Amazon Talks about Moves into FedEx, UPS Shipping Territory

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Paul Ziobro at the Wall Street Journal published an article late last month about Amazon’s expansion of their delivery system.  Read on for a quick synopsis of what Ziobro had to say about the company’s ideas:

One of the main concerns with shipping packages is fuel surcharges, and any extra fees that will make deliveries to homes more costly.  Because of this cost, Amazon has created its own delivery network, called “Amazon Shipping”.

This was first tested in London and Los Angeles, and now the company is expanding it.  The delivery network would involve Amazon workers transporting the purchased packages from the merchants’ warehouses directly to the consumer’s home address.

Because Amazon is already set up to deliver products to homes already, any extra surcharges are already factored into the cost of purchase.  This way, the consumer won’t be hit with any added cost that they might see if their product was brought to them by way of FedEx or UPS. By taking more of the delivering into their own hands, Amazon will begin to break away from the U.S. Postal Service, among other carriers.

How do FedEx and UPS feel about this?  They are underwhelmed, and do not seem to be sweating the possible lost business.  The two aforementioned companies believe in their reputations and their global strength and reliability.

Only time will tell how Amazon Shipping works, and if they will successfully become self-sufficient.  Check out the full article here: https://www.wsj.com/articles/amazons-pitch-to-woo-shippers-fewer-fees-than-fedex-ups-11548251763