Amazon, Others See Delivery Costs Rising Due to Trucker Shortage

posted by iHeartMedia's Nik Rajkovic -

A nationwide shortage of truck drivers is starting to drive up delivery costs for Amazon and other e-commerce companies.

The dilemma for Amazon and other online retailers is whether to pay higher freight costs for packages to arrive on time, or take a bite out of revenue.

"To get a truck one-way from Salinas, California to Philadelphia has gone from $2,500 four years ago to $6,500 to $7,000 now," says Burt Flickinger with Strategic Resource Group.

It's already affecting Amazon customers.

"Amazon will continue to raise prices for the Amazon Prime annual membership, the Amazon Prime for food which is an even higher cost of membership, as well as the Amazon monthly memberships," says Flickinger.

But he says rising shipping costs actually level the playing field for traditional retailers looking to compete with Amazon.

"Amazon had it relatively easy for its first two decades and will have more capable, better capitalized competition in the next decade ahead, and the big winner is going to be consumers in every town, city, county and state."

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