First Michigan Amazon Fulfillment Center Opens
by November 1, 2020
The first Amazon fulfillment center in Michigan is now open and receiving inventory from 3rd party sellers.
Quick Facts About the First Michigan Amazon Fulfillment Center:
Warehouse Number: DET1.
Address: 39000 Amrhein Rd., Livonia, MI 48150
Size: Approximately 1 million square feet
Number of employees: Approximately 1,000 (1,500 seasonally)
Item type: Small, sortable items
What does the Livonia, Michigan 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. Now that the first Michigan Amazon fulfillment center is open, it may create sales tax nexus for FBA sellers whose products are stored in Livonia. (You can see here what every state, including Michigan, has to say about what creates sales tax nexus.)
1.) Determine if you have products stored in Michigan – You can do this byrunning 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 Michigan.
If you do have products stored in Michigan, 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 Michigan Sales Tax Permit.
3.) Collect Sales Tax from Your Michigan Customers – If you have nexus in Michigan, 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 Michigan Sales Tax Guide for Businesses for more about what you need to know about Michigan sales tax.
I hope this has answered your questions about what the new Michigan fulfillment center means 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.
Sources
Amazon to hire 1,000 for new Livonia Distribution Center (Detroit Free Press)
Amazon now hiring for massive new fulfillment center in Michigan (MLive)Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
