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Amazon.com Distribution Network
Amazon.com Distribution Network |
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Introduction
This article documents the global Amazon.com distribution network as at January, 2013.
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.
From a distribution 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 distribution centers in: Fernley, NV.; Coffeyville, Kan.; 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 distribution network expansion front until 2005. Since 2005, Amazon’s network has been steadily growing both in North America and outside of the continent as well.
Today, Amazon is perhaps the most feared competitor of Walmart and Best Buy amongst other firms. With 2012 sales revenues projected at $62 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 global distribution network that continues to grow at a frenzied rate. In 2011, the company added 10 fulfillment centers totaling 8.68 Million square feet of space in North America. In 2012, Amazon opened 9 new massive distribution centers in North America (including Canada) totaling 8.45 Million square feet. Outside of North America, Amazon added 12 new fulfillment centers exceeding 6.5 Million square feet in 2011; In 2012, Amazon opened 10 fulfillment centers in the U.K., France, Germany, Spain, China, Japan, and India.
Plans for 2013 are unfolding and to date we are aware of 9 new distribution centers exceeding 7.3 Million square feet in the U.S. We will keep you posted as new facilities are announced.
Amazon.com’s Distribution Network in North America
As at January, 2013, Amazon.com operates approximately 42 fulfillment centers in North America exceeding 32.4 Million square feet of space. A detailed listing of these facilities appears in the table below. All figures provided are estimates based on research of the best information available. We have purposely excluded fulfillment centers from other Amazon subsidiaries (e.g. Zappos, Diapers.com, etc.) in the table below.
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Fulfillment
Center
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Location
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Country
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Square
Feet
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Year
Opened
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Description of Operation
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PHX3
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6835 West Buckeye Road, Phoenix, Arizona, 85043
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1,000,000
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September
2007
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- Big Sortable
- Facility was expanded by 400,000 Sq. Ft. in Dec 2011.
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PHX5
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16920 W. Commerce Dr. , Goodyear, Arizona, 85338
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1,400,000
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June
2008
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- Facility expanded in 2011 by 30%.
- 1.2 M sq ft shell + 230K sq ft mezzanine
- Non-sortable
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PHX6
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4750 West Mohave Street, Phoenix, Arizona, 85043
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1,200,000
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October
2010
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PHX7
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800 N. 75th Ave, Phoenix, Arizona, 85043
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1,200,000
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September
2011
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ONT2
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Corner of Tippecanoe and Central Avenue, San Bernardino, California, 92408-0123
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950,000
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October
2012
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- First Shipment Oct. 16, 2012 with 700 associates planned at start-up
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PHL1
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1 Centerpoint Blvd, New Castle, Delaware, 19720
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202,000
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November
1997
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- Big Sortable
- Amazon’s 2nd DC in its network
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PHL7
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Classic Drive near Levels Road, Middletown, Delaware, 19709
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1,200,000
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October
2012
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- Shipped 1st package October 10
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IND1
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4255 Anson Blvd, Whitestown, Indiana, 46075
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1,000,000
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August
2008
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- Big Sortable
- Expanded by 400,000 Sq. Ft. in February, 2011
- 1200 associates
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IND2
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715 Airtech Parkway, Plainfield, Indiana, 46168
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942,500
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October
2008
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- Non-Sortable
- 300 associates
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IND4
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710 S. Girls School Road, Indianapolis, Indiana, 46231
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902,850
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June
2011
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IND5
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800 South Perry Road, Plainfield, Indiana, 46168
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925,800
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August
2011
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IND6
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Highway 62, Jeffersonville, Indiana
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1,000,000
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October
2012
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- Went live on Oct 3, 2012
- Facility capable of shipping 500 orders per minute.
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TUL1
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2654 North US Highway 169, Coffeyville, Kansas, 67337
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750,000
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April
1999
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- Big Sortable
- Expanded from 460,000 Sq. Ft.
