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
New Australian Amazon Fulfillment Center in Perth
New Amazon Fulfillment Center in Australia Opening of the new Fulfillment center in Australia is significant for merchants looking to use Amazon FBA in this country Amazon has opened a new fulfillment center in Perth on the Western coast of Australia. The facility...
US considers putting Amazon overseas websites on counterfeit blacklist
Trump administration considers putting Amazon on “Notorious Markets” list Trump administration is considering putting some of Amazon overseas websites on a list of global marketplaces known for counterfeit goods, reports The Wall Street Journal, citing people familiar...
China insists on the removal of existing US tariffs
US-China Trade Deal Beijing’s top priority in the trade deal with the United States is the removal of existing tariffs on Chinese goods “Sources with direct knowledge of the trade talks told the Global Times on Saturday that the U.S. must remove existing...