fufillment costs are going through the roof: Basically, are a form of a "cost of goods sold" . But by classifying these cost below the gross margin line and not above, AMZN can tout increasing margins and it's working hook, line, and sinker. You won't see any mention of it only that their gross margin improvement being so wonderful. Quite the stock reaction. Oh to be rich like Jeff Bezos while making pennies. The envy of the world.