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SDF1
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1050 South Columbia Avenue, Campbellsville, Kentucky, 42718
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770,000
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May
1999
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- Big Sortable
- Expanded from 570,000 Sq. Ft. in 1999
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SDF2
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4360 Robards Ln, Louisville, Kentucky,40218
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110,000
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September
2005
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CVG1
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1155 Worldwide Blvd., Hebron, Kentucky, 41048
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427,200
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June
2005
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- Specialty Site
- Responsible for fulfillment of shoes, purses for Amazon.com and Endless.com
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CVG2
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1600 Worldwide Blvd., Hebron, Kentucky, 41048
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543,000
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December
2005
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CVG3
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3680 Langley Dr., Hebron, Kentucky, 41048
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711,400
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July
2007
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LEX1
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1850 Mercer Rd, Lexington, Kentucky, 40511
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604,000
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November
2000
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- Big Sortable
- Returns Center
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LEX2
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172 Trade St., Lexington, Kentucky, 40511
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380,000
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June
2006
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RN01
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1600 East Newlands Dr., Fernley, Nevada, 89408
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786,000
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January
1999
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- Big Sortable
- Expanded from 322,560 Sq. Ft.
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LAS2
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3837 Bay Lake Trail, North Las Vegas, Nevada, 89030
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283,920
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October
2008
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BOS1
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10 State Street, Nashua, New Hampshire, 03063
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63,750
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NA
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PHL4
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21 Roadway Drive, Carlisle, Pennsylvania, 17015
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558,700
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September
2010
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PHL5
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500 McCarthy Dr, Lewisberry, Pennsylvania, 17339
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750,000
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August
2010
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PHL6
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675 Allen Rd. , Carlisle, Pennsylvania, 17015
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1,206,500
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August
2010
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AVP1
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550 Oak Ridge Road, Hazleton, Pennsylvania, 18202
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630,000
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July
2008
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ABE2
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705 Boulder Drive, Breinigsville, Pennsylvania, 18031
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600,000
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July
2010
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ABE3
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650 Boulder Drive, Breinigsville, Pennsylvania, 18031
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997,400
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June
2011
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CAE1
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4400 12 Street Extension, Cayce, South Carolina, 29172
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1,000,000
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October
2011
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- Ships in excess of 50,000 packages per day
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CAE2
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John Dodd Road near I-26, Spartanburg, South Carolina
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1,000,000
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October
2012
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CHA1
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7200 Discovery Drive, Chattanooga, Tennessee, 37416
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1,000,000
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September
2011
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CHA2
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225 Infinity Dr NW, Charleston, Tennessee, 37310
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1,200,000
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September
2011
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- Stores coffee makers, lawn tractors, barbecue grills, and water heaters along with bulk items
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BNA1
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14840 Central Pike, Lebanon, Tennessee, 37090
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449,000
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September
2011
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BNA2
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Near Interstate 840 between Central Pike and Stewarts Ferry Pike, Lebanon, TN
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1,000,000
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October
2012
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BNA3
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B. Jackson Parkway and Manchester Pike, Murfreesboro, Tennessee, 37127
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1,000,000
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October
2012
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RIC1
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Dinwiddie Commerce Park at Interstate 85, Dinwiddie County, Virginia
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1,000,000
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October
2012
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- Ships larger packages that range from electronics and sports equipment to small kitchen appliances and toys
- Started up in October with 250 associates.
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RIC2
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Meadowville Technology Park, Chesterfield County, Virginia, 23836
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1,100,000
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October,
2012
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- First Shipment Oct. 3, 2012 with 750 associates working at start-up
- Ships auto parts, consumer electronics,office supplies, books, etc.
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BFI1
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1800 140th Avenue E., Sumner, Washington, 98390
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492,000
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June
2011
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SEA6
SEA8
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1227 124th Avenue Northeast, Bellevue, Washington, 98005
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313,300(1)
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August
2007
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- SEA6: Small Sortable
- SEA8: Amazon Fresh Grocery distribution center with ambient, perishables and frozen foods
- (1) May be shared space
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Near I-5, Patterson City, California
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1,000,000
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Planned for June,
2013
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Prologis Park Tracy Phase 2, Near Grant Line Road, off Paradise Ave and Chrisman Road, Tracy, California, 95304
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1,000,000
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Planned for Nov,
2013
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- To be confirmed - Amazon to build a new distribution center in Tracy with automation / robotics (Most likely Kiva) estimated to add 1,000 jobs
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Robbinsville, New Jersey
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1,000,000
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Planned for 2014
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- Amazon plans to construct two state-of-the-art distribution centers in New Jersey with an investment of $130 Million.
