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Amazon spends $3.88B on distribution network, up 35% from prior year | TribLIVE

Want to compete with Amazon? Think supply chain customization. But fast delivery — everything from Prime’s two-day service to one-day or one-hour options, grocery delivery and delivery for third party sellers — doesn’t come cheap. In the April-June quarter, for instance, Amazon spent $3.88 billion on its distribution network, or what it calls “fulfillment,” up […]

Want to compete with Amazon? Think supply chain customization.

But fast delivery — everything from Prime’s two-day service to one-day or one-hour options, grocery delivery and delivery for third party sellers — doesn’t come cheap. In the April-June quarter, for instance, Amazon spent $3.88 billion on its distribution network, or what it calls “fulfillment,” up 35 percent from the prior year. The company spent $13.41 billion on fulfillment in all of 2015, up 25 percent from the prior year — and fully 13 percent of its $104.8 billion in total operating expenses.

Source: Amazon spends $3.88B on distribution network, up 35% from prior year | TribLIVE

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