/Logos/SupplyKick_Logo.svg "SupplyKick_Logo"){kind=logo}
Amazon shoppers expect their orders fast. They place an order and want it within two days, often next day, sometimes same day. That speed comes from Amazon Logistics: Amazon's transportation, fulfillment, and delivery network that moves products from inbound receipt through storage, order fulfillment, sortation, last-mile delivery, and returns.
Many sellers think Amazon Logistics and Fulfillment by Amazon (FBA) are the same thing. They're not. FBA is the fulfillment program sellers use to store inventory in Amazon's warehouses and let Amazon pick, pack, and ship orders. Amazon Logistics is the broader infrastructure behind it: the network of fulfillment centers, sortation facilities, delivery stations, drivers, and reverse-logistics systems that make FBA (and other Amazon programs) work.
Understanding the difference matters because Amazon Logistics affects more than just how fast a package arrives. It shapes inventory placement decisions, fulfillment costs, in-stock rates, customer tracking expectations, and how returns get processed. For sellers, that means logistics choices affect margin, conversion, and operational complexity.
Amazon Logistics is Amazon's end-to-end network for moving inventory and orders. It includes:
This is bigger than any single seller program. Amazon Logistics supports FBA, Multi-Channel Fulfillment (MCF), Amazon Shipping, and parts of the Seller Fulfilled Prime experience. It's the infrastructure layer that connects inbound supply to customer delivery.
Inventory enters Amazon's network through inbound shipments. Sellers can arrange their own freight or use Amazon Global Logistics (AGL) for cross-border shipping and customs clearance. Some sellers use Amazon Warehousing & Distribution (AWD) to send bulk inventory upstream, then let Amazon auto-replenish FBA inventory as needed.
Inbound placement decisions affect cost and speed. Amazon determines where inventory gets placed across its fulfillment network based on demand forecasting, regional inventory levels, and program settings. AWD users benefit from Amazon covering FBA inbound placement fees as part of the AWD service, which can reduce separate placement-related costs in some workflows.
Shipment delays, labeling errors, or poor forecasting at this stage create downstream problems: stockouts, stranded inventory, or slow check-in times that delay when products become buyable.
Once inventory arrives, it's stored in Amazon's fulfillment centers. Where it's placed depends on demand patterns, product size, velocity, and the seller's program choices (AWD, standard FBA, optimized placement, seller-managed placement).
Inventory placement affects in-stock rates. If a product is popular in a region but Amazon places most units far away, delivery speed suffers and conversion drops. If inventory sits in the wrong location too long, storage fees climb.
Amazon uses AI-based forecasting to position high-demand products closer to customers. Sellers see the outcome of that in faster delivery promises and better Prime badge eligibility. But they also see the cost side: placement fees, long-term storage charges, and the need for tighter replenishment discipline.
When a customer orders, Amazon's fulfillment center picks the item, packs it, applies shipping labels, and hands it off to the sortation network. This is where FBA does its core work: Amazon handles the labor, materials, and quality control.
For sellers, this step is mostly invisible unless something goes wrong: damaged units, mis-picks, or delays that trigger late-shipment complaints.
After packing, orders move to sortation centers where they're grouped by delivery region. From there, they go to delivery stations, which are local hubs positioned close to customers.
Delivery stations are where Amazon's last-mile network begins. Packages get loaded onto delivery vehicles, scanned, and assigned to drivers. This is also where customer tracking updates become more granular: "out for delivery," delivery photos, and real-time location sharing all happen here.
Amazon delivers packages using three main models:
Amazon has invested heavily in expanding last-mile reach. In 2025, Amazon delivered over 13 billion items same or next day globally, including over 8 billion in the U.S. Amazon also announced same-day and next-day delivery expansion to over 4,000 smaller cities, towns, and rural communities by the end of 2025, supported by a $4 billion investment to triple the size of its rural delivery network by the end of 2026.
