Amazon Warns Investors That One-Day Delivery Has a Big Price Tag
- Fast-shipping effort cost more than expected, denting profits
- E-commerce giant says short-term pain will boost sales growth
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Amazon.com Inc.’s results were marred by a surge in costs tied to its one-day delivery push, worrying investors who had grown accustomed to almost two straight years of fattening profits.
Moving millions of products closer to customers to enable one-day delivery proved more costly and complicated than expected, driving up expenses and reducing efficiency in the second quarter, Chief Financial Officer Brian Olsavsky said Thursday on a conference call. The investment will put a strain on earnings for the rest of the year, but has already spurred consumers to buy more on Amazon’s website and helped revenue growth rebound, he said.