Amazon recently announced that they are building a new fulfillment center in Kansas City, Kansas.
What do we know about the new Kansas fulfillment center and what does that mean for Amazon FBA sellers? Let’s have a look:
Quick Facts About the Amazon Fulfillment Center: Kansas City, Kansas
Warehouse Number: TBA
Address: Turner Commerce Center, 6925 Riverview Ave., Kansas City, KS 66102 – Wyandotte County
Size: 855,000 square feet
Products: This fulfillment center will house small sortable items like books, electronics and toys
What does the Kansas City, Kansas Fulfillment Center Mean for Amazon FBA Sellers?
Storing inventory in a fulfillment center in a state almost always creates sales tax nexus for FBA sellers. When the Kansas fulfillment center opens up, it may create sales tax nexus for FBA sellers whose products are stored in Kansas City. (You can see here what every state, including Kansas, has to say about what creates sales tax nexus.)
Kansas is a rather unusual case in the Amazon world in that there were fulfillment centers there, but the last one closed down in 2015. Here’s what we wrote about Kansas, Amazon FBA and sales tax nexus during that time.
When the Kansas City, Kansas Amazon fulfillment center opens, we recommend following these steps:
1.) Determine if you have products stored in Kansas – You can do this by running your Inventory Event Detail Report in Amazon Seller Central or by logging into your TaxJar account and looking for the brown Amazon badge next to the state of Kansas.
If you do have products stored in Kansas, and you determine that that creates sales tax nexus for you company, your next step is to:
2.) Register with the state – Here’s what you need to know to register for a Kansas Sales Tax Permit.
3.) Collect Sales Tax from Your Kansas Customers – If you have nexus in Kansas, be sure you are collecting sales tax from all of your buyers in that state. Here’s how to set up sales tax collection through Amazon Seller Central:
4.) Find out more – Check out our Kansas Sales Tax Guide for Businesses for more about what you need to know about Kansas sales tax.
I hope this has answered your questions about what the new Kansas fulfillment center means for FBA sellers.
See a comprehensive list of all Amazon Fulfillment Centers here.
It’s Official: It’s Amazon for Large KCK Project (Kansas City Business Journal)
Amazon to Open New Sunflower State Fulfillment Center in Kansas City (Amazon Press Release)