GeekWire calculated that Amazon’s net shipping loss reached nearly $7.2 billion in 2016, a record at the time. That historical figure is the difference between what Amazon spent to get items to customers and what it charged customers for shipping—not a current loss figure or a separate shipping-loss line Amazon reported.
How much did Amazon lose on shipping in 2016?
GeekWire’s analysis of Amazon’s 2016 financial results, published February 9, 2017, put the company’s net shipping costs at nearly $7.2 billion. GeekWire described this as the highest amount to that point. The figure is an estimate derived from shipping costs and shipping charges, not a standalone “shipping loss” figure disclosed by Amazon.
The comparison with earlier years shows the increase GeekWire was tracking:
| Year | Net shipping cost reported by GeekWire | Context |
|---|---|---|
| 2014 | $4.2 billion | GeekWire analysis, reported February 4, 2016 |
| 2015 | More than $5 billion | GeekWire analysis, reported February 4, 2016; up 19% from 2014 |
| 2016 | Nearly $7.2 billion | GeekWire analysis of Amazon’s 2016 results, reported February 9, 2017 |
Sources: GeekWire’s 2017 analysis and GeekWire’s 2015 analysis.
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What does “net shipping loss” mean?
It means what Amazon spent to get items to customers minus what it collected from customers for shipping. It is a net cost associated with shipping, not the gross amount spent on shipping and not Amazon’s overall operating loss or net income.
That distinction matters when comparing the historical estimate with Amazon’s later annual reports. Amazon’s 2024 Form 10-K reported gross shipping costs of $89.5 billion for 2023 and $95.8 billion for 2024. Its 2025 Form 10-K reported gross shipping costs of $102.7 billion for 2025. These are shipping-cost disclosures, not net figures after shipping charges, so they do not establish a comparable later “shipping loss.”
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Amazon’s accounting description also shows that shipping costs are broader than a last-mile delivery bill. The company says cost of sales includes inbound and outbound shipping and costs related to sortation and delivery centers, including where Amazon acts as the transportation service provider. Supplier inbound shipping is included in inventory and recognized as cost of sales when the products are sold. See Amazon’s 2024 Form 10-K and 2025 Form 10-K.
Why did the shipping cost rise?
The 2017 account linked the increase to a larger volume of shipments and a broader set of free-shipping offers. Amazon CEO Jeff Bezos cited more than 50 million items eligible for free two-day shipping, up 73% year over year. CFO Brian Olsavsky said items shipped from Amazon warehouses for Amazon retail and Fulfillment by Amazon (FBA) rose 40%.
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Olsavsky said the company was “doing fulfillment for ourselves and for our partners at a much greater clip.” He also attributed cost growth to “the usual impact of the additional free shipping programs, as well as the shift toward a higher Amazon Fulfilled growth rate.” These comments describe the business in 2016; they do not break down the nearly $7.2 billion by program or customer group.
At the time, GeekWire described Prime’s free two-day shipping as a customer benefit that could help drive sales while increasing net shipping costs. The article also described Amazon’s investments in ocean freight, air transport, trucks, local delivery and drones as efforts to build alternatives alongside established carriers. Those are descriptions of the 2017 context, not a current inventory of Amazon’s logistics network.
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Does the figure mean Amazon was unprofitable?
No. A net shipping cost is one expense associated with serving customers; it does not say whether the company as a whole made a profit. Amazon reported an overall profit in 2016, and GeekWire noted that Amazon Web Services (AWS) contributed to operating profit and helped offset costs elsewhere in the business.
Nor does the available breakdown show that Prime alone caused the full amount. The 2017 article discussed free-shipping offers, rising warehouse shipment volume and growth in Amazon-fulfilled orders, but did not isolate the exact share attributable to Prime, third-party fulfillment, particular carriers or other shipping programs.
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How to read the later shipping-cost figures
Amazon’s annual reports are useful for understanding the scale and direction of gross shipping costs, but the figures should not be presented as a continuation of GeekWire’s net-loss series. The measures differ: the historical net figure subtracts shipping charges, while the later annual-report amounts cited here are gross shipping costs. Amazon’s 2024 Form 10-K says it expects shipping costs to continue to increase to the extent customers use shipping offers more, the company uses more expensive shipping methods, and it offers additional services. That outlook does not provide a net-loss figure.
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