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
The reason why so many Amazon searches show you sponsored ads
First consumers, now advertisers Leave Google for Amazon. It makes sense for advertisers to go where their customers are. "Follow the money" is a catchphrase used to help lead you to where true power lies. And investors who follow the money will quickly learn...
Door to Door delivery for Amazon FBA sellers
The main logistic services for door to door delivery among Chinese forwarders are the following: Air transport 1. Express – several variants with transit times from 2 to 10 working days and prices from 4 to 8 USD per kg (to a warehouse in US),...
Amazon is offering 50 percent cheaper shipping than UPS
Amazon is going after FedEx and UPS with steep discounts as it looks to court more sellers to try its pilot shipping service that launched this year, reports CNBC. Ray Berman, an Amazon seller who was recently invited to the program, said the rates were as...
