Evri will open a new depot in Plymouth next month, creating over 50 jobs in the area.
It said the development was part of its commitment to investing in infrastructure to support the growth in online shopping.
The new site is on the Parkway industrial estate and taking up 60,000 sq ft, it is almost double the size of the existing depot at the nearby Bell Close, which has been managed by a third-party contractor.
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The decision by Evri – formerly Hermes UK – to invest over £1m in the development and move the operation in-house will increase capacity fivefold and help it control service levels.
It added that all existing permanent workers will TUPE across.
Ethan Treble-Westlake, depot manager, said: “At our new depot we will be able to handle up to 480,000 parcels each week at peak times and provide a strong delivery service for the local community and a good working environment for our people.”