Amazon's CFO Says Shipping Orders Itself Is Cheaper Than Using FedEx or UPS

cheryl

I started this.
Staff member
Amazon's CFO Says Shipping Orders Itself Is Cheaper Than Using FedEx or UPS - Motley Fool

The company's growing logistics and delivery network is something to keep an eye on.

Amazon.com's shipping costs increased 23% year over year in the fourth quarter. While that's an improvement from the 31% increase during the same period last year, it's still more than the 14% increase in paid units the online retailer managed.

Amazon is working to reduce shipping expenses by moving more of its logistics and deliveries in-house with Amazon Air and a homegrown network of delivery service providers. On the company's fourth-quarter earnings call, CFO Brian Olsavsky provided some additional details about how Amazon manages its shipments between its own network and partners including FedEx and UPS.
 

Fred's Myth

Nonhyphenated American
Amazon's online business model is totally dependent on shipping its product. If your volume of sales increases, it's only logical that your shipping costs will increase. It's disingenuous to point out that shipping costs increased without stating that as a factor of increased volume.
Did labor costs increase? construction costs? utility costs? maintenance?
Amazon's point is specious.
 
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