Amazon’s Reno Exit Marks a Turning Point for E-Commerce Logistics

Amazon will shut down its large Reno, Nevada fulfillment center this August.

Is Amazon pulling out of Reno?

Not exactly. It's shifting to a smarter delivery model.

Amazon plans to build a new same-day delivery station in the area — allowing customers to receive packages within hours. This marks the beginning of a broader logistics network upgrade.

Why close a large fulfillment center?

Traditional FCs handle large items, are far from cities, and cost more to run. Even though the Reno site is still operational, Amazon’s choice to close it suggests it won’t renew leases on oversized facilities.

Instead, Amazon is investing in smaller, urban-edge sites that push inventory closer to buyers — cutting delivery times from 1–2 days to just hours.

Why is same-day so important?

As E-commerce delivery speeds improve, consumer expectations rise.

Amazon found that adding “Arrives Today” to listings significantly boosts conversion. In 2024, same-/next-day orders exceeded 9 billion, and related stations grew 60% in one year, now covering over 140 cities (About Amazon).

Fast delivery is now a baseline, not a bonus.

Walmart is racing too

Walmart plans to offer same-day service to 95% of the U.S. by the end of 2025 and is investing in drones to achieve 30-minute delivery (Cord Cutters News).

In short: if you're not fast, you're falling behind.

Is faster also more expensive?

Same-day sites do cost more — closer to cities, more complex sorting. But for Amazon, faster delivery increases order frequency. Prime members average nearly 100 orders a year — nearly two per week. This boosts lifetime value and helps offset cost.

That’s why technologies like autonomous mobile robots (AMRs), which speed up fulfillment and cut delays, continue to see strong investment.