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New Jersey
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Planned for 2013/14
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900 W. Bethel Road , Coppell, Texas, 75019
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1,000,000
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Planned for 2013
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- Amazon plans to construct distribution center(s) in Texas with an investment of $200 Million. A facility of 1.0M sq ft in Coppell is expected to be opened in 2013 for handling larger items such as televisions.
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Corner of Enterprise Avenue and Verde Parkway, Schertz, Texas
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1,200,000
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Planned for Fall, 2013
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- Schertz is nearby San Antonio, TX. The facility is expected to cost $166 Million.
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Westport Parkway, Haslet, Texas, 76052
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1,100,000
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Planned for August, 2013
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- Schertz is nearby San Antonio, TX. The facility is expected to cost $100 Million.
- Facility will ship smaller items like books, small electronics and DVDs.
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North of Center Drive and West of Intel’s DuPont campus, DuPont, Washington
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1,000,000
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Planned for Fall, 2013
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- Plan is to ship larger items such as canoes and televisions. Estimated investment is $100 Million.
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Connecticut
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TBD
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Planned for Fall, 2013-14
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- Plan is underway to open a facility with 300 employees. Estimated investment is $50 Million.
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YYZ1
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6363 Millcreek Drive, Mississauga, Ontario, Canada, L5N 1L8
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501,700
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February
2011
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- Distribution 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.
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450 Derwent Place, Delta, British Columbia, Canada, V3M 5Y9
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193,500
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Fall,
2012
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- Amazon’s second distribution center in Canada is on Annacis Island (South of Vancouver)
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Notes:
- Definitions of facility types:
- Big sortable fulfillment centers generally house 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 fulfillment centers.
- Customer returns centers process all Amazon.com customer returns.
- Specialty sites fulfill specialty items sold on Amazon.com such as jewelry and clothing.
- Facilities that have been closed or converted include:
- McDonough, Georgia. Originally opened as the company’s 5th distribution 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. distribution center being converted to a seasonal facility.
- Grand Forks, North Dakota: This 130,000 sq. ft. power tools distribution center was originally opened in 1999 when Amazon bought the catalog division of Acme Electric, a local hardware store. Amazon closed the distribution 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. distribution center was closed in March, 2009 as part of the closure of 3 distribution centers as the company transferred volumes to other facilities to streamline operations.
- Chambersburg, Pennsylvania: This 875,300 sq. ft. distribution center was also closed in March, 2009 as part of the closure of 3 facilities as the company transferred volumes to other distribution centers to streamline operations.
- Munster, Indiana: Originally opened in October, 2007, this 75,000 sq. ft. distribution center was also 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.com was responsible for sales taxes not collected on on-line sales made in Texas because its distribution center was in Irving. Amazon closed the facility and 119 jobs were lost as a result.
Discussion on the Amazon North American Distribution Network:
Amazon.com’s distribution network strategy is interesting because it does not necessarily reflect an optimized distribution network in terms of serving the U.S. population from the optimal geographical location (e.g. note the conspicuous absence of existing facilities in the highly populated states of California, Texas and New York in the first map below). Until recently, fulfillment center location decisions in the U.S. have been made based on proximity to customers in concentrated areas and state tax implications. 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.com sells most of its merchandise through distribution centers which are not technically classified as retail stores. As such, the company is 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 with retail stores that must charge state taxes at the time of purchase. Currently 8 states have introduced Internet sales tax legislation already on the books (Arkansas, Colorado, Connecticut, Illinois, New York, North Carolina, Rhode Island and South Dakota.), with another 9 considering the same (Arizona, California, Hawaii, Louisiana, Minnesota, Mississippi, Nevada, New Mexico and Vermont.
To illustrate Amazon's distribution strategy within North America up until 2013, one can clearly see the significant infrastructural investment that the company has made in Arizona, Tennessee, Pennsylvania, Kentucky, Indiana, Delaware, South Carolina and more recently Virginia - all states that have made deals with Amazon in exchange for agreements to guaranteed job creation targets over time.
