Amazon recently announced that they are expanding their presence in the New Jersey, and that includes building two new warehouses in the cities of Carteret and Florence. Carteret is already home to one fulfillment center – #EWR9.
The facility in Carteret will be entirely new, and judging from the proposed size and the amount of people Amazon says they plan to employe there, it appears to be a new fulfillment center. What do we know about the new fulfillment center and what does it mean for Amazon FBA sellers? Let’s have a look:
Quick Facts About the Amazon Fulfillment Center: Carteret, New Jersey (No. 2)
Warehouse Number: TBD
Size: 800,000 square feet
Employees: Approximately 1,500
What does the Carteret, New Jersey 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 New Jersey fulfillment center opens up, it may create sales tax nexus for FBA sellers whose products are stored in Carteret. (You can see here what every state, including New Jersey, has to say about what creates sales tax nexus.)
When the Carteret, New Jersey Amazon fulfillment center opens, we recommend following these steps:
1.) Determine if you have products stored in New Jersey – 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 New Jersey.
If you do have products stored in New Jersey, 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 an New Jersey Sales Tax Permit.
3.) Collect Sales Tax from Your New Jersey Customers – If you have nexus in New Jersey, 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:
Find out more – Check out our New Jersey Sales Tax Guide for Businesses for more about what you need to know about New Jersey sales tax.
I hope this has answered your questions about what the new New Jersey fulfillment center means for FBA sellers. While neither of the two new proposed New Jersey facilities are open yet, check back here for more info as it happens!