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Amazon's Kansas Fulfillment Centers to Add Above 1,000 Jobs

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Amazon (AMZN - Free Report) is continuously making efforts to bolster its e-commerce capabilities on the back of its strengthening fulfillment network.

The recently announced plans, regarding two new fulfilment centers in Kansas, are testaments to the above-mentioned fact.

The company intends to leverage both facilities to pick, pack, and ship large-sized and bulky customer items such as rugs, outdoor items and furniture.

Notably, the new facilities, out of which one will be located at 9700 Leavenworth Road, Kansas City and the other at 7130 North Broadway Avenue, Park City, are likely to open in 2021.

Per Amazon, the new fulfilment centers, spanning one million square feet each, will create more than 1,000 full-time jobs. Further, it will offer wages starting at $15 an hour, including other comprehensive benefits that include full medical, vision and dental insurance.

Additionally, maternal and parental paid leaves of up to 20 weeks will be provided to employees.

Growing Investments in Kansas

The world’s largest online retailer has been strengthening presence in Kansas since 2010. The new Kansas City fulfilment center will be marked the second of its kind in the same city.

In addition to the new fulfilment centers, the company will establish a delivery station in Wichita. This is anticipated to be operative in the latter part of 2020.

We note that Amazon’s investment in Kansas exceeded $2.9 billion since 2010.

Further, the company created more than 4,500 jobs in this state and continues to hire manpower to meet the growing customer demand.

We believe growing investments in Kansas make Amazon well-poised to capitalize on the strong economic conditions, and unrivalled and skilled workforce of the state.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Bottom Line

The world’s largest online retailer has been strengthening presence worldwide.

In our view, Amazon must maintain its U.S. market share, while expanding globally to retain the leading position. To this end, the company needs to continue investing more in fulfilment centers as these giant warehouses help online retailers store and ship products, and handle returns quickly.

Moreover, strengthening the delivery system remains crucial for the e-commerce giant in this fast-paced world.

These are important for providing the standard of service that customers have started expecting from Amazon.

We believe all these will continue to aid the company’s e-commerce dominance. Moreover, a strong fulfillment network will continue toprovide it a competitive edgeagainst other e-commerce players such as eBay (EBAY - Free Report) and MercadoLibre (MELI - Free Report) as well as traditional retailers like Walmart (WMT - Free Report) , Target and Kroger, to name a few.

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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