Amazon says it expects to incur “several billion dollars” of extra prices this vacation season with a purpose to guarantee clients obtain their orders on time.

Andy Jassy, who changed Amazon founder Jeff Bezos as CEO of the corporate in July, mentioned this week that the web purchasing behemoth can be spending large to cope with “labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs.” The spending is supposed to make sure there may be minimal influence on clients and promoting companions within the coming months.

“It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners,” Jassy mentioned.

His feedback got here as the corporate launched monetary information for the third quarter that reveals a income of $110.8 billion, marking the fourth consecutive quarter of income hitting $100 billion. The determine additionally marked a 15% improve from the identical interval a yr earlier, but it surely was considerably decrease than the 27% improve seen with the second quarter. Profit got here in at $3.2 billion, about half of that of the identical interval a yr in the past. Overall, the figures missed Wall Street expectations, inflicting Amazon shares to drop greater than 4% on Thursday.

As a part of efforts to make sure a easy supply operation for patrons over the vacation season, Amazon is taking up 150,000 seasonal staff within the U.S., with a median beginning pay of $18 per hour, sign-on bonuses as much as $3,000, a further $3 per hour for some shifts in sure areas, and the chance to show the place right into a long-term profession on the firm.

In different efforts this yr geared toward enhancing its colossal transport operation, Amazon just lately opened its new air cargo hub in Northern Kentucky. Based at Cincinnati/Northern Kentucky International Airport, the power serves as the principle base for Amazon Air’s U.S. cargo community, processing hundreds of thousands of buyer packages each week.

Amazon is at present getting its geese in a row for November’s Black Friday and Cyber Monday purchasing extravaganzas, with the busy retail occasions set to push the corporate’s complicated supply community to the restrict.

In an effort to ease the demand on supply providers and keep away from a sudden rush across the time of the purchasing festivals, many retailers have already began operating some early Black Friday offers.

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