Wang contends that recent upward pressure on fulfillment center costs has been driven by facility build outs and growth in the FulfillmentbyAmazon service, not by a structural change in the economics of the business.
He thinks margins will stabilize in the 2012 second half and trend higher in 2013, driven by gross margin upside driven by digital, third-party sales and Amazon Web Services revenue, and from fulfillment productivity gains due to recently opened fulfillment centers.