Amazon recently announced that they are building two new fulfillment center in Edwardsville, Illinois. This is in addition to the distribution center currently open in Joliet, Illinois and another fulfillment center announced for Joliet in the future. Edwardsville is located in Madison County, in southern Illinois, near St. Louis.
For now, it’s unclear whether both facilities will be Amazon fulfillment centers (which create sales tax nexus for any FBA seller with taxable products stored there) or whether one might be a sort center (which does not create nexus.) That said, Amazon sources have said that one center will be for larger product types like televisions and the other will be for small sortables like books and toys. This suggests that both new centers will be fulfillment centers.
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 Centers: Edwardsville, Illinois
Warehouse Number 1 (Open as of August 2016): STL6 / STL7 – 3931 Lakeview Corporate Drive, Edwardsville, IL 62025 – Madison County
Warehouse Number 2 (Pending/not yet open as of August 2016): STL4 – 3050 Gateway Commerce Center DR S – Edwardsville, IL 62025-2815 – Madison County
Size: Both estimated at 700,000 square feet
Number of Employees: 1,000 between both facilities
What do the Edwardsville, Illinois Fulfillment Centers 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 two new Edwardsville, Illinois fulfillment centers opens up, they may create sales tax nexus for FBA sellers whose products are stored there. (You can see here what every state, including Illinois, has to say about what creates sales tax nexus.)
When the Edwardsville, 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.
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 – Check out our Illinois Sales Tax Guide for Businesses for more about what you need to know about Illinois sales tax.
I hope this has answered your questions about what the new Illinois fulfillment centers mean for FBA sellers. While neither facility is open yet, check back here for more info as it happens!
See a comprehensive list of all Amazon Fulfillment Centers here.