Amazon is finding it necessary to boost wages and increase its use of incentives to fill some of its open positions, resulting in higher costs in its fulfillment network.

“We certainly see stronger demand for workers,” said Brian Olsavsky, Amazon’s chief financial officer, on a conference call with reporters. “So far, we’ve had good success in hiring them with our wage and benefit package that’s pretty competitive. So we’re watching it carefully. But it’s probably one of the bigger elements of inflation in our business right now.” READ MORE