Amazon.com Inc. (AMZN - Free Report) has announced plans to open its first fulfillment center in Mississippi in order to meet growing demand for online shopping.
Since the last few years, the company has been spending heavily on its new fulfillment centers, which aid online retailers to store and ship products, and handle returns quickly. Reportedly, the new store will be close to the Memphis International Airport, which is the main shipping hub for FedEx.
Notably, the tech giant currently has 139 fulfillment centers in the United States. Fulfillment centers have now become a pre-requisite for providing the level of service that customers have started expecting from Amazon.
Shares of the company have gained 25.6% in the past year against the industry’s decline of 13.9%.
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The latest fulfillment center spans more than 554,000 square feet and will create 850 new full-time jobs. The center will primarily focus on consumer goods and will help in packing and shipping of garden products and toiletries.
Grants from Mississippi Development Authority, assistance for road improvement, property tax exemptions from Marshall County and aid from Tennessee Valley Authority have been instrumental in Amazon’s decision to open a center in Mississippi. Moreover, the company is expected to benefit from the region’s skilled workforce.
Amazon stated that it will pay $15 minimum hourly wage and provide healthcare along with other full-time benefits. In addition, the company will also offer programs like Career Choice to help employees pursue courses related to fields that are in demand. Moreover, the online giant will also provide other benefits like generous maternity and parental leaves.
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