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Rising Shipping Costs Hit Amazon Profits
Amazon on strong course but sees dip due to new costs
Amazon has revealed its Q3 results showing another quarter of sales growth above 20%, however, rising shipping costs have hot the global giant affecting its bottom line.
Amazon has revealed it spent almost US$10 billion on shipping costs, a huge figure that is up 46% from 2018.
The rising costs come with renewed turbulence in shipping, as well as Amazon’s commitment to its Prime service, which aims to deliver one-day shipping around the world.
Amazon boss Jeff Bezos is said to be steadfast that despite the challenges and affects to the bottom line, that Amazon Prime is the best way forward.
Mr Bezos is quoted as saying: "It's a big investment, and it's the right long-term decision for customers.”
Despite Amazon Prime proving tricky, Bezos’s tactics have seen him take Amazon to the very top of e-commerce and become one of the - if not the, according to some polls - richest men (man) in the world.
Amazon has increasingly looked to involve themselves deeper and deeper into the supply chain in recent years, taking actions such as registering as a shipper and crafting a new drone delivery strategy.
Read more: Amazon Buys into CargoJet