Amazon has received employment-creation tax credits worth $7.8 million in Ohio as the online retail behemoth plans on putting up a fulfilment center in Cleveland. The fulfilment center is expected to provide employment to around 2,000 people. According to The Plain Dealer, the tax credit which will run for ten years was signed off by the Ohio Tax Credit Authority last week.
The tax credits are expected to go towards a building measuring 79,000 square meters located in North Randall. Opening of the building is expected to be next year. State officials have also indicated that another smaller Amazon project located in Monroe will also receive employment-creation tax credits as it stands to generate full-time jobs numbering 1,000.
The development comes at a time when Amazon is planning to enter the Australian market with rival eBay promising that it will not be an easy ride. According to the chief marketing officer of eBay Australia, Tim MacKinnon, eBay had an advantage as it had been operating in Australia for close to two decades and counted over 11 million Australians as members.
“We have two out of three of the top 10,000 Australian retailers on our platform, 60 million listing on the site and that’s the level of selection that people expect. I just can’t see how Amazon will be able to match that,” MacKinnon said in an interview with The Australian.
Amazon’s official launch in Australia is expected to be mid next month. It is understood that the e-commerce giant will kick off operations on a limited scale before it gradually scales up. Though that might be a slow process, the delivery capabilities as well as its pricing model are expected to play to the advantage of the Seattle, Washington-based online retail giant.
eBay brand campaign
Due to the threat posed by Amazon, eBay has kicked off a brand campaign aimed at highlighting its strengths. In the brand campaign eBay will also aim to communicate the fact that it is no longer a platform where used and refurbished products are sold as it initially used to be. According to MacKinnon, about 90% of the products that are currently sold on eBay are new.
eBay is also planning on beefing up its logistics and shipping capabilities with the retailer planning to launch guaranteed delivery soon. It is expected that this feature will be a critical differentiator since one of the most common complaints among online shoppers is a poor shipping experience.