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Amazon (AMZN) to Unveil New Fulfillment Center in Georgia

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In a bid to meet the ever-increasing demand for online shopping, Amazon.com Inc. (AMZN - Free Report) announced its plan to open another fulfillment center in Braselton, GA.

The Braselton facility, spread across 600,000 square feet, will create 500 new full-time jobs. The company already has more than 1,500 full-time employees at its existing facilities in the state. The new facility will focus more on picking, packing and shipping larger items, such as household decor items, sporting equipment and gardening tools, to name a few.

Amazon stated that it offers competitive hourly wages, including healthcare and other full-time benefits like health insurance and 401(k) retirement plan. In addition, the retail giant offers bonuses and company stock awards.

Amazon plans to expand its fulfillment centers across the country. In recent months, the company spent heavily on ensuring on-time delivery of goods and reduction of logistical costs by adding a fleet of cargo trucks and opening smaller distribution centers to handle last-minute deliveries to customers’ doorsteps.

Just last month, the company announced its plan to open two fulfillment centers in Tracy and Eastvale, both spanning one million square feet. The centers are expected to create hundreds of full-time jobs each.

Fulfillment centers are giant warehouses that help online retailers to store and ship products, and handle returns quickly. Prompt and accurate delivery is integral to the success of an online retailer.

In our view, Amazon must maintain the U.S. market share while expanding globally to retain its leading position. For this, the company needs to invest more in fulfillment as well as technology and content, especially in international markets with lesser penetration but higher growth rates. Despite the near-term pressure on the bottom line, these are necessary to maintain the company’s dominance in this highly competitive market in the long run.

Currently, Amazon has a Zacks Rank #3 (Hold).

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