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.