Amazon Aim To Deliver Themselves

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5.4K followers

According to the Wall Street Journal this week it appears that UPS and FedEx will soon be looking at new competition from Amazon who are setting up their own delivery service which will be for businesses.

They are naming their service "Shipping With Amazon" this service will collect packages from businesses who are initially Amazon's third party sellers and then deliver them to their customers. At the moment, it is said that these deliveries will begin within the coming weeks in Los Angeles and then it will expand from there.

News of this service from Amazon caused the shares of UPs and FedEx to fall in the early trading on Friday.

Although UPS and Amazon have a time-honoured partnership in which much of the Amazon Prime deliveries are handled by UPS, it has appeared that in the short term this connection is not about to disappear however, the long-term outlook is different.

However, when asked for a comment the officials from Amazon did not address the report directly but they did state that on behalf of their customers and businesses who sell and grow on Amazon, that they are always experimenting and updating things so that they are able to create lower-cost as well as faster delivery choices.

There are a few factors that will more than likely drive this new venture. These are:

Expansion of the Amazon Prime Membership plus benefits.

Although Amazon has a good grasp on the delivery times of items it sends from its own warehouses, when a customer orders from a third party though, their Prime membership (this offers two-day free shipping on certain items) is rather useless. Therefore, if Amazon are handling their own deliveries, they are then able to in a sense make delivery times faster which will hopefully drive more people to buy up Prime memberships.

At least by delivering themselves, Amazon are able to track their own deliveries and therefore the will not be caught in the middle if customers are claiming to have never received their order.

Their Self Reliance Will Increase

As Amazon is a biome unto itself, they still like to know what is happening in all parts of their sales process. At the moment, the logistics which is one of their most essential component is not within the control of Amazon, therefore, by bringing the deliveries back under Amazon's umbrella for partners who are third-party and then at some point in the future, presumably including first-party goods.This will mean for Amazon will not have the worry about any interruptions with the partner service as well as how packages are handled.

After the recent holiday season where Amazon were hit with delays, it is self explanatory then to understand why they would be looking at exploring alternatives.

Cutting Costs and Making a Profit

Over the last year, Amazon spent almost $20 billion making sure that their customers received their products. This is meaning that they are currently registering big losses on shipping. However, it they were to take either some or even all of the shipping back in-house, they then could potentially take better control over the shipping costs. This would be very helpful if the delivery of drones become as widespread as it is hoped they will.

Despite this fact though, the shipping industry can be a very good place to make a lot of money. Revenues of $18.83 billion have already been reported by UPS in the most recent quarter.

So, if Amazon were to manage to receive even a bit of that pie, then it would be a great boost to its bottom line.

So there we go everyone, you could soon have Amazon delivery vans appearing at your front doors delivering your parcels rather than UPS or FedEx which means that you are able to get parcels quicker.

As it is the start of another new week, have a productive time and




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Recent Comments

44

Thanks for a most interesting post, Cheryl. I don't do much online shopping (or shopping at all, for that matter), but it will be interesting to see if this does improve Amazon's delivery times. Carol

Evening Carol and you are very welcome. I do use Amazon a lot and have had no problem. We can get next day delivery with Prime in Scotland which is really good. xxxx

Thanks for the card. Much appreciated.

Wayne

No problem Wayne, you are very welcome. xxxx

That sounds like there will be some serious competition out there, wait until they get this drone licensing thing down. The air traffic is going to also change. Thinking about investing in a drone now, you know just for practice. lol

Xav

Hi Xav, it definitely does sound like there is going to be serious competition between the three of them. I am not very keen on drones but it is certainly the way everything is going now. xxxx

Thanks for keeping us in the loop. I am surprised they haven't started sooner. The postal services over this side of the Atlantic won't be too happy. Let's see if Amazon can do it better.

You are very welcome Rich and it will certainly be interesting to see what happens and if they are better or worse. Surely they can only be better though. xxxx

Interesting Cheryl, I am a Prime Member of Amazon and so far have had no problems with the timeframe of two days, except on weekends of course.

No problem Harvey, you are welcome. We are the very same and have had no problem. We can get next day delivery with prime here as well even at the weekend. xxxx

No not here, at least that has been my experience.

That's a shame Harvey because the next day delivery can be a good thing when you want something in a hurry. xxxx

Hi Cheryl,

It's always a good idea for a company to have their own delivery system. Saving money is one benefit.

My daughter uses Amazon a lot for everything and she gets her orders pretty quickly already :)

I totally agree with you Patsy and if they are saving money then that can only be a good thing.

We're the same, we use Amazon a lot for different things and we have Prime but even without things can be pretty quick as well.

How are you today? xxxx

I'm not with Amazon, I have specific merchants. But for those who use them as their main source for their websites it's all good.

I'm better today, things happen in life that shock you and I'm one who doesn't allow things to get to me. This one is still with me so it will take time to shake it off. Thanks for asking.

I'm heading out soon for some fresh air :D

Have a great day xx♥

Hi Patsy, I know that we have had no problem with Amazon so far. I do have an affiliate program with them but have never made anything from it.

Patsy I know exactly what you mean and somethings are just that bit harder to shake off but I am glad to hear that you are better.

You have a great day too Patsy. xxxx

The pedant in me cannot resist.
"Amazon is a biome" really?

My apologies John, I have picked the wrong word, that wasn't the one I meant to put in. Not sure what happened there apart from a Senior Moment when I was typing lol. xxxx

Aah - I wondered if you had used some mysterious and metaphorical idea. At least it proved I read your copy!

It did prove that you had read it lol. I was looking for a word instead of ecosphere and biome was in amongst the words but I did not mean to use it lol. xxxx

That is interesting. May you have a wonderful day too.

You are welcome Tania, thank you very much. xxxx

Amazing growth of Amazon, it’s interesting to watch!

Nice Post Cheryl! Thanks!

Monday nearly finished here!

Wayne

Oh no Wayne, does that mean it's nearly time for bed for you?

It is 11.47am here in Scotland and although it was snowing earlier, it is now nice and sunny.

We will need to speak quickly then lol. xxxx

Not far off Chez 20:32 here!

Wayne

You will be half an hour even nearer now then Wayne lol. xxxx

More competition, more improvements. Bring it on.

Definitely Phoeby, improvements are always a great thing to hear about. xxxx

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