This is Why Amazon is On a Fulfillment Center Opening Spree Across the US of A

Fulfillment center Amazon

Amazon has been on a fulfillment center opening spree over the past few months. In line with their aggressiveness to keep expanding their center count around the country, the company announced plans to open three more fulfillment centers in New Jersey, taking the total count in the the Garden State to 10.

The new fulfillment centers in New Jersey are expected to add 2,500 full time employees, taking Amazon’s fulfillment workforce count to 13,000 since entering the state in 2012.

amazon fulfillment center

“We applaud Amazon for investing in several expansions throughout New Jersey and for creating greater opportunities for our high-quality workforce,” Governor Chris Christie said. “Today’s great news is no accident or coincidence. Over the last seven-plus years, my administration has lowered a variety of taxes, improved New Jersey’s business climate, increased the number of well-paying jobs and grown the overall economy. Amazon’s action should encourage even more employers to benefit from all New Jersey has to offer.”

(EDITORIAL NOTE: We truly admire the way Gov. Christie smoothly took credit for Amazon’s decision while ‘lauding’ their efforts. Never mind the teeny-tiny fact that the New York/New Jersey Metro Area is the single most important distribution hub in the United States, right? Spoken like a true blue politician of the highest caliber!)

After announcing plans to add two fulfillment center in Illinois in December, 2016, Amazon stepped up by getting ready to add eight more locations across the country, in states such as Colorado, where it will be opening its account for the first time, and adding to existing muscle in Texas, California, Maryland, Virginia , Florida and New Jersey.

“Fulfillment centers play a crucial role in the shipping journey of Amazon’s products. This is where Amazon stores all the inventory, sorts it, packs it and ships it for final delivery to the end customer.”1redDrop

By increasing its fulfillment center count across the nation in a rapid manner, especially in newer states where it has a much smaller presence, we believe Amazon is trying to widen its footprint to be able to expand its 1-hour and 2-hour delivery capabilities as much as possible. When that presence expands to the level it wants to, we think that AmazonFresh is going to get a fresh start.

The company may combine that with the Amazon Go store concept with no cashier. Shoppers just flash their Amazon Prime credentials when they enter, and are automatically billed when they walk out of the store. But the primary reason is that people across the country will be able to order groceries from the comfort of their home and have it delivered in 1 to 2 hours – possibly the same amount of time it would take to run out to the grocery store in the middle of downtown rush hour.

This ideal hybrid model is probably Amazon rival Walmart’s biggest strength right now, and Amazon has to address a similar model before Walmart once again runs away with the one segment that has been Amazon’s Achilles Heel – GROCERIES!

That’s what we think all this frenzied activity around new fulfillment centers is all about – the need to reduce shipping times across the continental United States so they can start pushing groceries in a big way. It’s a $600 billion market, and not one that’s going unnoticed – or untapped for too long – by the world’s most well-known online retailer. They’ve been at it for the past decade at least, and it’s all finally coming to a head now.

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Source: Amazon