CFC: Amazon’s shipping costs are growing faster than revenue
Amazon’s shipping costs grew by 37% year-over-year in 2019 compared with revenue growth of 21% and 13% in North America and Europe. This trend has continued in 2020.
Other key findings include:
- In the United States, the e-tailer’s dedicated air network has grown from twenty-three to thirty-two active cities, with more stations expected to come on line this year. The number of operated sectors has grown by more than 30% to 145 flights per day.
- The active Amazon Air fleet operating consisted of fifty-six units, including twelve 767-200Fs, thirty-four 767-300Fs and ten 737-800BCFs. By the end of the year, it will include sixty-eight aircraft, and by the end of 2021, eighty-one aircraft.
- Additional fleet growth and insourcing have the potential to yank volumes out of express networks, with UPS most exposed.
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Shipping costs outpace revenue as Amazon’s air network grows