In 2013 and going forward, Amazon will stop fighting the sales tax war. Amazon already collects taxes from Texans and this will eventually apply as well to California, Nevada, New Jersey, Indiana, Tennessee, and Virginia. After all of the tax deals go into effect, the company will essentially be collecting sales taxes from the majority of American customers. 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 distribution centers constructed in faraway low cost states, the company will in future move to a same day shipping strategy. The new Amazon strategy calls for the highest levels of order turnaround time for all major cities within the United States. The goal is to enable the capability of providing the option for same-day delivery as an option for a majority of its customers. Since the first days of the e-commerce era, this goal has been a dream for many Internet retailers but the high cost of establishing the distribution network infrastructure has been the 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 arriving in Los Angeles, New Jersey and Dallas. Looking at the maps below, one can begin to see that many cities such as Denver, Minneapolis, Miami and others have high urban populations with no Amazon fulfillment center. From a logistics industry perspective, Amazon is the story to watch in 2013. We will keep you posted as new announcements are made in the months ahead.
The maps below represent Amazon’s network as at January 1, 2013.
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The Amazon.com Distribution Network Outside of North America
As at January, 2013, Amazon.com operates approximately 44 fulfillment centers outside of North America exceeding 21 Million square feet of space. A detailed listing of these facilities appears in the table below. All figures provided are estimates based on our research of the best information available. Most countries use a value added taxation (VAT) system which collects taxes up front at the time of purchase hence the taxation issue does not impact Amazon’s distribution network outside of the United States.
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Fulfillment
Center
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Location
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Country
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Square
Feet
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Year
Opened
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Description of Operation
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LTN1
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Ridgmont, Marston Gate , Bedfordshire, Milton Keynes, United Kingdom, MK43 0ZA
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499,800
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1998
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- Operation was originally based in a 220,000 sq. ft. distribution center
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CWL1
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Ffordd Amazon, Crymlyn Burrows, Jersey Marine, Swansea, Wales, United Kingdom, SA1 8QX
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800,000
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April
2008
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EDI4
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Amazon Way, Dunfermline, Fife, Scotland, United Kingdom, KY11 8ST
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1,000,000
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November
2011
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- Current facility replaced a smaller fulfillment center in Glenrothes which opened in November, 2005 and closed in November, 2011.
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GLA1
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2 Cloch Road, Faulds Park, Gourock, Inverclyde, Scotland, United Kingdom, PA19 1BQ
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300,000
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July, 2004
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LBA1
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Amazon.co.uk, Firstpoint Business Park, Balby Carr Bank, Doncaster, South Yorkshire, United Kingdom, DN4 5JS
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412,000
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December
2010
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EUK5
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Phase Two, Kingston Park, Peterborough, Flaxley Road, Cambridgeshire, United Kingdom, PE2 9EN
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500,000
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October, 2009
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BHX1
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Towers Business Park, Power Station Road, Rugeley, Staffordshire, United Kingdom, WS15 1LX,
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700,000
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August, 2011
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LTN2
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Boundary Way, Hemel Hempstead, Hertfordshire, United Kingdom, HP2 7LF
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450,000
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November, 2012
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FRA1
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Am Schloss Eichhof 1, Bad Hersfeld - Schloss Eichhof, Hessen, Germany, 36251
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325,000
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August, 1999
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FRA3
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Amazonstrasse 1, Bad Hersfeld - Obere Kuehnbach, Hessen, Germany, 36251
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950,000
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August, 1999
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LEJ1
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Amazonstrasse 1, Leipzig, Saxony, Germany, 04347
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755,000
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September, 2006
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DUS2
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Amazonstrasse 1 / Alte Landstrasse, Rheinberg, North Rhine-Westphalia, Germany, D-47495
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1,183,600
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December
2011
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EDE4
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Wahrbrink 25, Werne/Lippe, North Rhine-Westphalia, Germany, 59368
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600,000
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September, 2011
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MUC3
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Amazonstrasse 1 / Zeppelinstrasse 2, Graben, Bavaria, Germany, 86836
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1,183,600
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December, 2011
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STR1
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Amazonstrasse 1, Pforzheim, Baden-Württemberg, Germany, 75177
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1,000,000
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September, 2012
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CGN1
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A 61 industrial park next to the Koblenz motorway, Koblenz, Germany
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1,000,000
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November,
2012
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ORY1
