Amazon's shipping revenue and outbound shipping costs from 2006 to 2016 (in million U.S. dollars)

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This statistic illustrates Amazon.com's annual shipping revenue and outbound shipping costs from 2006 to 2016. In 2016, Amazon's shipping revenue amounted to 8.98 billion US dollars whereas the company's outbound shipping costs came to 16.17 billion US dollars. Net shipping costs in the year amounted to 7.19 billion U.S. dollars.


Amazon product shipping

Amazon’s shipping revenue is comprised of amounts earned from fulfillment by Amazon programs related to shipping services as well as a portion of amounts earned from Amazon Prime memberships. It excludes amounts earned on shipping activities by third-party sellers where Amazon does not provide the fulfillment service. Amazon’s shipping costs are set to increase as customers become more reliant on the online retailer as the product mix shifts to electronics and general merchandise. Further costs are generated through expensive shipping methods and additional services offered by Amazon. The company tries to mitigate costs of shipping over time in part through achieving higher sales volumes, optimizing placement of fulfillment centers, negotiating better terms with its suppliers, and achieving better operating efficiencies.

Currently, Amazon’s annual fulfillment costs amount to 13 percent of the company’s total net sales, up from 12.5 percent in the previous year. The e-commerce company’s annual revenue amounted to 136 billion US dollars in 2016 with an increasing percentage attributable to digital content. The majority of Amazon’s net sales are generated in North America. In 2016, the company’s North American net sales amounted to 79.79 billion US dollars.

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