AmazonÆs distribution costs rise with sales
Amazon.com Inc. posted strong third quarter sales on Thursday, but its expenses to fulfill orders were also much higher than in 2009.
The Seattle company said revenue increased 39 percent to $7.56 billion in the period ending Sept. 30, compared with $5.45 billion in the same 2009 period.
Amazon's third quarter profit increased 16 percent to $231 million.
The online retailer's fulfillment expenses costs rose to $680 million from $466 million for the quarter and to $1.8 billion from $1.3 billion during the first three quarters of the year. Fixed assets acquired under capital leases increased to $283 million from $97 million and fixed assets acquired under build-to-suit leases increased to $159 million from $133 million.
Amazon officials earlier this year said their distribution costs were increasing because they were adding capacity to meet growing demand. The company is adding 13 fulfillment centers this year. During the second quarter alone it hired 2,200 new workers, according to the Wall Street Journal. ' Eric Kulisch