Amazon Starts Testing Shipping Business To Take on UPS, FedEx

Amazon has been working towards its dream of becoming a total-fledged courier service for quite some time. We are no stranger to the eastward-commerce giant'south prompt commitment. But, the company is now looking to expand its presence in the logistics space and has launched its 'Shipping with Amazon' service in Los Angeles.

Under this pilot project, the online retailer will at present send its own cargo trucks to choice upward packages directly from the sellers or third-party businesses, according to The Wall Street Journal. It will so either carry the package either to its fulfillment center or other courier partners to speed up the delivery.

This service is currently restricted to Los Angeles (which is a large enough test bed)and only for merchants who sell merchandise through Amazon'south website. This test run has gone live to determine the areas where the company can save both fourth dimension, besides every bit money in the delivery process. In a statement sent to Reuters, the company says,

Amazon is always innovating and experimenting on behalf of customers and the businesses that sell and abound on Amazon to create faster lower-cost delivery choices.

Over the years, Amazon has established its brand equally one of the major online marketplaces and the people are now flocking in big numbers to buy goods on the daily. This has pushed them to lay its logistics groundwork, in the form of enormous warehouses and fulfillment centers across the globe. Amazon likewise established its own armada of trucks and cargo planes that would exist at the forefront of their shipping service.

This revelation from Amazon has ticked off experts and investors in the shipping industry. The share prices of prominent players, such as UPS (United Parcel Service) and FedEx, in the logistics space were seen slipping by close to ii per centum each.

While the e-tailers plan is definitely a wake-up phone call for company's in this space, we won't see Amazon directly abandoning its long-fourth dimension delivery partners right off the bat. Their pilot program is currently in very early on stages and will now be working to overcome hurdles the company might face in completing deliveries from third-party businesses.

Presently, Amazon is heavily dependent on UPS for completing its prime deliveries simply this relation could become plough sour if Amazon'southward shipping business achieves scale in the US. Do yous likewise encounter Amazon becoming completely cocky-dependent in the next v years? Well, I surely do and it has been the company'south plan from the very beginning.

Source: https://beebom.com/shipping-with-amazon-ups-fedex/

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