The online retailer, zulily, will establish a fulfillment center in Bethlehem that is expected to create 1,200 new full-time jobs in the next three years.

The company received a funding proposal from the Department of Community and Economic Development that includes $3.6 million in Job Creation Tax Credits.

The project was coordinated by the Governor's Action Team, a group of economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania.

"I believe our commonwealth is the best place to live, work and raise a family," said Gov. Tom Corbett.

"This is another example of our continued efforts to build a stronger Pennsylvania where job creators like zulily can thrive," Corbett said, crediting his administration's JOBS1st PA initiative.

Corbett launched JOBS1st PA as a comprehensive roadmap to economic recovery that harnessed the state's resources and talents to prioritize private-sector job creation and retention.

According to the Corbett administration, Pennsylvania's unemployment rate stands at a five-year low and jobs have been growing on a consistent basis for nearly four years.

The Bethlehem facility will be zulily's ,northeast fulfillment center. The company plans to make a multi-million dollar investment at the new site.

The lease is to begin late this year with hiring to begin in the first half of 2015.

"We're happy to have selected the state of Pennsylvania and the city of Bethlehem as our next location to expand our fulfillment center network," said Bob Spieth, COO, zulily.

"This center, along with our newly-automated fulfillment center in Ohio and expansion in Nevada, will help us to better serve our growing customer base across the country." Spieth said.

zulily, an online retailer, was launched in 2010 and is headquartered in Seattle with locations in Reno, Columbus and London. zulily's shares are traded on the NASDAQ Global Select Market under the symbol ZU.