Amazon expects to spend billions due to supply chain issues

Amazon has said it expects to rack up billions of dollars worth of extra costs to address supply chain issues and labour shortages.

In the e-commerce giant’s third quarter results, it reported a sales boost of 15 per cent to $110.8 billion, compared to $96.1 billion during the same period of last year.

However the company’s net income declined by almost half to $3.2 billion, dropping from $6.3 billion in 2020.

“In the fourth quarter, we expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season,” said Andy Jassy, Amazon chief executive. “It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”

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