Amazon will open a second fulfillment center in Joliet, Illinois, and two more fulfillment centers (FCs) in California, bringing the total number of Golden State FCs to nine. Amazon had already announced plans for five new fulfillment centers in the US so far this year.
The new FCs in Tracy and Eastvale will create over 1,500 new full-time jobs for a total of 14,000 full-time hourly associates in the state and will increase its area of operations to nine million square feet. The company also operates sortation centers in the state in Newark and San Bernardino.
Both of the new California facilities are approximately one million square feet in size and will each employ hundreds of full-time associates.
At the Eastvale location, associates will pick, pack and ship smaller customer items, such as books, electronics and toys. At the Tracy facility, the second in the city, associates will pick, pack and ship larger customer items, such as big-screen televisions, sports equipment and patio furniture.
At the new 700,000 square-foot Illinois fulfillment center, associates will pick, pack and ship smaller items to customers such as books, toys and electronics. The new Joliet FC will create 2,000-plus full-time positions. Last year, Amazon opened a 500,000-square-foot fulfillment center in Joliet, creating 1,000 full-time jobs. That number is now up to 1,500 full timers.
So far this year, Amazon has announced new fulfillment centers in New Jersey (Florence and Carteret); California (San Bernardino); Kansas (Edgerton); and Texas (Haslet, in the Dallas-Fort Worth area). The company also announced new centers in the UK (Manchester and Leicestershire), bringing the number of fulfillment centers in the UK to 12.
EcommerceBytes has been reporting on Amazon’s capacity problem, and the company has two ways of dealing with the issue – building new warehouses and managing inventory from sellers who use its Fulfillment By Amazon (FBA) service.
In April, Amazon vowed to work with sellers on inventory stocking and timing. So far that has come in the form of fee changes. First, Amazon temporarily waived fees it charges sellers to remove inventory from its warehouses. Amazon then announced that higher storage fees would go into effect in November and December (fees revert back to standard rates in January).
Amazon spokesperson Tom Cook told EcommerceBytes Amazon does have enough inventory space, but said, “Last year we were really full. This year, we’re trying to get ahead of it and help sellers plan accordingly so we don’t have any space constraints.”
Update: This article previously stated Amazon had already announced plans for six new fulfillment centers in the US so far this year. The number is five.