March 5, 2012, 11:43 AM

eBay’s GSI Commerce expands its Virginia fulfillment center

GSI wants to be able to ship a wider range of products.

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GSI Commerce, a unit of eBay Inc. that provides e-commerce and online marketing technology and services, will spend $1.5 million to expand its Martinsville, VA, fulfillment center, the state announced today. The expanded facility will enable GSI to handle a wider range of products for its more than 200 online retail clients.

"Going forward, GSI Commerce will be able to expand its product mix that will be distributed out of the fulfillment center in Henry County," says Jim Cheng, Virginia’s secretary of commerce and trade. Martinsville is the county seat of Henry County, which is located in south central Virginia, along the North Carolina border.

The expansion will add more than 60 jobs at the fulfillment center, which already employs about 1,000 full-time and seasonal workers, the state says. It adds that GSI, including its facilities outside of Virginia, already operates more than 3 million square feet of fulfillment space across seven centers, with the ability to process more than 30 million packages annually.

GSI did not immediately return a request for comment.

The expansion of the Martinsville facility will be financed in part by a $75,000 Opportunity Fund grant to Henry County from the office of Gov. Bob McDonnell.

GSI, which was acquired by eBay Inc. last year for $2.4 billion, has expanded over the last several years through several acquisitions to offer a range of e-commerce, fulfillment and online marketing technology and services. Following the eBay deal, GSI founder and former chief executive Michael Rubin formed a company, Kynetic LLC, that encompasses former GSI properties including flash-sale e-commerce site Rue La La, the ShopRunner shipping program and a group of sports apparel sites operated under Kynetic’s Fanatics unit.

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