Amazon Still Has More Demand Than It Can Handle

"We've run out of space," Amazon.com (NASDAQ: AMZN) CFO Brian Olsavsky said during the company's second-quarter earnings call.

Amazon's rapidly expanding its fulfillment network footprint. But its blowout second-quarter results may foretell another capacity issue. Amazon customers might face slower shipping speeds and out-of-stock issues, as they saw in March and April.

Olsavsky said Amazon will have about 50% more warehouse and fulfillment center space by the end of the year. Most of that capacity will ramp up over the next few months as Amazon prepares for a delayed Prime Day and holiday shopping in the fourth quarter. Still, the growing capacity might not be enough to get Amazon fully up to speed with its demand in the third quarter. But the aggressive expansion indicates that management expects the increased demand to persist through the rest of the year.

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Source Fool.com