Amazon, retailers paid more for freight in 3Q

Higher fuel and transportation expenses weighed on retailers’ supply chains during the third quarter, even as fulfillment improvements helped some companies contain costs.

Early reports from Amazon, Tractor Supply and Carter’s point to an uneven environment heading into the holiday season, with shipping inflation alongside isolated delays in getting merchandise into inventory.

A focus on efficiency pointed up how effectively retailers can offset external cost pressures by improving the movement and placement of goods. Amazon (NASDAQ: AMZN) reported benefits from its fulfillment network, while Tractor Supply (NASDAQ: TSCO) cited transportation costs as a drag on margins. Carter’s (NYSE: CRI), meanwhile, reported inbound shipping disruptions that left inventory below plan.

Amazon said on its earnings call that its fulfillment operations faced higher fuel costs and line-haul rates on long distance trucking between facilities. Better inventory placement, shorter shipping distances and package consolidation nevertheless helped lower its cost to serve customers.

This story was originally published by FreightWaves. Read the full story at FreightWaves →