Amazon recently announced that they are building a new fulfillment center in Monee, Illinois, near Chicago. This is one of at least 5 Amazon fulfillment centers either open or slated to open very soon in the Prairie State!
What do we know about the new Illinois fulfillment center and what does that mean for Amazon FBA sellers? Let’s have a look:
Quick Facts About the Amazon Fulfillment Center: Monee, Illinois
Warehouse Number: TBD
Address: TBD, Monee, IL (Will County)
Size: 850,000 square feet
Developer: RELP Bailly, LLC, an affiliate of USAA Real Estate
Products: Small items like electronics, books and other consumer goods
What does the Monee, Illinois 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 Illinois fulfillment center opens up, it may create sales tax nexus for FBA sellers whose products are stored in Monee. (You can see here what every state, including Illinois, has to say about what creates sales tax nexus.)
When the Monee, Illinois Amazon fulfillment center opens, we recommend following these steps:
1.) Determine if you have products stored in Illinois – 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 Illinois. Keep in mind that Illinois is already home to at least one other open fulfillment center, so you may already have nexus in the state.
If you do have products stored in Illinois, 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 Illinois Sales Tax Permit.
3.) Collect Sales Tax from Your Illinois Customers – If you have nexus in Illinois, 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 – Go and peruse our Illinois Sales Tax Guide for Businesses for more about what you need to know about collecting and remitting sales tax in Illinois.
I hope this has answered your questions about what the new Illinois fulfillment center means for FBA sellers. Continue to keep an eye out here for more information about new Amazon fulfillment centers in Illinois and all over the U.S.
See a comprehensive list of all Amazon Fulfillment Centers here.
Amazon to open Fulfillment Center in Monee, Continuing Growth in Illinois (Amazon Press Release)
Amazon Plans Another Big Distribution Center in Chicago Area (Crain’s Chicago Business)