The online retailer has vowed to do “whatever it takes to minimise the impact” on customers and sellers. Amazon CEO Andy Jasser said he expected the company to “incur several billion dollars of additional cost”.
According to the BBC, Mr Jasser also claimed the company has been forced to cough up the cash following “labour supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs”.
He added: “It’ll be expensive for us in the short term, but it’s the right prioritisation for our customers and partners.”
“We’ve always said that when confronted with the choice between optimising for short-term profits versus what’s best for customers over the long term, we will choose the latter – and you can see that during every phase of this pandemic.”
While the UK has faced economic problems in recent months, it has also been shared across the globe.
In California, which is located on the same coast as Amazon’s headquarters in Washington, there have been enormous queues of shipping containers outside the state’s major ports.
The online retailer has already started handing out huge bonuses – worth up to £3,500 – on either side of the Atlantic.
According to a report in the Times earlier this month, Amazon wants to recruit around 20,000 seasonal workers across Britain to alleviate the strains of an overstretched labour market.
However, CNBC claims it is a similar story in the USA.
The figure stood at £6.3million in 2020.
However, Amazon also revealed net sales have increased by 15 percent to $110.8billion.