How Does Amazon FBA Program Work?

Under FBA (Fulfillment by Amazon) program, Amazon will pick, pack, store, ship, and handle customer services for sellers.

In Amazon warehouses, products will be received. Warehouse workers will get customer orders ready, pack products up, and load them onto trucks for the next delivery. Amazon also conducts product inspections to ensure products meet quality requirements before they are delivered to customers.

If you are an Amazon seller, the locations of Amazon warehouses can really play to your strength. You can browse and search for the closest one to send your inventory to, so your supply chain will be made more effective.

How Does Amazon Choose the Locations of Their Warehouses?

Generally, Amazon places warehouses near a country’s population centers. For one thing, the next-day or even same-day delivery can be made possible. For another, big cities usually mean huge e-commerce shopping needs and a loyal customer base.

Besides, Amazon will also take other factors into consideration when deciding on new warehouse locations: transportation infrastructure, warehouse size, warehouse layout, and construction costs. The majority of Amazon warehouses are located in North America and Europe. Increasing the density of warehouses can relieve the burden on the fulfillment network, and thus better serve customers.