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Amazon to Open Second Fulfillment Center in Jacksonville
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In order to meet the growing demand in the online shopping space, Amazon.com Inc. (AMZN - Free Report) announced plans to open a second fulfillment center in Jacksonville, FL.
Over the last one year, shares of Amazon have been steadily treading higher. The stock has returned 19.13% compared with the Electronic Commerce industry’s gain of 12.92%.
The New Jacksonville Center
According to Amazon, the new facility, spanning 1 million square foot, will create more than 1,000 full-time jobs. The center will primarily focus on larger items such as household decor, sporting equipment and gardening tools.
Once the construction of the second facility is complete, the company will be able to create more than 2,500 full-time jobs in Jacksonville.Over the past three years, Amazon has announced multiple facilities in Florida including four fulfillment centers as well as Prime Now hubs in Miami, Tampa and Orlando, among others.
Amazon stated that it pays competitive wages and gives healthcare and other full-time benefits. In addition, the company offers programs like Career Choice to help employees pursue courses related to fields that are in demand. The online giant also provides other benefits like generous maternity and parental leaves.
Amazon’s vice president of North American operations, Akash Chauhan recently said, “Florida has been an ideal location to help enable superfast shipping speeds to customers and a source of exceptional talent for Amazon. We’re proud to be creating great jobs with benefits for Floridians.”
What are Fulfillment Centers?
Fulfillment centers are giant warehouses that help online retailers store and ship products and handle returns quickly. These are important for providing the level of service that customers have come to expect from Amazon.
Over the past few years, the company has invested heavily in fulfillment centers across the country to cut shipping costs and speed up delivery. Prompt and accurate delivery of products is crucial to the success of online retail companies.
Small retailers that are unable to provide relatively cost-efficient shipping are also signing up for Amazon’s fulfillment services. Third parties also avail the company’s warehouses and shipping services. These help online retailers boost revenues and drive expansion.
Our Take
The world’s largest online retailer has been strengthening its presence all over the world. To date, Amazon has created millions of full-time jobs and continues to hire manpower to meet growing customer demand.
In our view, Amazon must maintain its 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 less penetration and higher growth rates.
Though increased expenses may hurt the company’s bottom line in the near term, we believe this is necessary for the company to maintain its dominance in this highly competitive market.
Cognex posted a positive earnings surprise of 24.92% in the trailing four quarters.
Mercadolibre delivered a positive earnings surprise of 23.58% on an average in the past four quarters.
TiVo delivered an average positive earnings surprise of 97.76% in the trailing four quarters.
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Amazon to Open Second Fulfillment Center in Jacksonville
In order to meet the growing demand in the online shopping space, Amazon.com Inc. (AMZN - Free Report) announced plans to open a second fulfillment center in Jacksonville, FL.
Over the last one year, shares of Amazon have been steadily treading higher. The stock has returned 19.13% compared with the Electronic Commerce industry’s gain of 12.92%.
The New Jacksonville Center
According to Amazon, the new facility, spanning 1 million square foot, will create more than 1,000 full-time jobs. The center will primarily focus on larger items such as household decor, sporting equipment and gardening tools.
Once the construction of the second facility is complete, the company will be able to create more than 2,500 full-time jobs in Jacksonville.Over the past three years, Amazon has announced multiple facilities in Florida including four fulfillment centers as well as Prime Now hubs in Miami, Tampa and Orlando, among others.
Amazon stated that it pays competitive wages and gives healthcare and other full-time benefits. In addition, the company offers programs like Career Choice to help employees pursue courses related to fields that are in demand. The online giant also provides other benefits like generous maternity and parental leaves.
Amazon’s vice president of North American operations, Akash Chauhan recently said, “Florida has been an ideal location to help enable superfast shipping speeds to customers and a source of exceptional talent for Amazon. We’re proud to be creating great jobs with benefits for Floridians.”
What are Fulfillment Centers?
Fulfillment centers are giant warehouses that help online retailers store and ship products and handle returns quickly. These are important for providing the level of service that customers have come to expect from Amazon.
Over the past few years, the company has invested heavily in fulfillment centers across the country to cut shipping costs and speed up delivery. Prompt and accurate delivery of products is crucial to the success of online retail companies.
Small retailers that are unable to provide relatively cost-efficient shipping are also signing up for Amazon’s fulfillment services. Third parties also avail the company’s warehouses and shipping services. These help online retailers boost revenues and drive expansion.
Our Take
The world’s largest online retailer has been strengthening its presence all over the world. To date, Amazon has created millions of full-time jobs and continues to hire manpower to meet growing customer demand.
In our view, Amazon must maintain its 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 less penetration and higher growth rates.
Though increased expenses may hurt the company’s bottom line in the near term, we believe this is necessary for the company to maintain its dominance in this highly competitive market.
AMAZON.COM INC Price and Consensus
AMAZON.COM INC Price and Consensus | AMAZON.COM INC Quote
Zacks Rank & Stocks to Consider
Currently, Amazon has a Zacks Rank #4 (Sell). Better-ranked stocks in the industry are Cognex Corporation (CGNX - Free Report) , Mercadolibre, Inc. (MELI - Free Report) and Itron, Inc. (ITRI - Free Report) . All of the companies sport a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cognex posted a positive earnings surprise of 24.92% in the trailing four quarters.
Mercadolibre delivered a positive earnings surprise of 23.58% on an average in the past four quarters.
TiVo delivered an average positive earnings surprise of 97.76% in the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>