Amazon will spend ‘several billion dollars’ to avoid holiday shipping delays

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Illustration by Alex Castro / The Verge

Amazon wants to avoid holiday shipping delays as much as you do. The company said today that it plans to spend “several billion dollars” to avoid problems during the holidays, which might extend from product delivery issues to keeping items in stock. The money will be spent on increased pay for workers, heightened shipping costs, and mitigating supply chain issues.

“It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners,” Amazon CEO Andy Jassy said today in the company’s third-quarter earnings release.

The big spending comes as both a promise and a warning. Amazon’s earnings disappointed investors with a significant dip in quarterly profits from last year. That’s largely due to...

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