Amazon Logistics: Understand the Art of Fulfilment

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Updated on: February 10, 2026

Reading Time: 3 minutes

TL;DR: Amazon Logistics achieves massive fulfillment through a network of specialized centers, AI-powered routing technology, and thousands of Delivery Service Partners managing day-to-day operations. The system processes millions of orders annually by combining automation, strategic facility placement, and optimized route planning. Businesses can compete by using route optimization tools like Zeo Route Planner with AI-powered route optimization, helping delivery teams save 2+ hours daily.

Amazon ships millions of orders in a year!

It’s a feat to manage and is only possible through comprehensive logistics systems and processes.

In this blog, we’ll understand the fulfilment network created by Amazon, how Amazon is managing deliveries with Amazon Logistics, and how any business can provide fast deliveries to its customers without relying on Amazon.

Let’s get started!

Amazon’s Fulfillment Network

Amazon’s fulfillment network consists of buildings of different sizes which serve different purposes for processing orders.

1. Sortable Fulfillment Centers: These fulfillment centers are for picking, packing, and shipping smaller items like toys, housewares, books, etc. About 1500 people can be employed in each center. Robots, which are an innovation of Amazon Robotics, are also used to bring higher efficiency to operations.
2. Non-sortable Fulfillment Centers: These fulfillment centers can employ more than 1000 people. These centers are for picking, packing, and shipping heavy-weight or large-sized customer items like furniture, rugs, etc.
3. Sortation Centers: These centers serve the purpose of sorting and consolidating customer orders by final destination. The orders are then loaded onto the trucks for delivery. Sortation centers enable Amazon to provide everyday delivery, including Sundays.
4. Receive Centers: These centers take in large orders of types of inventory that are expected to be sold quickly. This inventory is then allocated to different fulfillment centers.
5. Prime Now Hubs: These hubs are smaller warehouses meant to fulfill same-day, 1-day, and 2-day deliveries. The software system of scanners and barcodes enables the employees to quickly find the location of the items and pick them up.
6. Amazon Fresh: These are physical and online grocery stores with everyday items. It offers same-day deliveries and pickup in select locations.

What is Amazon Logistics?

Amazon delivers products to its customers through its own delivery service called Amazon Logistics. Amazon ties up with third-party contractors and calls them Delivery Service Partner (DSP). These DSPs are aspiring entrepreneurs who treat it as a business opportunity and become partners of Amazon.

The DSP owners manage the employees and the delivery vehicles. They are involved in day-to-day delivery operations. Every morning the DSP reviews and assigns the route to delivery drivers. The drivers also get the devices to be used for making deliveries. The DSP monitors the progress of the deliveries throughout the day and is available to help resolve any issues.

To manage day-to-day operations and to make faster deliveries Amazon provides them with routing and scheduling technology and hand-held devices. Amazon also provides on-road support.

Amazon logistics makes deliveries on all days of the week from 8 am to 8 pm. If a package has ‘AMZL_US’ mentioned on it, that means the delivery is being made by Amazon Logistics.

To keep the customers updated about the progress of the delivery, Amazon offers a tracking link to the customers. The customer can track the arrival and departure of their order from various facilities. They can also sign up for text or email notifications from Amazon regarding their shipment status.

Amazon Logistics for Third-party Sellers

As a seller listed on Amazon, if you are relying on delivery to be made by Amazon then you need to be a bit wary. As there are many different DSPs, the quality of service can differ from one DSP to another. You will not have any control over the delivery experience your customer is receiving. It can result in negative feedback for your brand.

To mitigate this, you must be proactive in seeking feedback from the customers. You can request feedback as soon as the package is delivered to the customer. Share your contact information with the customer so that they can reach out to you in case of any issues.

How Amazon’s Technology Drives Efficiency

Amazon’s success stems from its sophisticated use of technology across every aspect of its logistics operation. According to the U.S. Census Bureau, e-commerce sales have grown exponentially, requiring companies to optimize their fulfillment processes.

