How big are the Amazon Coms warehouses

Amazon warehouse: logistics centers & locations as well as alternatives

Logistics is one of the most important success factors for online retailers. This is proven above all by online giants such as Amazon or Zalando, who invest millions annually in fulfillment and have built up a strong logistics network in Europe.

Maximilian Gampl

Last Updated on 11 December 2020

But why are these companies so focused on shipping orders to customers? Quite simply: Online shoppers are placing increasing importance on fast and free delivery. In a survey, 60% of consumers stated that they make their purchase decision based on the shipping options offered.

Amazon has been a pioneer in e-commerce shipping since the beginning and has made a significant contribution to the rapid development of customer shipping requirements. The e-commerce giant achieved this through a sophisticated network of logistics centers with a high degree of automation. This means that delivery times can be shortened and, due to the proximity to the end customer, shipping costs can be minimized.

Fulfillment by Amazon

Fulfillment by Amazon (short FBA) is a service from Amazon that enables online retailers to outsource complete fulfillment and process it via the logistics network. The word “fulfillment” is particularly common in the e-commerce industry and stands for the processing of customer orders.

The fulfillment process includes all steps for the successful delivery of an order to the customer and begins as soon as a customer has placed an order in the online shop or on the online marketplace:

  1. The ordered goods must be from the corresponding Taken from stock become.
  2. The products are then Packaged ready for dispatch.
  3. Shipping to the end customer via a shipping service provider or partnerships with sub-companies.
  4. In some cases, products are returned to the fulfillment center. In this case, returns management is also taken over.

Amazon logistics centers

Amazon operates more than 175 logistics centers all over the world and that on an area of ​​14 million square meters. Millions of orders are packed and sent to consumers from these fulfillment centers every year.

Alone in In Germany, the online giant operates 13 logistics centersthat are not only geographically distributed, but also have different focus areas. We have taken a closer look at the logistics centers in Germany and will go into more detail about the locations in the following section.

Amazon Bad Hersfeld FRA1 & FRA3

The oldest logistics center FRA1 from Amazon was put into operation in 1999. The warehouse in Bad Hersfeld is located directly at a traffic junction in the middle of Germany and therefore has a strategically very advantageous location. 10 years later, the location was expanded to include the FRA3 location.

The logistics center has 21 delivery gates, which enable up to 400 trucks to be processed every day. In total, over 4,000 workers are employed at the largest German Amazon location.

Amazon Leipzig LEJ1

The Logistics center in Leipzig was established in 2006 opened and is therefore Amazon's second oldest logistics center. In 2018, Amazon invested again in the location in order to be able to handle the Christmas business better.

During the Christmas season, 500,000 shipments are sent from this logistics center every day. Around 2,000 employees work here on an area of ​​75,000 square meters.

Amazon Werne EDE4 & EDE5

The Logistics center in Werne consists of two locations: EDE4 started in 2010 in a former Ikea hall, followed a year later by EDE5. The logistics center in Werne is mainly used to process orders for larger items such as televisions, microwaves or other household appliances. 1,550 employees work in the fulfillment center on an area of ​​almost 140,000 square meters.

Amazon Fulfillment Rheinberg DUS2

The fulfillment center was put into operation in 2011 and is characterized by its good connection to the motorway network as well as its close proximity to DHL. Around 1 million items are stored in Rheinberg.

A six-digit number of parcels is sent from the warehouse every day, the fulfillment of which is carried out by around 2,000 employees. During the Christmas season, Amazon doubles the number of employees in order to be able to cope with the order volume.

Amazon fulfillment centers ditch MUC3

The fulfillment center is located in the Near Augsburg and mainly sends deliveries to southern Germany and neighboring countries. In some cases, the goods can be delivered to the end customer on the same day.

Amazon Pforzheim STR1

The Logistics center in Pforzheim opened in 2012 and sends around 60,000 parcels every day. The center specializes in shipping large items such as TVs and garden tools. Many of the shipments are intended as same-day delivery for recipients in Stuttgart, Nuremberg, Munich, Mannheim, Heidelberg and Augsburg.

Amazon Koblenz CGN1

The Logistics center in Koblenz exists since 2012 and has been growing steadily ever since. What started with 250 employees grew into an expanding location with 2,000 employees. Similar to other Amazon locations, the number of workers will double during the Christmas season.

Amazon Brieselang BER3

The location in Brieselang is particularly well suited for logistical purposes and is also used by Zalando, among others. From the approximately 70,000 square meter logistics center, smaller parcels are sent out to recipients throughout Germany.

Amazon Dortmund DTM2

2017 became the first Amazon's redistribution center put into operation in Europe. No parcels are sent from here to recipients, as it is only used as a transshipment warehouse to other Amazon logistics centers in Germany. Here the articles from dealers from all over Europe are bundled and sent on.

In this way, up to 20 million products are transported from the warehouse and taken to other fulfillment centers every week. This means that shipping times and costs can be optimized.

Amazon Winsen (Luhe) HAM2

In 2017, shortly before the Christmas business, the new Amazon logistics location was opened not far from Hamburg. A six-digit number of parcels is sent from these warehouses and some are delivered on the same day.

Amazon Frankenthal FRA7

150 access ramps help to ensure that up to 300 trucks pick up over 100,000 shipments per day in order to initiate delivery to the consumer.

