Amazon’s Covid-Era Buildout Proves Too Much as Demand Cools
- Revenue from main e-commerce business declines 3% in quarter
- Overcapacity, inflation and supply issues drive costs higher
This article is for subscribers only.
Amazon.com Inc. acknowledged that a hiring and warehouse-building binge during the pandemic is catching up with the company as e-commerce sales growth inevitably slows from the torrid pace of the outbreak.
That reality will weigh on revenue and profit going forward as consumers return to their pre-pandemic habits and inflation may cool their spending. Fuel and labor costs are already biting, and executives said Amazon was watching for whether shoppers will trim their purchases to offset rising prices.