Amazon Develops 'Tetromino' Warehouse Concept to Automate Sorting and Loading, Plans $103 Million Pilot

Amazon is developing a new warehouse concept designed to automate one of online retail's most labour-intensive steps: sorting and preparing a jumble of packages for delivery to consumers. The project, internally codenamed "Tetromino," would place facilities at the tail end of Amazon's logistics network. After packages arrive from fulfilment centres, they would be sorted, temporarily stored, arranged in delivery order, and finally collected by drivers, with far less manual involvement than existing delivery stations. The name appears to reference the geometric blocks from Tetris, a fitting metaphor for the complex task of fitting packages of varying shapes and sizes into limited storage space and delivery vehicles.

According to an internal planning document, Amazon considered investing US$103 million to build a pilot facility in 2028, followed by five additional sites in 2029 and ten more in 2030.

The system would pick packages off a conveyor belt, move them onto storage pallets, and use software to release them in the sequence required for delivery.

The concept is part of Amazon's broader efforts to automate its shipping network. Other logistics companies are moving in a similar direction: FedEx is using Dexterity robots equipped with artificial intelligence to load trailers, while UPS and DHL have deployed robotic systems for unloading.

Amazon cautioned that Tetromino is still at an early conceptual stage. A spokesperson confirmed the company continues to test technologies aimed at improving safety and customer experience, but disputed the reported spending estimates and construction timeline, saying the figures in the internal document no longer reflect its current plans. The project offers a window into Amazon's automation ambitions, but the proposed investment and rollout schedule should be viewed as preliminary rather than final.