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Amazon Builds Out Its Own Delivery Network

Amazon announced on Tuesday it will open its first Massachusetts fulfillment center. The company already has a Sortation Center in Stoughton and a Prime Now delivery hub in Everett, and it has research and technology offices throughout the state.

EcommerceBytes broke the news yesterday that Amazon has a direct-to-consumer delivery hub in Dedham, Massachusetts that the company has yet to publicly disclose. The Dedham hub is part of Amazon’s efforts to build its own in-house delivery network as described by the Wall Street Journal last year.

Marc Wulfraat, president of MWPVL International, a supply chain and logistics company, is an expert in Amazon’s logistics network. He told EcommerceBytes that Amazon has been testing “direct-to-customer” shipping in Seattle, Los Angeles, San Diego, and San Francisco.

He said he expects to see Amazon roll out direct-to-customer shipping capability “big time” over the next year or so in order to take the cost out of shipping. But he expects Amazon to continue using the USPS to deliver anything that can fit in a pouch bag.

Wulfraat also pointed to rumors published Tuesday that Amazon is running its own air cargo operation out of a former DHL facility. Geekwire wrote, “In many ways, opening this type of facility makes sense for Amazon to control the logistics of its shipping network.”

Last month, we noted reports that Amazon had begun assembling a high-level executive team to lead its push to develop its own transportation network and that Amazon could be looking to extend such a service as a third-party offering.

We asked Amazon on Tuesday about its direct-to-consumer deliveries. A spokesperson said its Ops team had nothing to share at this point.

Amazon made public its intention to build the new fulfillment center in Fall River, Massachusetts last year, pegging the job count at 1,000. On Tuesday, it held a press conference with the governor, announcing that the new facility would bring 500 fulltime jobs to the area.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.