When Kansas closed their Coffeyville facility many FBA sellers wondered whether or not they should cancel their Kansas sales tax permit. We even blogged about the Amazon sellers’ Kansas dilemma here. Now it looks like that quandary might be resolved, at least for some FBA sellers, because Amazon has started shipping inventory out of a new fulfillment center in Edgerton, Kansas.
Amazon has also announced that they will open a Kansas City, Kansas fulfillment center in 2017.
What do we know about the new fulfillment centers and what do they mean for Amazon FBA sellers? Let’s have a look:
Quick Facts About the Amazon Fulfillment Center: Edgerton, Kansas
Warehouse Number: MKC4
Address: 19645 Waverly Rd. Edgerton, KS 66021-9588 (Johnson County)
Size: 800,000+ square feet
Products: Houses large objects like big screen TV’s and kayaks
It’s estimated that the Edgerton, Kansas Amazon Fulfillment Center will create 1,000 jobs.
What does the Edgerton, 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. The new Kansas fulfillment center may create sales tax nexus for FBA sellers whose products are stored in Edgerton. (You can see here what every state, including Kansas, has to say about what creates sales tax nexus.)
Now that products are shipping out of the Edgerton, KS fulfillment center, we recommend following these steps:
1.) Determine if you have goods 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 an 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 centers mean for FBA sellers. While the facility isn’t open yet, check back here for more info as it happens!
See a comprehensive list of all Amazon Fulfillment Centers here.
Amazon fulfillment center to bring 1,000 jobs to Edgerton (The Kansas City Star)
Amazon will occupy all of KC-area’s largest ever industrial spec, hire 1,000 (Kansas City Business Journal)