(Reuters) –Amazon.com Inc reported Thursday a decline in profits that will likely continue into the holiday quarter. This is due to heavy spending on delivery operations, which reduces its online sales.

After-hours trading saw shares fall 4%

Following a successful year, the largest online retailer in the world is now facing tougher prospects. To attract high-turnover workers, the company has raised average salaries and promoted bigger signing bonuses in an effort to increase its labor market.

The company is currently dealing with disruptions in global supply chains. The company has been able to double its container processing capabilities, expand its partner network for delivery services, and ramp up warehouse investment.

However, all this comes with a price. It expects its operating profit to range between $0 billion and $3.0 trillion for the current quarter, less than $6.9 million Amazon (NASDAQ.) reported the year before.

Andy Jassy was appointed CEO of Amazon in July. He stated in a press release, that Amazon would have several billion dollars more in consumer expenses to address higher shipping costs and increased labor requirements.

He said that Amazon was “doing everything it can to minimize the effect on customers and sellers partners this holiday season.” “It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”

It has taken steps to ensure that the retailer does not repeat 2013’s mistakes, which led to some people missing Christmas Day due delays.

The company began encouraging its customers to buy holiday offers as soon as October 4th, in order to increase sales.

E-commerce firm Amazon forecasts fourth-quarter sales of $130 billion to $140 million. According to IBES data by Refinitiv, analysts were anticipating $142.05 billion.

The retail sector is facing shortages in everything, from toys to clothing. Nike (NYSE: ) Everything from sneakers to laptops makes it hard for stockists to prepare for holiday season.

Amazon sales expectations were also disappointed for the third quarter. They grew at their lowest pace since COVID-19.

The total net sales increased to $110.81 Billion in the third quarter ending Sept. 30 from $96.15 Billion a year ago.

Refinitiv data shows that analysts predicted $111.60 Billion, as per IBES.