August 14, 2014, 11:24 AM

Amazon’s new California warehouse fulfills its state tax deal

The fulfillment center will be the e-retailer’s fifth in the state following a 2011 tax deal that requires it to collect sales tax from residents.

Lead Photo Inc. will open its fifth warehouse in California, this one in Redlands, located in San Bernadino County east of Los Angeles.

The e-retailer’s announcement today represents the latest fruit from Amazon’s September 2011 deal with state officials that requires larger retailers to collect sales taxes from residents. Part of the deal called for Amazon to build more fulfillment centers in the state.

Amazon, No. 1 in the Internet Retailer Top 500 Guide, opened its first California warehouse two years ago, with the other facilities located in the cities of San Bernardino, nearby Moreno Valley, and Patterson and Tracy, both of which are located near the San Francisco Bay Area. In total, the e-retailer operates nearly 5-million square feet of warehouse space in the state.

The Redlands warehouse will spread over 700,000 square feet, Amazon says. Redlands workers will “pick, pack and ship large items to customers such as big-screen televisions or kayaks, for example,” Amazon says. The web-only merchant did not say when the warehouse would open. Clarion Partners will own the Redlands building while Trammel Crow Co. will manage construction.

“We have found great talent in the state and we're excited to be growing quickly to serve our customers,” says Mike Roth, Amazon's vice president of North America operations.

Amazon keeps increasing its spending on fulfillment, devoting $4.70 billion to such operations in the first half of 2014, up 29.5% from the same period last year, according to the e-retailer’s Q2 financials. As that spending increases, Amazon also expands its same-day delivery services.Iit recently made it easier for consumers in Baltimore, Dallas, Indianapolis, New York, Philadelphia and Washington, D.C., to receive same-day deliveries of certain products.

The e-retailer operates more than 100 warehouses around the world and maintains nearly 50 million square feet of fulfillment space in North America, according to Scot Wingo, CEO of ChannelAdvisor Corp., which helps retailers sell on Amazon, and Colin Sebastian, a longtime Amazon observer and e-commerce analyst who works for Robert W. Baird and Co.

comments powered by Disqus



Get a Free Subscription to IR


From The IR Blog


Cynthia Price / E-Commerce

4 tips for improving email marketing results

Every piece of data you collect can help you serve your audience exactly what they ...


Bart Mroz / E-Commerce

How smaller retailers can utilize data as effectively as Amazon

Smaller companies have more constraints, but once they set priorities can still benefit greatly from ...

Research Guides