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Reaping economies does not happen the quarter/year you grow fast, it takes time to realize that. At high growth phase you are spending a lot on inefficient proc
by manquer 5y ago
Reaping economies does not happen the quarter/year you grow fast, it takes time to realize that. At high growth phase you are spending a lot on inefficient processes and it takes time to normalize that ( even for Amazon)
Also last year was expensive for logistics, very expensive in part due to the supply chain bottlenecks and delays and using alternative shipping like flying more than ships etc. However prices for shipping on Amazon has not really gone up that much, the lack of profitability may reflect that as well.
- rubyfan 5y agoagree, it’s almost better they didn’t suddenly turn a massive profit, next cycle they’d be in the mess peloton is in.