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Amazon Planning Mini Manhattan Warehouse: Report

New York – may be opening a mini-warehouse in Midtown Manhattan in time for the holidays.

The site, near Macy’s Herald Square on W. 34th St., would hold limited inventory for same-day deliveries within the city, the Wall Street Journal reported.

The facility would also support product returns, exchanges, and pickups of online orders, and could also serve as a showroom for the e-tailer’s proprietary CE devices including Kindle and Fire e-readers, tablets and smartphone and set-top box.

The newspaper cited “people familiar with the plans” and “with the company’s thinking.”

The building, located at 7 W. 34th St., is currently fronted by two apparel stores.

Same-day delivery has become the next battleground in online fulfillment. Amazon has been opening distribution centers across the country in pursuit of that goal, and has begun offering same-day service in 13 major cities including New York for a flat fee of $9.98 ($5.99 for Prime Members).

The company also leases space within supermarkets, drugstores, convenience stores, train stations and shopping centers in select cities where customers can retrieve their orders from Amazon lockers.