May

2012

 

NGO2

10-chome, Gifu Prefecture Tajimi Asahigaoka, Japan

Japan

860,800

November

 2012

  • 5-story structure
  • Small Sortable books, CDs, etc.

FSZ1

Odawara Ogimachi 4-chome, 5-1,  Kanagawa, Japan

Japan

2,132,000

September

2013

  • A 5-storey build-to-suit e-commerce distribution centre
  • Amazon’s largest Japanese logistics facility 

BOM1

Bhiwandi, Mumbai, India

India

150,000

July

2012

BLR1

Bangalore, India

India

150,000

Feb

2014

 

MAA1

Chennai, India

India

40,000

July

2014

  • Sq. Ft. is an estimate only - unpublished figure.  Facility operational.

DEL1

Delhi, India

India

40,000

August

2014

  • Sq. Ft. is an estimate only - unpublished figure
  • Facility operational.

JAI1

Jaipur, India

India

40,000

August

2014

  • Sq. Ft. is an estimate only - unpublished figure
  • Facility operational.

AMD1

Ahmedabad, India

India

40,000

September

2014

  • Sq. Ft. is an estimate only - unpublished figure

DEL2

Tauru (outskirts of Gurgaon), India

India

40,000

September

2014

  • Sq. Ft. is an estimate only - unpublished figure
Amazon Europe Fulfillment Center Network
Amazon Japan Fulfillment Center Network
Amazon China Fulfillment Center Network
Amazon India Fulfillment Center Network

Legend / Notes:

  • Facilities that have been canceled or closed include:
    • Iwanuma City , Miyagi, Japan: Originally planned for April, 2011, the plans for this fulfillment center were cancelled after the tragic earthquake and subsequent tsunami hit the region on March 11, 2011.
    • Amazon NG01 (Tokoname City, Aichi, Japan) and HND1 (Kawagoe City, Saitama, Japan) were both opened in 2011 and are reportedly closed as of 2013.
  • New facilities on the horizon:
    • One large fulfillment center is planned for The Czech Republic and three for Poland in 2014 - 2015.
    • We anticipate one new large fulfillment center is planned for Northern England in the Manchester / Liverpool area.
    • Australia:  Unconfirmed rumors are circulating that Amazon will be entering the Australian market which has an estimated on-line retail sales of $12.3 Billion/year.  Australian customers are currently serviced from Germany so this move will reduce shipping costs and improve their competitive position for this market.
    • Amazon India has opened 5 fulfillment centers and 2 more facilities will come on line in Q4 2014.

Conclusions

Marc Wulfraat is the President of MWPVL International Inc.  He can be reached by clicking hereMWPVL International provides supply chain / logistics network strategy consulting services. Our services include: distribution network strategy; distribution center design; material handling and automation design;  supply chain technology consulting; product sourcing; 3PL Outsourcing; and purchasing; transportation consulting; and operational assessments.

Legal disclosure: MWPVL International Inc. does not represent or have a business relationship with Amazon. This is a research paper for supply chain educational purposes.  The information assembled in this research paper is intended to provide the audience with intelligence on the subject of world class strategies for distribution networks.  In preparing this material, MWPVL International Inc. has not disclosed any private or confidential company information.  MWPVL International Inc. has made every effort to ensure that the information contained within this white paper is as accurate and as up to date as possible. However, it is important to note that distribution networks change over time and for this reason there is a possibility that information contained within this paper may be out of date or inaccurate.  If you wish to submit any information to improve the quality of this white paper, please be sure to send us some feedback.

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