When most people think about Amazon, they picture an online marketplace where customers can find almost any product with a few clicks. What they don’t usually think about are the massive warehouses, advanced robotics, and logistics networks working tirelessly behind the scenes to make that promise possible.

For sellers using Fulfillment by Amazon (FBA), understanding what an Amazon fulfillment center is and how it works is absolutely critical. These centers are the backbone of your FBA business. They handle your storage, order processing, packaging, shipping, and even customer service.

In this article, we’ll break down everything you need to know about Amazon fulfillment centers:

• What they are and why they exist.

• How the inbound and outbound process works.

• The technology and logistics inside the warehouses.

• Fees and costs sellers should prepare for.

• Best practices for managing inventory in fulfillment centers.

• The pros and cons of relying on Amazon’s logistics system.

By the end, you’ll have a complete understanding of how fulfillment centers power the FBA program — and how you can optimize your business to take full advantage of them.

1. What Is an Amazon Fulfillment Center?

An Amazon fulfillment center is a specialized warehouse where Amazon stores, picks, packs, and ships products on behalf of sellers using FBA. Think of it as the physical engine behind Amazon Prime’s famous two-day (and now often one-day or same-day) delivery guarantee.

When you enroll in FBA, you send your inventory to one (or more) of these centers. Amazon then:

1. Stores your products until a customer orders them.

2. Uses robotics and employees to pick the item.

3. Packages it in Amazon-branded boxes.

4. Ships it directly to the customer using Amazon’s logistics network.

5. Handles returns, refunds, and customer service.

👉 In short: An Amazon fulfillment center is where your product lives until it reaches the customer’s doorstep.

2. How Many Fulfillment Centers Does Amazon Have?

As of 2025, Amazon operates over 400 fulfillment centers worldwide (with more than 200 in the U.S. alone). They range from massive million-square-foot warehouses in major cities to smaller local distribution centers designed to speed up last-mile delivery.

Amazon continues to invest heavily in automation, drones, and robotics to make these facilities more efficient. For sellers, this means more reliable delivery speeds, wider coverage, and reduced logistics headaches.

3. Inside an Amazon Fulfillment Center: How It Works

So, what actually happens to your product once it arrives at a fulfillment center? Let’s go step by step.

Step 1: Inbound (Getting Inventory Into the Warehouse)

• You create a shipment plan in Seller Central.

• You ship your products to the assigned fulfillment center.

• Amazon receives, scans, and sorts your products into bins or shelves.

• Inventory is tracked with barcodes (FNSKUs) to link products to your account.

Step 2: Storage

• Products are stored in Amazon’s massive shelving systems.

• Amazon uses a “chaotic storage” method — meaning your products aren’t stored in one neat spot, but spread throughout the warehouse for efficiency.

• Robots and advanced software know exactly where each unit is located.

Step 3: Order Processing (Pick & Pack)

• A customer places an order.

• Robots and associates locate the item, scan it, and bring it to the packing station.

• The item is packed into an Amazon-branded box with protective materials.

Step 4: Shipping & Delivery

• Orders are shipped using Amazon’s delivery network, including Amazon Logistics, USPS, UPS, FedEx, and even drones in select cities.

• Customers receive real-time tracking updates.

• Prime members often receive items within 1–2 days.

Step 5: Returns & Customer Service

• If a customer returns an item, it goes back to the fulfillment center.

• Amazon inspects the product: if resellable, it’s restocked; if not, it may be marked as unsellable.

• Amazon handles the refund and communication.

👉 This end-to-end process is what makes FBA so powerful for sellers. You focus on sourcing and marketing — Amazon takes care of the rest.

4. Amazon Fulfillment Center Technology

Amazon’s fulfillment centers aren’t ordinary warehouses. They’re powered by:

• Robotics (Amazon Robotics / Kiva Systems): Robots transport shelves of products to human workers for picking.

• AI & Machine Learning: Algorithms predict demand, optimize storage, and route shipments.

• Automated Sorting Systems: Machines sort packages by size, weight, and delivery route.

• Drone Technology: In testing, drones are handling small-package deliveries in certain areas.

• Computer Vision & Scanners: Every product is tracked in real-time to reduce errors.

This combination of human efficiency + automation makes it possible for Amazon to process millions of orders per day.

5. Costs of Using Amazon Fulfillment Centers (FBA Fees)

Using fulfillment centers isn’t free. Sellers pay FBA fees, which cover storage, picking, packing, and shipping.

Key Fees:

1. Fulfillment Fees (per unit): Based on size and weight. Example: $3.22 for a small standard-size item.

2. Storage Fees (per cubic foot): Charged monthly for inventory stored in warehouses. Higher in Q4 (holiday season).

3. Long-Term Storage Fees: Charged for products stored over 365 days.

4. Returns Processing Fees: For categories where free returns apply (like apparel).

👉 Pro Tip: Always calculate fees using Amazon’s FBA Revenue Calculator to avoid profit surprises.

6. Benefits of Amazon Fulfillment Centers for Sellers

✅ Faster Delivery = More Sales

Amazon’s Prime badge gives you an edge — shoppers trust fast shipping.

✅ Customer Service Handled

You don’t have to deal with refunds or late shipments.

✅ Scalability

Whether you sell 100 or 100,000 units, Amazon’s network can handle it.

✅ Global Reach

With international fulfillment centers, you can scale to markets like Europe, Japan, and Canada.

✅ Buy Box Advantage

FBA products often get priority in the Buy Box, increasing visibility.

7. Challenges & Risks of Fulfillment Centers

While powerful, fulfillment centers aren’t perfect. Sellers face challenges like:

• High Fees: FBA costs can eat into profits if margins are thin.

• Inventory Misplacement: Rare, but products can get lost or damaged.

• Storage Limits: Amazon sometimes restricts how much inventory you can send.

• Returns Abuse: Amazon’s generous return policy can hurt sellers.

• Less Control: You can’t customize packaging beyond small inserts.

👉 This is why some sellers combine FBA with FBM (Fulfilled by Merchant) for flexibility.

8. Best Practices for Managing Inventory in Fulfillment Centers

To succeed with FBA, you need to master inventory management.

🔹 Forecast Demand Accurately

Use tools like Amazon Inventory Performance Index (IPI) to track sell-through rates.

🔹 Avoid Long-Term Storage Fees

Rotate stock and run promotions to clear old inventory.

🔹 Label Correctly

Always use Amazon barcodes (FNSKU) to avoid mix-ups.

🔹 Send Inventory in Batches

Stagger shipments to avoid overstocking or going out of stock.

🔹 Track Returns Closely

Monitor for fraudulent returns and request reimbursements if Amazon mishandles items.

9. Fulfillment Centers vs. Warehouses: What’s the Difference?

Many new sellers confuse fulfillment centers with traditional warehouses. Here’s the difference:

10. The Future of Amazon Fulfillment Centers (2025 and Beyond)

Amazon isn’t slowing down. Expect to see:

• More Localized Micro-Fulfillment Centers → Faster same-day delivery.

• AI-Powered Inventory Prediction → Smarter stock placement.

• Sustainable Packaging & Energy → Green warehouses powered by renewable energy.

• Drone & Autonomous Delivery → Shorter delivery times, even within hours.

For FBA sellers, this means even greater reach, speed, and efficiency — but also increased competition.

Conclusion

Amazon fulfillment centers are the heartbeat of the FBA program. They take care of the most complex and expensive parts of e-commerce warehousing, shipping, and customer service so sellers can focus on scaling their business.

But with these benefits come responsibilities: managing inventory wisely, calculating FBA fees accurately, and ensuring compliance with Amazon’s strict requirements.