The company uses machine learning algorithms to predict demand, optimize inventory placement, and reduce shipping times. This predictive approach allows Amazon to position products closer to customers before they even place orders, significantly reducing delivery windows.

Amazon’s warehouse automation includes robotic systems that can process thousands of items per hour, while advanced sorting algorithms ensure packages take the most efficient path through the fulfillment network. The integration of these technologies has enabled Amazon to handle peak shopping periods like Prime Day and holiday seasons without major service disruptions.

How can you compete with Amazon Logistics?

If you are fulfilling your Amazon orders yourself or if you are not listed on Amazon but want to offer fast delivery to your customers – use route optimization!

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Route optimization software helps the fleet manager plan and optimize the routes for maximum efficiency. It only takes a few seconds to plan the route. You can even plan the routes in advance.

It takes into account driver availability, stop priority, stop duration, delivery time window, and vehicle capacity while optimizing the route. When your drivers follow efficient routes, they are able to make more deliveries in a day. The fleet managers can track the live location of the delivery vehicles and take necessary actions if needed.

Route optimization also helps in enhancing customer experience as a tracking link can be shared with the customer to keep them in the loop. Also, nothing makes a customer happier than a quick delivery!

Building Customer Trust Through Transparency

One of Amazon’s key competitive advantages is its commitment to transparency throughout the delivery process. Customers receive detailed tracking information, delivery time estimates, and real-time updates when packages are out for delivery.

For businesses competing with Amazon, implementing similar transparency measures is crucial. According to the Bureau of Transportation Statistics, customer satisfaction with shipping correlates directly with visibility into delivery status.

Modern route optimization solutions enable businesses to provide Amazon-level transparency by offering real-time GPS tracking, automated customer notifications, and accurate ETA updates. This transparency builds trust and reduces customer service inquiries about delivery status. Companies that invest in delivery visibility often see improved customer retention rates and positive reviews, which are essential for competing in today’s e-commerce landscape.

Hop on a quick 30-minute demo call with Zeo Route Planner to start optimizing your routes asap!

Read more: The Role of Route Optimization in E-Commerce Delivery

For businesses looking to optimize their delivery operations across different industries, explore our comprehensive guides on AI delivery management software and sales route optimization strategies.

Conclusion

There’s a lot to learn from Amazon in terms of managing its operations. It has built a solid network of fulfillment centers and leveraged the power of Amazon Logistics to manage a huge volume of orders. However, a business of any scale can run smooth delivery operations with the help of route optimization and provide an excellent customer experience!

Frequently Asked Questions

How does Amazon manage same-day delivery logistics?

Amazon achieves same-day delivery through strategically located Prime Now Hubs and Amazon Fresh facilities positioned close to major population centers. These smaller warehouses stock high-demand items and use advanced predictive algorithms to anticipate customer orders, enabling rapid fulfillment and delivery within hours of ordering.

What technology does Amazon use for package tracking?

Amazon uses a combination of barcode scanning, GPS tracking, and real-time data processing to provide customers with detailed package tracking information. The system tracks packages from fulfillment centers through sortation facilities to final delivery, providing customers with live updates and accurate delivery time estimates throughout the entire journey.

Can small businesses compete with Amazon’s delivery speed?

Yes, small businesses can compete by implementing efficient route optimization and local fulfillment strategies. By serving specific geographic areas and using route optimization software, smaller companies often achieve faster delivery times than Amazon for local customers while providing more personalized service experiences.

How do Amazon’s Delivery Service Partners maintain quality standards?

Amazon maintains DSP quality through comprehensive training programs, performance monitoring systems, and standardized delivery protocols. DSPs must meet specific delivery performance metrics, customer satisfaction scores, and safety standards to maintain their partnerships with Amazon’s logistics network.

What features should businesses look for in route optimization software?

Essential features include real-time GPS tracking, automated customer notifications, and capacity-based routing that considers vehicle limitations and time windows. Zeo Route Planner offers AI-powered route optimization with live ETA updates and branded tracking pages, trusted by 1.5M+ users across 150+ countries to save 2+ hours daily on delivery operations.