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Amazon showing signs of taking on UPS and FedEx at their own game
来源： 编辑：编辑部 发布：2018/02/27 09:10:30
NASDAQ-LISTED Amazon.com has been preparing to go up against UPS and FedEx for years and it looks like the big e-retailer is about to make its move into package delivery, reports Madison's Wisconsin State Journal.
Also the Wall Street Journal reported the launch of a new "Shipping with Amazon" service that ships packages from businesses to customers, and though it currently is only offered in Los Angeles for third-party merchants selling on its website.
But it seems clear it won't be long before it becomes an option for anyone to take advantage of nationwide. The real question is, when will Amazon do what's truly necessary for it to become a viable rival to the shipping giants, says the Wisconsin newspaper.
Ever since the shipping debacle of Christmas 2013, when UPS and to a lesser extent FedEx were buried under a blizzard of last-minute e-commerce orders that they could not finish delivering until weeks afterward - and which left Amazon paying refunds - the e-commerce giant has been moving to take greater control of delivery.
To reduce its reliance on UPS and FedEx, Amazon deployed third-party delivery to a greater degree, used its dozens of distribution centres to get packages closer to the customer for last-mile delivery, began developing a drone delivery service and ocean freight service and tested an Uber-like app that would pay people to drive packages to destination.
A few years ago, it was reported Amazon had considered buying FedEx; more recently it's been said to be interested in acquiring XPO Logistics.
It has launched Prime Air, a cargo delivery service, using 40 planes from Atlas Air and Air Transport Services Group and is also building an air cargo hub in Kentucky.
At the time of the Prime Air launch, Amazon said the service would be expanded in the coming years. Now, it looks like as though that time has come - and with good reason.
Shipping is a huge expense for Amazon. The company spent US$21.7 billion on it worldwide in 2017, a 34 per cent increase over the year before, and almost double what it spent in 2015.
According to the Wall Street Journal, Amazon could save about $3 per package, or $1.1 billion annually, by having more control over its shipments over long distances. That would allow it to charge even less for goods, a key component of its strategy as rivals like Walmart and Target gear up their own responses to thwart Amazon.
In its annual filing with the SEC, Amazon notes that improving its operating efficiencies allows it to reduce prices for its customers, and one way it's able to do that is through shipping offers.
Also the Wall Street Journal reported the launch of a new "Shipping with Amazon" service that ships packages from businesses to customers, and though it currently is only offered in Los Angeles for third-party merchants selling on its website.
But it seems clear it won't be long before it becomes an option for anyone to take advantage of nationwide. The real question is, when will Amazon do what's truly necessary for it to become a viable rival to the shipping giants, says the Wisconsin newspaper.
Ever since the shipping debacle of Christmas 2013, when UPS and to a lesser extent FedEx were buried under a blizzard of last-minute e-commerce orders that they could not finish delivering until weeks afterward - and which left Amazon paying refunds - the e-commerce giant has been moving to take greater control of delivery.
To reduce its reliance on UPS and FedEx, Amazon deployed third-party delivery to a greater degree, used its dozens of distribution centres to get packages closer to the customer for last-mile delivery, began developing a drone delivery service and ocean freight service and tested an Uber-like app that would pay people to drive packages to destination.
A few years ago, it was reported Amazon had considered buying FedEx; more recently it's been said to be interested in acquiring XPO Logistics.
It has launched Prime Air, a cargo delivery service, using 40 planes from Atlas Air and Air Transport Services Group and is also building an air cargo hub in Kentucky.
At the time of the Prime Air launch, Amazon said the service would be expanded in the coming years. Now, it looks like as though that time has come - and with good reason.
Shipping is a huge expense for Amazon. The company spent US$21.7 billion on it worldwide in 2017, a 34 per cent increase over the year before, and almost double what it spent in 2015.
According to the Wall Street Journal, Amazon could save about $3 per package, or $1.1 billion annually, by having more control over its shipments over long distances. That would allow it to charge even less for goods, a key component of its strategy as rivals like Walmart and Target gear up their own responses to thwart Amazon.
In its annual filing with the SEC, Amazon notes that improving its operating efficiencies allows it to reduce prices for its customers, and one way it's able to do that is through shipping offers.