Amazon Searching For Ireland Warehouse As Brexit Threatens Open Border With UK

Seattle-based e-commerce giant Amazon.com Inc. AMZN is on the hunt for real estate in the Republic of Ireland to open a warehouse as Brexit deadline approaches, Bloomberg reported on Wednesday.

Amazon is on the lookout for an area about 100,000 square feet on the outskirts of Dublin, sources familiar with the matter told Bloomberg.

The e-commerce giant currently ships Irish orders from its U.K. warehouse, but the status of border control between the two countries post-U.K.'s exit from the E.U. bloc remains unclear for the lack of an agreement.

The newly-elected Prime Minister Boris Johnson has promised a timely Brexit, which means that the status quo will end by the December 31, 2020 deadline, even if the country can't strike a deal with the E.U. on trade, customs, and other matters.

The e-commerce giant is also concerned with increasing its shipment speed, Bloomberg noted, and moving warehouses closer to the big city helps achieve that goal.

Last week, Amazon banned the third party sellers to cut delivery time in the U.S. for Prime-eligible orders with delivery giant FedEx Corporation's FDX ground services during the rest of the holiday season.

Price Action

Amazon's shares closed 0.37% lower at $1,784.03 on Wednesday.