The 690,000 square feet One Distribution Centre is Amazon's first new use building in the city for 15 years and will create 1,400 jobs.
The site is capable of shipping up to five million items a week and bosses say it is a re-invention of how the company runs its logistics operation..
It is capable of storing 16 million items at peak times, which is about twice that of other sites.
Amazon says the new centre will take the pressure off its fulfilment centres so they can focus on getting orders out the door to customers.
New features in the centre include the latest pallet computer vision technology that checks products the moment they come off the lorry, which speeds up the flow of stock in and out of the building.
It will also operate the largest fleet of powered industrial trucks of any Amazon site in the UK.#
Tomislav Batinic, site leader, said: “This site is a complete re-invention of how we run part of our logistics operation, and a historic moment for Amazon.
"It is the first of its kind in the UK and the largest in Europe, and it is fitting that it is happening in Peterborough – a city with real history.
"Products arrive from suppliers at one end and head out to fulfilment centres across the country at the other, all under one roof.
“This type of site will be the template for how we run our operations in the years ahead, so it is a privilege to be the one introducing it.
"We have called our team ‘Team Founders’ to mark how historic this moment is – and we are not just launching a building, we are laying the groundwork for something that will grow and endure long after Day One.”
Amazon says that the centre does not send items directly to customers.
Instead, it holds the products customers buy most often, such as household essentials like pet food and toilet paper, and feeds them out to about 20 fulfilment centres across the country, where they are combined with the rest of a customer's order for delivery.
A spokesperson said: “By holding the most popular products closer to the heart of the network, it means more items can be offered for same-day or next-day delivery, and a wider selection kept reliably in stock.
"It also helps Amazon keep deliveries running smoothly through its busiest periods, including Prime Day and Black Friday."
Among the new staff roles at the centre are Powered Industrial Truck drivers to inventory control, team leaders and area managers.
All employees receive competitive pay plus a benefits package including private medical insurance, life assurance, income protection, subsidised meals, a 10% uncapped grocery discount and a company pension — worth thousands of pounds a year on top of salary.
The site forms part of Amazon's £40bn UK investment plan for 2025–2027 and sits alongside its long-established Peterborough fulfilment centre, which has operated since 2010 and employs more than 1,000 permanent staff
