Amazon has made a huge physical expansion over the past two and a half years, adding more than 200 million square feet of new facilities and doubling its physical footprint as the company accelerates plans to expand its already expanded distribution network in response to growing demand from affiliates. home users.
However, all these costs have not led to greater efficiency. Delivery and execution costs now account for 35% of Amazon’s total operating costs, from 28% in 2019 to approximately $ 40 billion in the last quarter. (By comparison, sales of physical and digital products over the same period were about $ 56 billion.) And as slowing online sales slowed after a pandemic boom, Amazon’s huge investment became an obstacle to the end result.