Amazon Will Add At Least Nine Fulfillment Centers In 2011 To Meet Demand

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Amazon reported earnings today, posting strong sales results but missing on net income. Sales came in at $9.86 billion in the first quarter, which is up 38 percent from the same quarter in 2010. On the earnings call CFO Thomas Szkutak said that Amazon is planning to open at least nine fulfillment centers to meet growing demand in sales across the globe.

Amazon’s fulfillment centers enables the company and third-party merchants to store inventory and fulfill orders. He says that at least one of the nine fulfillment centers is currently operational, and another one should be up and running imminently. He expects seven more to open this year, and Amazon may add more if demand grows. Amazon currently has over 50 fulfillment centers across the globe.

As a basis of comparison, Amazon added 13 fulfillment centers last year. Szkutak seemed optimistic about that with the current growth rate, he expects that Amazon will add more than nine fulfillment centers this year. He says there is more demand for capacity both from Amazon’s core retail business and its fulfillment business for third-party merchants.