We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Amazon gets ready to roll out new DCs in six states
inbound

Amazon gets ready to roll out new DCs in six states

August 3, 2012
DC Velocity Staff
No Comments

A few months ago, DC Velocity reported that Amazon had set up a recruiting booth at the Warehousing Education and Research Council's annual conference. At that time, Philip Dana, the company's talent acquisition manager, told the magazine he was looking to hire 5,000 warehousing professionals.

He may have to up that number considerably. According to a recent report in the online magazine Slate, the retail giant has committed to building or leasing new DCs in at least six states, including New Jersey, Virginia, Tennessee, Indiana, Texas, and California. The company is expected to hire 10,000 new workers in California alone over the next four years. Amazon already has 34 warehouses and DCs in North America.

A number of states have passed laws that imposed sales taxes on Amazon's business, and the company had fiercely resisted those mandates. But according to Slate and a series of reports in the Financial Times, Amazon has done an about-face and has signed agreements to collect sales taxes in some of those states. Why? By agreeing to collect sales taxes, Amazon can legally open warehouses and DCs in some of the nation's most heavily populated areas, says Slate's Farhad Manjoo.

The connection between sales taxes and warehouses becomes clearer when you consider that Amazon reportedly asked New Jersey officials for a 22-month extension on its sales tax exemption—just long enough, perhaps, to construct the two 1-million-square-foot DCs the company plans to build in the Garden State. Construction is contingent on Amazon's receiving tax incentives under a separate deal, according to a report in the New York Times.

So why is Amazon so eager to build so many DCs in states where it previously did not want a physical presence? By all accounts, Amazon's explosive expansion will support its plan to make overnight delivery standard and offer same-day delivery for an additional fee. Amazon can only achieve that level of service by locating more warehouses closer to large population centers and by making its warehouses hyper-efficient. (Cue the Kiva robots ...)

Manjoo reports that the retailer is already close to achieving the next-day delivery standard.

To read more about Amazon's warehousing and delivery plans, and what they could mean for traditional retailers, click here.

Logistics Network Design
  • Related Articles

    Amazon to build 750,000-square-foot DC in Joliet, Ill.; second big center there in two years

    Industrial property market to continue multiyear roll in '17, JLL forecasts

    Amazon to occupy fulfillment center in western Michigan

Recent Articles by DC Velocity Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

Warehouse robots drive change in automotive plant

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing