Wed. Nov 20th, 2019

Amazon’s shipping costs soar 46% after promising one-day delivery, but Jeff Bezos says faster shipping is actually better for the environment (AMZN)

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Amazon’s shipping costs soar 46% after promising one-day delivery, but Jeff Bezos says faster shipping is actually better for the environment (AMZN)

amazon package

  • Amazon‘s shipping costs soared 46% in the third quarter to $9.6 billion. 
  • Shipping costs are skyrocketing after Amazon said in April that it would speed up its free delivery promise from two days to one day for Prime members.
  • Amazon CEO Jeff Bezos suggested Thursday that one-day delivery is better for the environment. “Although it’s counterintuitive, the fastest delivery speeds generate the least carbon emissions because these products ship from fulfillment centers very close to the customer — it simply becomes impractical to use air or long ground routes,” he said.
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Amazon’s shipping costs are ballooning as it speeds up delivery.

The company reported Thursday that global shipping costs in the third quarter soared 46% over last year to $9.6 billion. This follows year-over-year cost growth of 36% in the second quarter and 21% in the first quarter.

Shipping costs are skyrocketing after Amazon said in April that it would speed up its free-delivery promise from two days to one day for members of its Prime program.

In a statement on Thursday’s earnings report, Amazon CEO Jeff Bezos highlighted the company’s one-day delivery promise and suggested that speedier delivery is beneficial to the environment.

“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year,” Bezos said. “It’s a big investment, and it’s the right long-term decision for customers. And although it’s counterintuitive, the fastest delivery speeds generate the least carbon emissions because these products ship from fulfillment centers very close to the customer — it simply becomes impractical to use air or long ground routes.”

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