AMAZON's ONWN LOGISTICS NETWORK * U. S. Postal Service
* Washington - Amazon’s shipping costs likely to surge with holiday orders
--- Amazon.com Inc.’s shipping costs are likely to spiral higher in the fourth quarter because of the combination of more expensive fast shipping and greater holiday-related volumes... The online-retail firm has been rolling out free deliveries in as fast as an hour to its Prime members, most of whom pay a $99 annual fee. But Amazon said on Thursday that the faster deliveries are costing it a lot of money—and as online orders surge during the holidays, its shipping costs could top the $3.9 billion it spent in the third quarter... Amazon’s stock was trading down more than 5% Friday after the company reported increased spending on shipping, opening warehouses and other investments, and disappointed on its outlook for the fourth quarter. Its wide guidance range on operating income—forecast between zero and $1.25 billion—prompted concerns about its spending. Its shipping costs jumped 43% in the third quarter, Amazon said Thursday...
(Photo by TED S. WARREN/AP - Amazon.com Inc. boxes are stacked in an airplane hangar in Seattle. As the online-retail firm rolls out more fast, free deliveries, its fourth-quarter shipping costs are likely to increase significantly) -- Seattle, WASH, USA - The WSJ, by LAURA STEVENS - Oct. 28, 2016