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Pole 45, 1401 Rue Champ Rouge , 45770, Saran, Loiret, France
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753,200
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December, 2007
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- Expanded from 495,000 sq. ft. in 2011
- Replaced Boigny-Sur Bionne which was opened August, 2000
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MRS1
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Building II, ZAC Les Portes de Provence, F-26200, Montelimar, France
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360,000
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August,
2010
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LYS1
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1 rue Amazon, Sevrey, Saône-et-Loire, 71100, Burgundy, France
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430,400
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September, 2012
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Lauwin-Planque, Nord-Pas-de-Calais, France
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968,400
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Planned for Second Half of 2013
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MXP1
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V. Dogana Po Pievetta, 2, Castel San Giovanni, Piacenza, Italy, 29015
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269,000
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September,
2011
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MAD4
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La avenida de la Astronomía, Madrid Puerta de San Fernando, San Fernando de Henares, Spain
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301,300
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October,
2012
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PEK3
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Yizhuang, Beijing, China
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400,000
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April
2004
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PEK5
PEK8
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Tongzhou, Beijing, China
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180,000
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2010
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CTU1
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ProLogis Industrial Park, Chengdu Hi-Tech Zone, Chengdu, Sichuan, China
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193,700
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November
2009
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CAN1
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Guangzhou, Guangdong, China
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120,000
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May
2007
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HRB1
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HaErbin, China
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SHA2
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Kunshan, Jiangsu, China
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1,291,200
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October
2011
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SHA1
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GLP Park Suzhou Industrial Park, Suzhou, Jiangsu, China
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500,000
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November
2006
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SHE1
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Shenyang, Liaoning, China
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2010
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WUH1
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Wuhan, Hubei, China
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300,000
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September
2010
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XMN1
XMN2
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Xiamen, Fujian, China
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17,000
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September
2010
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XIY1
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Xi'ian, Shaanxi, China
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August
2010
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NNG1
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Beibu Gulf Technopark, Nanning, Guangxi, China
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538,000
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Planned for 2012
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TSN2
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Tianjin, China
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January
2012
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NRT1
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Ichikawa, Chiba, Japan
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670,350
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November
2005
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KIX1
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Sakai, Osaka, Japan
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730,850
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August
2009
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NRT2
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Yachiyo, Chiba, Japan
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367,400
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October
2007
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KIX2
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Daito, Osaka, Japan
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271,250
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November
2010
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NRT5
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Kawagoe City, Saitama, Japan
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418,860
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July
2010
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NGO1
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Prologis Park, Tokoname City, Aichi, Japan
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April
2011
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HND1
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Kawagoe City, Yoshinodai, Saitama, Japan
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Fall
2011
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HND2
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Sayama City, Saitama, Japan
|
|
|
Fall
2011
|
|
|
HND3
|
Kawajima, Hiki-gun District, Saitama, Japan
|
|
|
Fall
2011
|
|
|
HSG1
|
Tosu City, Saga, Japan
|
|
244,000
|
July
2012
|
|
|
|
Tajimi, Gifu, Japan
|
|
860,800
|
Planned for December
2012
|
|
|
BOM1
|
Mumbai, India
|
|
|
Planned for 2012
|
|
|
|
|
|
|
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MWPVL International Inc. is a full-service global Supply Chain, Logistics and Distribution Consulting firm. Our consulting services include Supply Chain Network Strategy, Product Sourcing Strategy, 3PL Outsourcing Strategy, Purchasing and Inventory Management, Distribution Center Design, Material Handling Systems, Supply Chain Technology Advisory Services (WMS, TMS, LMS, YMS, OMS, DMS, Purchasing, Forecasting, Slotting), Lean Distribution, Transportation Management, Distribution Operations Assessments, Warehouse Operations Consulting and much more.
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