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
Google introduces Cloud Retail Search
Google introduces a new search tool for retailers With Retail Search, retailers can bring "Google-quality" search capabilities to their own digital platforms. This week Google announced Google Cloud Retail Search, a new tool to help retailers improve the product...
Live shopping is the new trend in online retail
European customers are open to live shopping Live shopping is one of the big e-commerce trends in 2021, writes e-commerce-magazin.de. This format has already become the standard for online shopping in China. Chinese influencers take customers on a shopping tour via...
Influencers are the key to Generation Z’s heart
Influencers are the way to reach and engage Gen-Z shoppers Generation Z accounts for more than 40 percent of consumers in the U.S. With a collective annual spending power estimated at $143 billion, this group is projected to be the largest consumer population in the...