Amazon labour shortage hinders one-day delivery ambitions

Labour shortages have cut into Amazon Inc’s plan to make one-day delivery standard for members of its Prime loyalty club, delaying its bid to cement its lead in e-commerce and sending costs surging ahead of the all-important holiday season.

The comments from the world’s biggest online retailer come as staffing emerges as a significant pain point for US retailers, already battling supply-chain snarls, product shortages, rising inflation and rocketing transportation costs.

Seattle-based Amazon said it anticipates $4 billion in additional labour and related expenses during the fourth quarter, amid pandemic-fueled shortages that made it harder to hire warehouse workers and drivers, and forcing it to route packages to out-of-the-way warehouses with sufficient staffing.