Amazon fulfilment Costs

Amazon’s global ecommerce operations involve several types of expenses including those related to fulfilment of orders. In 2022, Amazon’s fulfilment costs were $84.3 billion compared to $75.1 billion in 2021. The company generated more than $500 billion in consolidated net revenue in 2022 for the first time in its history. However, it also incurred net losses of about $2.7 billion.

Fulfillment Expenses of Amazon 2010-2022

 Amounts are in millions.

YearFulfillment costs (Millions)

2021: Amazon’s fulfillment costs were $75,111 million in 2021 compared to $58,517 million in 2020.

 The fulfillment costs of Amazon include mainly the costs related to operations and staffing of its North America and international fulfillment centers, customer service centers and physical stores and transaction processing fees. The fulfillment costs of Amazon have increased in the recent years due to the expansion of its fulfillment network. Variable costs also grew because of growth in product and service sales volume and inventory levels.

In 2019, the fulfillment costs of Amazon grew to $40.2 billion compared to $34 billion in 2018, yoy growth of around 18%. 

About Amazon:

Amazon (NASDAQ: AMZN) is the largest ecommerce brand as well as one of the leading cloud services brand. The company which was founded in 1994 has seen enormous growth over the last five years and has greatly extended its range of cloud based services. Amazon has its headquarters in Seattle, Washington, United States. The CEO of Amazon is Jeff Bezos. Amazon Web Services (AWS) is the cloud services platform of Amazon. Amazon is also the largest R&D spender in the entire industry. The company has divided its business into three main segments that include Amazon North America, Amazon International and AWS.