Soaring shipping costs have cut into Amazon’s bottom line, putting an end to more than two years of back-to-back quarterly growth. The online retail giant reported a 26% drop in third-quarter profit as its global shipping cost climbed 46% to $9.6 billion. Amazon has been working to get Prime customers one-day shipping, as well as expanding its workforce — adding nearly 100,000 full-time and part-time employees, largely in fulfilment and transportation roles.
Passionate Leader for DOD Military Retired and Annuitant Pay Operations Division at DFAS
If you have stock in Amazon, this is no worry as the shift from 2 day to 1 day prime shipping will shortly come back to set up this giant for exponential growth. A lot of these posts on failed earnings from Amazon are pointless as they are engaging in finding their equilibrium between traditional store infrastructure versus online by enhancing its logistical capabilities. On the other end of this pendulum is traditional big box stores trying to ramp up their digital online experiences. Target, Walmart, and others area truly behind in capabilities and will have a hard road ahead of them trying to keep up with Amazon as they secure more ground in the long run.
Founder- CEO @ Inception Retail Group | Sr. Executive/Board Advisor | Keynote Speaker | Defining The AI In Retail | Author
#retailrealist Has Amazon entered the real world of retailing? Or is this just an investment to take more share? Either way it is a message that things are changing in the e-commerce world as well, competition and failing, struggling online retailers are likely to get pushed out a lot faster. What does this mean for traidtional retailers? More of the same...retailers need to get their digital strategies right...because this isn’t going to deter consumer shifting buying behaviors. Department Stores need to act much faster with their transformations. #retailing #technology #strategies #ceo #AMAZON #digitalstrategies
Founder & Managing Director @ Harbour Capital?Helping small/mid-sized investment funds and businesses raise capital. New long/short fund coming soon.
I have to listen to the earnings call for AMZN. I would like to hear their spin. Down almost 8% with lower guidance for the 4th qtr. I'm wondering if Long term investors are just taking profits since it was a down quarter with lowered guidance. I'm guessing if you stuck by them over the years where they made no money and now it is making money investors/Wall Street may believe it's probably not a bad idea for long term investors to sell now as pretty much everything is overvalued. Plus, it could also be speculators who do that weird kind of speculation where they buy going into earnings and this time they lost almost 8%. Wall Street is an odd place. AMZN makes no money or loses money for years and investors/Wall St love them, but when they start to make money as they try to build their infrastructure out on multiple projects and have an earning miss with lowered guidance everyone freaks out. Make no money= strong, growing stock price. When AMZN starts to make money but building out other aspects of the business and miss= Everyone sells immediately if not sooner. We will see how committed investors are to AMZN tomorrow as they are heading into the holiday season. However, I still want to hear their reasoning for this last quarter on the CC. #earnings #AMZN #Amazon
President - Breckenridge Landscape
Very surprising that Amazons profits slipped that much. While I understand the cost of a shipping infrastructure build out, you have to wonder if this is going to sink profits for several years as the company keeps moving that direction. Is 1 day shipping that important to consumers? When I purchase items on Amazon, I look for the best product and compare pricing. I’ll wait a few days for something that I really want.