Thursday, February 7, 2013

Amazon Returns to the Lone Star State

It was just a few years ago (2011) when Amazon closed its Dallas-based fulfillment center due to a disagreement over state taxes. Now it appears that Texas and Amazon have reconciled. Amazon has just announced that it will be opening three new fulfillment centers in Texas in the upcoming months.
Amazon has recently changed its opinion on state tax collection in other states (including New Jersey, California , and Pennsylvania). With the opportunity to move into these states, Amazon opened more than 20 new fulfillment centers in 2012. The three in Texas will add an additional 3.3 million square feet of warehouse space. The new locations will be:
• Schertz (near San Antonio)
1.2 Million square feet
Will handle large items
• Coppell (near Dallas)
1 Million square feet
Will handle large items
• Haslet (also near Dallas)
1.1 Million square feet
Will handle smaller items like books, small electronics and DVDs
Having more fulfillment centers helped Amazon dropping the amount of shipping costs within its yearly budget. In 2011, the shipping costs for the holiday season covered 5.4% of Amazon’s budget for that quarter. In 2012, the amount for that same time period was only 4.5%.

Not only will the state benefit from the taxes collected, the three locations are projecting to hire more than 1000 workers (and this number will most likely increase dramatically during the holiday seasons).

Around the world, Amazon currently operates 79 fulfillment centers.

Related links:

List of eBay Friendly Wholesalers
Amazon Fulfillment Course – Automate and Grow Your Business with FBA
Amazon FBA Recipe for Success

No comments: