+86 15546883080 (China mainland) +852 6554 1700 (Hong Kong)  [email protected]

Amazon is already delivering half of its packages

Amazon has been steadily growing its logistics operations, and it now delivers more than half of all packages in the US, according to Morgan Stanley

It means Amazon, which now operates its own freighters and cargo planes, is accelerating its push to own the entire logistics chain and end its relationship with companies like FedEx and UPS, reports The Verge.

At the current rate, Amazon is set to pass both FedEx and UPS in US package volume, with the company currently delivering 2.5 billion packages per year compared to FedEx’s 3 billion and UPS’s 4.7 billion, Morgan Stanley says. Amazon’s number doubled in just the last year alone, from delivering about 20 percent of all of its own packages to now about half. A substantial contributing factor here is Amazon’s new one-day Prime shipping initiative, which it kicked off earlier this year and promises to bring to more markets and more products as time goes on.

“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers,” CEO Jeff Bezos said of one-day Prime shipping on an earnings call in October.

For Amazon, it’s not just about getting more packages to more customers at higher speeds. It is about the control of the entire logistics chain from start to finish.

More Amazon news

Amazon lifts ban on shipping of non-essential products

Amazon lifts ban on shipping of non-essential products

Amazon is going to start accepting all non-essential products again Amazon has started to allow third-party sellers to ship non-essential items to its warehouses. Starting later this week, the company will begin to accept more products in its warehouses,...

read more
Amazon halts its Shipping Program

Amazon halts its Shipping Program

Amazon to halt third-party delivery service that competes with UPS and FedEx Amazon is taking a break from its two-year-old Amazon Shipping pilot program in the U.S.—in a move seen as potentially benefiting package giants UPS and FedEx. The company...

read more
Amazon Pauses Merchant Loan Repayments

Amazon Pauses Merchant Loan Repayments

Amazon suspends loan repayments amid coronavirus Amazon announced that it would temporarily suspend seller loan repayments, in the prospect of declining sales during the coronavirus pandemic. Repayments under the Amazon Lending program will be paused until...

read more