Amazon battles freight inflation as shipping costs jump 11% in Q3
Amazon's logistics network absorbed higher fuel and linehaul costs in the third-quarter while delivering more than 1.5 billion items same-day or overnight.
Amazon reported record operating profitability in the third quarter on Thursday after the market closed, as the e-commerce giant continued expanding its delivery network and robotics investments amid higher transportation costs.
CEO Andy Jassy said investments in same-day fulfillment facilities and ultra-fast delivery services are helping the company attract more customers while lowering fulfillment expenditures.
“We’re on track to reduce cost to serve per unit for the fourth consecutive year,” Jassy said during a call with analysts.
The Seattle-based company reported third-quarter revenue of $201.9 billion, up 12% from $180.2 billion a year earlier. Operating income surged 61% to $28.1 billion, compared with $17.4 billion in the same period last year.
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