For sellers, last-mile performance affects customer reviews, delivery-related complaints, and post-purchase trust. When packages arrive late, get lost, or show up damaged, the customer's frustration often shows up in seller feedback even though the seller didn't control the delivery.
When a customer returns an item, Amazon Logistics handles the reverse flow: the package comes back through the delivery network, gets scanned at a return center, inspected for condition, and either restocked, sent to liquidation, or marked as unsellable.
Returns create cost and complexity. Sellers pay return processing fees, absorb the cost of damaged or unsellable units, and sometimes face listing suppression if return rates spike. Understanding how returns move through Amazon's network helps sellers identify whether the problem is product quality, inaccurate listings, or poor packaging.
These terms overlap, but they're not the same. Here's how they relate:
| Program | What It Is | Who Handles Fulfillment | Who Handles Delivery | Inventory Location |
|---|---|---|---|---|
| Amazon Logistics | Amazon's full transportation and delivery network | Varies by program | Amazon (DSPs, Flex, carriers) | Amazon's network |
| FBA | Seller program: Amazon stores, picks, packs, ships orders | Amazon | Amazon Logistics | Amazon fulfillment centers |
| FBM | Seller fulfills orders from own warehouse | Seller | Seller (or seller's carrier) | Seller's location |
| Amazon Shipping | Carrier service for ground shipments (not FBA-specific) | Seller or Amazon | Amazon Logistics | Varies |
| MCF | FBA inventory used to fulfill non-Amazon orders | Amazon | Amazon Logistics | Amazon fulfillment centers |
FBA is the most common use of Amazon Logistics. Sellers send inventory to Amazon, and Amazon handles everything from storage to delivery.
FBM keeps the seller in control. The seller stores inventory, packs orders, and ships using their own carrier or a service like Amazon Shipping.
MCF extends FBA to other sales channels. A seller can use Amazon's fulfillment network to ship orders from their own website, eBay, or other platforms.
Amazon Shipping is a standalone ground-shipping service that sellers can use for non-FBA shipments.
The choice between these models depends on product type, margin structure, how much control the seller wants, and whether cross-channel fulfillment matters.
Most Amazon orders in the U.S. are now delivered by Amazon's own network, not third-party carriers.
Delivery Service Partners (DSPs) are independent small businesses that contract with Amazon to deliver packages. They operate Amazon-branded vans, employ drivers, and handle defined delivery routes. DSPs are the most visible part of Amazon's last-mile network.
Amazon Flex drivers are gig workers who deliver packages using their own vehicles. Flex drivers pick up packages from Amazon delivery stations and complete routes on a flexible schedule. Flex is used for overflow capacity, same-day delivery, and areas where DSP coverage isn't dense.
UPS, USPS, and FedEx still deliver some Amazon packages, especially in rural areas, for certain product types, or where Amazon's network hasn't reached full density. But the majority of Amazon deliveries now happen through DSPs and Flex.
For sellers, this shift matters because delivery performance, tracking accuracy, and customer experience are now largely shaped by Amazon's internal network rather than external carriers. When delivery goes wrong, the customer usually blames Amazon or the seller, not the DSP or Flex driver.
Faster delivery drives higher conversion. Products with Prime badges and same-day or next-day delivery promises convert better than slower options. Amazon's logistics network makes that speed possible by positioning inventory close to demand and moving packages quickly through sortation and last-mile delivery.
But speed depends on inventory placement. If a seller's units are in the wrong region, Amazon can't promise fast delivery, and the listing loses the speed advantage.
Amazon's network decides where inventory gets placed. Sellers using optimized placement send inventory to fewer locations, which can reduce inbound shipping costs but may limit regional availability. Sellers using distributed placement send inventory to more locations, which improves delivery speed but increases inbound complexity.
AWD users benefit from Amazon handling auto-replenishment and covering FBA inbound placement fees, which simplifies upstream inventory planning and reduces some placement-related cost exposure.
Poor placement leads to stockouts in high-demand regions, slower delivery promises, and lost conversions. Good placement keeps products buyable and Prime-eligible across geographies.
