Amazon cuts order costs despite AI spending surge
Amazon’s cost to fulfill and deliver each order dropped for a fourth consecutive year in Q3, despite rising transportation costs. The company attributed the efficiency gains to better inventory placement, shorter shipping distances, and package consolidation. Shipping costs climbed 11% year-over-year to $28.3 billion, but growth slowed sharply from prior quarters (14% and 19%). Meanwhile,…
Key points
- Amazon’s cost to serve each order dropped for a fourth straight year, despite 11% year-over-year shipping cost rise to $28.3 billion
- Company plans to spend $220 billion on AI infrastructure in 2026 and ‘meaningfully more’ in 2027, doubling robotic arm fleet
- 1-million-robot network automates 75% of fulfillment operations by 2027, improving productivity and safety
The company doubled its fleet of robotic arms like Cardinal and Sparrow in 2026, automating repetitive tasks in fulfillment centers. Amazon aims to automate 75% of its fulfillment operations and build dozens of robotics-focused facilities by the end of 2027. Its 1-million-robot network is already improving productivity and safety, with further investments planned for last-mile delivery. Amazon’s online store sales grew 1.6% to $68.5 billion, while AWS revenue surged 39.3% to $46 billion, driving total net sales to $201.9 billion. However, earnings fell short of analyst expectations, leading to a 7% stock decline.
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3 episodes →- Amazon cuts order costs despite AI spending surgethis story
Amazon’s AI Bill Accelerates, but Its Cost to Deliver Each Order Keeps Shrinking
wwd.com · 30 October 2026
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