Amazon discovers delivery comes at a price

© Jaroslaw Kilian

Monumental growth continues to be part and parcel of Amazon’s existence. This year, though, the e-commerce giant’s transformation into a logistics company has a cost. Transport costs climbed 30.4% in the second quarter and 34.4% in the first half, to $12.1bn. Milkman’s blog post from Logistics Trends & Insights’ head analyst Cathy Roberson noting that delivery will continue to be a challenge for Amazon in the second half. But with the third quarter beginning on a high, the company remains bullish in its expectations, with sales growth forecasts of 23-31%. That translates into operating income of as much as $2.4bn, compared with $347m a year earlier.