Amazon.com to Open Facility in Nevada

Seattle-based online retailer Amazon.com said it will open a distribution facility in Nevada to serve customers in California and the Southwest, a move that doubles the company’s stocking capacity. With a 322,560-square-foot facility in Fernley, Nev., Amazon.com will be able to buy more books, music and videotapes directly from publishers. This would reduce its reliance on Ingram Book Co., the nation’s largest book wholesaler, which was purchased in November by Barnes & Noble. Amazon also hopes to improve its gross margins by reducing the role of wholesalers. Earlier this week, Amazon.com said that despite fourth-quarter sales, which more than tripled from a year ago, the bottom line would not improve because of lower gross margins and higher expenses. Some industry analysts said the new distribution center could help improve those margins. Amazon shares rose $20.88 to close at $158.88 on Nasdaq.