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Amazon (AMZN) to Create Over 500 Jobs With New Fulfillment Center

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

The recently announced plan to open a new fulfillment center in North Little Rock, AR, is a testament to the above-mentioned fact.

The 1 million-square-foot facility is expected to be launched in 2021.

The associates will work on larger-sized customer items such as patio furniture, outdoor equipment or rugs.

The latest center is expected to create more than 500 full-time jobs.

This will mark the company’s fifth distribution facility in Central Arkansas over the past two years or more.

Meanwhile, Amazon has been increasingly investing to build and modernize fulfillment centers, mainly to cut shipping costs and speed up delivery.

Bottom Line

Fulfillment centers help Amazon in storage and shipping of products, in addition to handling returns quickly. In fact, these are important for providing the level of service that customers expect from the company.

In addition, small retailers that are unable to provide relatively cost-efficient shipping are signing up for Amazon’s fulfillment services. Third parties also avail the company’s warehouses and shipping services. These, in turn, help it boost revenues and drive expansion in the long haul.

Although heavy investments in these arrangements (and several other initiatives) keep Amazon’s margins under pressure, these are responsible for the company’s progress. Evidently, Amazon’s retail business is currently unbeatable in terms of price, choice and convenience in the face of fierce competition from Alibaba (BABA - Free Report) and eBay (EBAY - Free Report) , among others.

Furthermore, we believe that Amazon’s long history of execution, growing focus on innovation, technological prowess and huge cash balance not only provide it with flexibility to pursue growth in potential areas but also create value for investors.

Zacks Rank & Stock to Consider

Amazon currently has a Zacks Rank #3 (Hold). A better-ranked stock in the broader technology sector is (OSTK - Free Report) , holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for is currently projected at 20%.

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