The company says the new Canadian fulfillment centre will be its first on the West Coast. The only other centre is in the Toronto area.
The centres help the Seattle-based online retailer (Nasdaq:AMZN) to deal with customs issues and fill the orders placed by Canadian customers.
Amazon.ca offers millions of English and French books, CDs, videos, sports and outdoors products, DVDs and electronics, watches, tools, baby, home and garden products, as well as a vast array of software, video games, and consoles.
The company faced scrutiny in 2010 when it first announced it wanted to set up physical warehouses in Canada.
The plan was reviewed under the Investment Canada Act and was eventually approved, with the condition that Amazon invest more than $20 million, including $1.5 million for cultural events and awards and for promoting Canadian-authored books abroad.
Amazon's commitment also includes adding Canadian jobs, improving service for Canadian consumers, and increasing the visibility of Canadian and French-language products on its Canadian website.
Many independent authors, booksellers and publishers had been wary that Amazon's arrival would mean even more American dominance in Canada's book industry and would diminish the market for Canadian content.