According to a report released by Morgan Stanley, Amazon Logistics will soon surpass UPS, USPS, and FedEx in the volume of parcels it ships throughout the US. The report states that Amazon are currently shipping over 2.5 billion packages a year which is just below the 3 billion by FedEx and 4.7 billion by UPS. The 9 year long analysis shows that by 2022 Amazon’s delivery volume could reach a huge 6.5 billion and become the largest Logistics firm in the country.
“Our AlphaWise analysis shows that Amazon Logistics already delivers ~50% of Amazon US volumes, focused on urban areas. We see more of this going forward as our new bottom-up US package model assumes Amazon Logistics US packages grow at a 68% [compound annual growth rate from 2018 to 2022].”
– Morgan Stanley,
Amazon’s ability to deliver consumer satisfaction by keeping up with consumer trends and delivering an incredibly fast service is a huge player in its logistic success. The shipping and fulfillment process is quite costly for Amazon but being able to keep a close eye on its delivery network is all part of its grand plan to save money by becoming better equipt for future delivery efficiency. The consumers’ desire to buy products on the site is important in its continued Logistics power, but Amazon remains confident that their large amount of US Prime customers will be impressed by the recent promises to make one-day delivery with Prime standard.
“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. And although it’s counterintuitive, the fastest delivery speeds generate the least carbon emissions because these products ship from fulfillment centers very close to the customer — it simply becomes impractical to use air or long ground routes. Huge thanks to all the teams helping deliver for customers this holiday.”
– Jeff Bezos, Amazon founder and CEO.
One Response
Not gonna lie but Amazon’s shipping partners seem to mess up delivery quite often lately. The problem with this is that buyers give us negative feedback for fulfillment issues like damaged products during delivery.
Amazon customer service sometimes gives us a hard time in removing negative feedback even if it’s against Amazon’s feedback policy.
I think it could be an improvement if Amazon takes up the majority of the delivery. It might make it easier for buyers to understand what FBA means.