Amazon Trips Over Slower Sales Growth and Higher Labour Costs

Amazon was to spend billions of dollars in the run-up to Christmas to tackle labour shortages and supply chain problems, the company said.

In the third quarter, Amazon caused almost $1 billion in additional costs associated with wage and incentives.

In its last earnings report, Amazon has been delivering a conservative revenue forecast for the current quarter, reflecting the company's expectations of more shoppers to return to stores and spend on other items like travel.

A spokesman said: 'We estimate that less than 0.001 per cent of Amazon orders are impacted by 'brushing' as Amazon has robust processes in place to ensure that abuses don't disrupt our ratings, search results and other customer experiences.

Amazon said that its sales are projected to range from $130 billion to $140 billion for the fourth quarter of 2020, a rise of between 4 billion and 12 percent compared with the previous quarter.

David Li, another Shenzhen consumer expert, said, 'Brushing is very similar to buying ads or using an' Amazon Certified 'logo in the Amazon universe.

A shortage of manpower also led to a flow of products to fulfilment centres that had enough male personnel to keep the products.

The company plans to hire 275.000 permanent and seasonal workers nationwide, in part to help support its Christmas shopping.