Amazon Regionalization
Amazon Regionalization is the 2023 redesign of Amazon's US fulfillment network into eight largely self-sufficient regions, so that most orders are filled from inventory located near the customer.
What happened and why it matters
Amazon's regionalization showed that where inventory sits drives both speed and cost, and it changed how FBA sellers are asked to send stock. Instead of serving orders from any building nationwide, Amazon split its US network into eight regions with their own inventory. The company said that more than 76% of orders were filled within the customer's region by mid-2023, up from about 62%, with 19% fewer miles traveled and 20% fewer touches per package. For brands, the same logic applies at smaller scale: placing inventory in two or three well-chosen locations can cut shipping zones, transit times, and cost to serve.