Amazon Mönchengladbach (planned) DUS4

The city of Mönchengladbach is known as a suitable logistics location after Zalando and Primark have already established themselves at this location. For the Christmas business 2019, Amazon also wants to open a shipping center and hire around 1,000 employees. For the high season, around twice as many seasonal temporary positions will help out.

Sorting centers from Amazon

The first sorting center in Germany was opened in Krefeld in 2017. At this location, the parcels delivered by postal service providers are sorted by destination and brought to a distribution center within Europe half a day later at the latest. 200,000 shipments are sorted and processed every day.

Jobs in the Amazon warehouse

With over 600,000 employees worldwide, Amazon is a huge employer. Most of them are employed here in the United States, in Germany a little more than 15,000 people work in the various warehouses (fulfillment centers).

Parcel delivery by Amazon

In recent years it can be observed that Amazon is increasingly investing in logisticsto handle further processes in the supply chain itself. This includes, among other things, delivery to the end customer.

To make this possible, Amazon is opening more and more parcel distribution centers that further minimize proximity to the consumer and guarantee fast delivery over the long term. This is carried out in partnership with medium-sized transport companies, with Amazon taking care of sorting, route planning and control.

Similar to the parcel distribution centers there are Amazon Prime Now stations in Munich and Berlinwho have favourited Prime customers within 1-2 hours supply with selected products.

The Amazon Fresh Depots in Berlin and Munich are used to deliver fresh food and regional specialties. This is made possible by delivery bags that are cooled using cold accumulators and dry ice. Customers in Hamburg can also be supplied from Berlin with this, for example. Until recently, DHL was assigned to deliver here, but Amazon recently ended the partnership and is now taking the reins into its own hands.

Is FBA Right For Me?

Many sellers rely on Amazon FBA because it gives them access to a strong logistics network that enables smooth shipping.

With the various FBA programs, companies of different sizes can choose the right service for themselves and benefit from the various advantages. These advantages are, for example Storage and distribution of the products or the higher visibility on the Amazon website and the handling of customer service.

Of course, said services are associated with storage fees and various other obligations. In addition to the storage fees and distribution costs to be paid, there are also tax duties at.

If online retailers store their goods in different countries, or if they exceed a certain delivery threshold for exports to a certain country, VAT numbers must be applied for and ongoing declarations must be submitted. When it comes to sales tax, it is therefore advisable to consult experts and to outsource these tasks.

Monitor your delivery thresholds

Our sales tax automation software provides you with all the relevant information so that you know what's going on.

However, if the fees and administrative effort are too high for you, you can look for alternatives to handle e-commerce fulfillment.

Alternatives to Amazon FBA

1. Do It Yourself

One option that is chosen by many small and new dealers in particular is to lend a hand to the Packing and sending packages. In this way, companies get to know the processes involved in logistics, be it storage, packaging or shipping. This also enables full control over order processing and quality to be retained, as well as package additions or individual extras.

If you decide to do the fulfillment yourself, it is advisable to do it with one Shipping Service Provider work together, which offers an interface to several parcel service providers (such as DHL, DPD, GLS, etc.).

2. Dropshipping

With dropshipping goods are sent directly from the producer to the consumer. In many cases the products are manufactured cheaply in Asia and then sold to Europe or the USA - with a high price premium, of course. Many people have become aware of this entrepreneurial opportunity and are trying their luck with an online shop in order to become successful on their own.

The problem with this is that it is long delivery times and customers have to wait 2-3 weeks for their goods. This discourages many consumers from buying and also makes it more difficult to return goods - a very unfavorable situation in today's e-commerce age. For this reason, this solution is also not a long-term option for most ambitious online retailers.

3. Outsource e-commerce fulfillment to a service provider

Who his outsource complete logistics can do this through a professional fulfillment service provider, which is often referred to as “3 Party Logistics” or “3PL” and describes the outsourcing of distribution and fulfillment processes.

Online shops that change their strategy in good time in order to be able to upscale benefit from increasing sales with the same or even better service quality in terms of shipping. Outsourcing to a fulfillment service provider gives you access to capacities, know-how and infrastructure that you would otherwise have had to build up over years.

This enables scaling without having to take a lot of risk, as there is no need to expand capacities or hire new staff. The only fixed costs are those for storage.

The difference to Amazon FBA is that fulfillment service providers can often better cater to the individual requirements of retailers, for example to enable custom packaging. In addition, you can detach yourself from the dependency on Amazon and automatically outsource the processing of orders from the online shop thanks to APIs.

Conclusion

The Without any ifs or buts, the Amazon logistics network is one of the strongest in the world and many merchants have made their businesses a success through Amazon's shipping network. Should every seller decide to sell on Amazon? Probably not.

For many retailers, alternative shipping methods are definitely more effective and individuality and independence are clearly key words here. As an e-commerce retailer, you should also be aware of the dependency on Amazon and take into account the restrictions on flexibility.

Online retailers looking for a suitable logistics partner who supports their growth and offers tailor-made e-commerce fulfillment services have come to the right place at byrd. The company has an international logistics network and a web app that enables exactly that.

Ultimately, it is important to obtain sufficient information about all the relevant options, to calculate and weigh them up, and then to decide on the ideal solution.