Amazon In Plans To Open New Shipping And Warehousing Facilities In Nevada

Online retail giant Amazon is planning to open the fourth fulfilment center in Nevada. The size of this fulfilment center to be located in North Las Vegas is expected to be over 800,000 square feet. Around 1,000 full-time jobs are expected to be created. Amazon’s new facility in Nevada will primarily focus on smaller items that include children’s toys, household items and books. The other Amazon fulfilment centers in the state of Nevade are located in Reno and North Las Vegas. Combined the three facilities employ over 3,000 full-time employees.

In the last couple of years Amazon has made heavy investments by opening new fulfilment centers since they are key to offering a level of service which the e-commerce giant’s customers have come to expect. By building and modernizing fulfilment centers Amazon is able to cut the costs of shipping as well as speed up delivery. They are also useful with regards to the quick handling of returns.

Cost-effective shipping

Smaller retailers who don’t have the capacity to offer shipping that is relatively cost-effective are also using the fulfilment services of Amazon. Third parties also make use of the shipping and warehouse services of the Seattle, Washington-based online retail giant. This is consequently expected to assist the e-commerce firm in boosting revenues as well as driving expansion.

Such heavy investments are however serving to keep the margins of Amazon under pressure and this has an effect on the company’s bottom line. The retail business of Amazon is also facing intense competition from the likes of eBay and Alibaba and other players.

The Lord of the Rings

This comes in the wake of Amazon committing to five seasons of The Lord of the Rings show. Last year in November Amazon Studios won the rights to adapt Lord of the Rings trilogy, written by J.R.R. Tolkien, for television by elbowing out Netflix. Terms of the deal require that Amazon begin production within a period of two years. The costs of producing the series are expected to be upwards of $1 billion, making the show the most expensive in the history of TV.

“This is the most complicated deal I’ve ever seen but it was handled relatively quickly, in a way that brought the parties together in a close relationship. It was tough, but everybody liked each other and felt like a team more as the deal closed,” Matt Galsor, the deal’s chief architect and representative of the Tolkien estate, told The Hollywood Reporter.

Leave a Reply

Your email address will not be published. Required fields are marked *