New Jersey’s Governor Chris Christie announced that Amazon will build two large distribution centers, each about one million square feet, in New Jersey. The crux of Christie’s announcement was that the state will now be able to collect sales tax from Amazon on all goods sold in the state.
While the focus of the announcement is on the sales tax, we see an even more intriguing possibility as Amazon builds these distribution centers. Amazon has previously announced the desire to offer same-day shipping, which in part explains the company’s recent purchase of robotics-firm Kiva Systems. Could Amazon be gearing up to launch same-day shipping in the densely settledNew York City metropolitan region? With transportation costs high, we see an increased desire among consumers to avoid driving from big-box store to big-box store to find an item. Amazon appears to be getting ready to service these convenience-oriented customers.
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