Amazon Logistics isn't free. FBA fees include pick-and-pack costs, weight-based shipping fees, and storage fees that vary by season and how long inventory sits. Long-term storage fees and aged-inventory surcharges add cost for slow-moving SKUs.
Inbound placement decisions also affect cost. Amazon charges placement fees for splitting shipments across multiple regions unless the seller uses a program like AWD that covers those fees as part of the service.
For sellers, logistics costs are a margin lever. Faster delivery drives more sales, but the fees can eat into profit if the product's price point or velocity doesn't support the cost structure.
Amazon's logistics network provides detailed tracking: order confirmation, shipment notification, out-for-delivery alerts, delivery photos, and real-time location sharing. Customers expect this level of visibility.
When tracking is accurate and delivery happens on time, trust builds. When packages show up late, get lost, or arrive damaged, customer complaints follow. Even though the seller didn't control the delivery, the feedback often shows up in seller metrics and product reviews.
Returns move back through Amazon Logistics. Amazon inspects returned items, decides whether they're resellable, and charges the seller return processing fees. Unsellable units get marked as such, and the seller absorbs the cost.
High return rates can trigger listing suppression or increased scrutiny. Understanding why returns happen (product quality, inaccurate listings, poor packaging, customer expectation mismatch) helps sellers reduce preventable returns and protect margins.
Need help managing Amazon logistics and operations? SupplyKick handles FBA shipments, inventory planning, placement strategy, and fulfillment troubleshooting so your brand can focus on growth. Connect with our team.
Packages sometimes get lost in sortation, misrouted at delivery stations, or marked as delivered when they weren't. Late deliveries affect customer satisfaction and can trigger seller performance penalties if delivery metrics drop.
Sellers can't directly control last-mile delivery, but they can reduce risk by keeping inventory in stock, using accurate product dimensions and weights, and monitoring delivery performance reports.
When shipments arrive at Amazon fulfillment centers, check-in can take days or weeks depending on receiving-dock congestion. During that time, inventory shows as "inbound" but isn't buyable.
Slow check-in delays when products become available, which hurts sales during high-demand periods. Sellers can reduce check-in delays by following labeling requirements, sending shipments to the correct fulfillment centers, and avoiding peak congestion windows.
Running out of stock kills momentum. Amazon's algorithm deprioritizes out-of-stock listings, and regaining ranking after a stockout takes time.
Stockouts often result from poor forecasting, slow replenishment, or inventory placed in the wrong region. Sellers using AWD auto-replenishment can reduce stockout risk by keeping upstream buffer inventory that Amazon pulls into FBA as needed.
Returns create operational drag. Sellers have to decide what to do with returned units, manage reimbursement claims for lost or damaged inventory, and address listing issues that drive preventable returns.
Returns aren't always the seller's fault. Customers return items for fit, preference, or buyer's remorse. But when return rates spike, it signals a deeper problem: inaccurate product descriptions, poor packaging, or quality issues.
Sellers using FBA for Amazon orders and a separate warehouse for their own website face inventory fragmentation. MCF solves this by letting sellers use FBA inventory for non-Amazon orders, but MCF has different fee structures and doesn't always offer the same delivery speed as FBA for Amazon orders.
Sellers have to decide whether consolidating inventory under MCF is worth the tradeoff in cost and speed for non-Amazon channels.
Better forecasting reduces stockouts and excess inventory. Use historical sales data, seasonal trends, and Amazon's demand forecasting tools to plan replenishment cycles.
AWD users can let Amazon handle auto-replenishment, which shifts forecasting responsibility to Amazon's systems. That works well for steady-velocity products but requires trust in Amazon's algorithms.
Follow Amazon's labeling, packaging, and shipment-prep requirements. Mislabeled or improperly packaged shipments slow down check-in and sometimes get rejected entirely.
Use Amazon's recommended carrier routing and shipment windows to avoid receiving-dock congestion.
