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I'd guess that the largest varying factor would be the cost of fuel. Amazon could just hedge on the price of oil and remove the financial uncertainty.
by ChrisLTD 15y ago
I'd guess that the largest varying factor would be the cost of fuel. Amazon could just hedge on the price of oil and remove the financial uncertainty.
- ShabbyDoo 15y agoAmazon probably either explicitly hedges already or does so implicitly by "purchasing" a forward contract for shipping rates from UPS. The risk of varying fuel costs exists no matter who takes ownership of it.