Recent news reveals, Amazon.com Inc. the top ranking online marketplace is going to open a new warehouse in Redlands. It is situated in San Bernadino County east of Los Angeles. This newly launched fulfillment center will be acquiring the fifth position in the line in the state of California.
Amazon is taking this initiative namely to fulfill the terms as per September 2011 deal with state officials. According to this agreement, larger retailers will remain responsible to collect sales taxes from residents. And to make it come true, Amazon is gearing up to build more Fulfillment centers in the state.
Amazon opened its first warehouse in California two years back. At the same time, it opened other facilities also in the cities of San Bernardino, close to Moreno Valley, and two more in Patterson and Tracy, near the San Francisco Bay Area. An amazing data discloses, considering all these centers, the e-retailer currently operates in a 5-million square feet area which covers its entire warehouse space in the state.
Although Amazon has not yet declared exactly when the warehouse would be opened, they have already highlighted the fact that the Redlands warehouse will have a wide floor area over 700,000 square feet. They are also planning the operations of this center in a structured way where the workers will pick, pack and ship large items like big-screen televisions or kayaks etc on behalf of the customers. It is also made clear that Clarion Partners will own the Redlands building and Trammel Crow Co. will be in charge of managing entire construction work.
While discussing this, Mike Roth, Amazon’s vice president of North America operations said, that the company is specially focusing to enhance its growth very fast in this state as they have found great talents here and looking forward to serve their customers in this region.
According to the e-retailer’s Q2 financials, Amazon is putting more stress on fulfillment, and as a result investing more in this area. Record shows it has spent $4.70 billion under this head within the first six months of 2014, which is 29.5% more from the previous year’s expenditure during this time period. Furthermore, with the increased amount of spending, Amazon is also expanding its same-day delivery services.
This is leading numerous consumers in Baltimore, Dallas, Indianapolis, New York, Philadelphia and Washington, D.C., to enjoy the same-day deliveries of certain products more easily these days.
Presently, Amazon owns more than 100 warehouses across the world and it is also credited for maintaining about 50 million square feet of fulfillment space in North America. Scot Wingo, CEO of Channel Advisor Corp., and Colin Sebastian, a longtime Amazon observer and e-commerce analyst who works for Robert W. Baird and Co., think, it is one of the main reasons which boosts and supports retailers to sell on Amazon.