Monitor inventory age, storage fees, and sell-through rates. Products sitting too long eat margin through storage fees and risk long-term storage surcharges.
Run regular inventory-health reports and create removal orders or liquidation plans for aged or unsellable units before fees compound.
Not every SKU belongs in FBA. High-value, fragile, or slow-moving products may perform better under FBM or hybrid fulfillment.
Products sold across multiple channels may benefit from MCF to consolidate inventory and reduce fragmentation.
Test different models by SKU and channel, then adjust based on margin, velocity, and customer expectations.
Some brands outgrow DIY logistics management. Signs you might need outside help:
Agencies like SupplyKick can help by managing FBA shipments, handling inventory planning, optimizing placement strategies, coordinating inbound freight, and troubleshooting operational issues that affect in-stock rates and delivery performance. The value isn't just offloading work. It's getting operational clarity and fixing the root causes of stockouts, delays, and margin leaks.
If logistics feels like a bottleneck rather than a system that scales with your growth, outside help can move you from reactive firefighting to proactive inventory management. Talk to our team about how SupplyKick can help.
What is Amazon Logistics?
Amazon Logistics is Amazon's transportation, fulfillment, and delivery network. It includes inbound shipping, warehousing, fulfillment center operations, sortation, last-mile delivery through DSPs and Flex drivers, and reverse logistics for returns.
How does Amazon Logistics work for sellers?
Sellers using FBA send inventory to Amazon's fulfillment centers. Amazon stores the inventory, picks and packs orders, and delivers them through its logistics network. Sellers can also use Multi-Channel Fulfillment (MCF) to fulfill non-Amazon orders using the same network.
Is Amazon Logistics the same as FBA?
No. FBA is a seller program that uses Amazon Logistics infrastructure. Amazon Logistics is the broader network that supports FBA, MCF, Amazon Shipping, and other fulfillment services.
Who delivers Amazon packages for Amazon Logistics?
Most Amazon packages in the U.S. are delivered by Delivery Service Partners (DSPs) or Amazon Flex drivers. Some deliveries still use UPS, USPS, or FedEx, especially in rural areas.
Does Amazon Logistics handle returns?
Yes. When a customer returns an item, it moves back through Amazon's logistics network to a return center where it's inspected and either restocked, sent to liquidation, or marked as unsellable.
What is the difference between Amazon Logistics and Amazon Shipping?
Amazon Logistics is the full network (inbound, storage, fulfillment, delivery, returns). Amazon Shipping is a specific carrier service sellers can use for ground shipments, including non-FBA orders.
Can I use Amazon Logistics without FBA?
Partially. Sellers using FBM don't use Amazon's fulfillment centers, but they can still use Amazon Shipping as a carrier. MCF lets sellers use Amazon's network for non-Amazon orders, which is another way to access Amazon Logistics without traditional FBA.
How does inventory placement work in Amazon Logistics?
Amazon determines where inventory gets placed across its fulfillment network based on demand forecasting, product characteristics, and the seller's program settings (optimized placement, distributed placement, AWD auto-replenishment).
What happens when Amazon Logistics loses a package?
Amazon handles reimbursement for lost packages under FBA. Sellers can file claims through the FBA reimbursement process. Customers typically contact Amazon, not the seller, for lost-package issues.
Is Amazon Logistics faster than UPS or FedEx?
For Prime-eligible products, Amazon's network often delivers faster because inventory is positioned closer to customers and Amazon controls the full delivery path. Non-Prime products or rural deliveries may still go through third-party carriers.
Lorem ipsum dolor sit amet, consectetur adipiscing elit
Sign up to receive our newsletter for growth strategies, important updates, inventory and policy changes, and best practices.
These Stories on Logistics
For press inquiries, please contact Molly Horstmann, mhorstmann@supplykick.com
/Logos/SupplyKick/SupplyKick-Logo_White.svg "SupplyKick-Logo_White"){kind=logo}