Amazon provides logistics services to external customers, competing with FedEx and UPS

Amazon, not content with just delivering products that customers buy on its website , has been developing its shipping logistics business for years and is now offering logistics services for outside customers , directly competing with FedEx and UPS .

Amazon e-commerce consultant Chris   McCabe said the company hopes to make logistics a new type of U.S. Postal model by delivering packages at a faster speed .

It is reported that Amazon built its global transportation network from scratch in 2014. After seven years , Amazon now has a logistics team consisting of 400,000 drivers, 40,000 semi-trailers , 30,000 trucks and more than 70 aircraft around the world .

In addition, Amazon spent $1.5 billion to build its air hub in Kentucky , which opened in August this year and is Amazon's largest investment to date .

It is understood that Amazon has provided a variety of logistics services to external merchants . In the UK, Amazon has a logistics service plan - researchers at DePaul University predict that Amazon will launch this commercial service in the United States within the next 18 months , while Morgan Stanley predicts that it may be launched this year .

Amazon has begun shipping for the U.S. Postal Service, according to people familiar with the matter . Amazon also offers FBA ( Fulfilled By Amazon ) services for orders outside its website , which explains why some orders from eBay, Walmart and other companies show up at customers’ doorsteps in Amazon packaging .

Amazon seller Bernie Thompson said that his company , Plugable Technologies, has used Amazon's multi-channel fulfillment service to sell electronic products since its inception , and Amazon provides logistics services for orders from all its channels .

Thompson said if a customer goes to eBay to buy a product, it likely came from an Amazon warehouse and is often delivered by Amazon .

The editor learned from Amazon's first quarter financial report that its capital output in logistics increased by 80% year-on-year , and its internal logistics network capacity increased by 50% year-on-year. Amazon currently carries 72% of its platform's parcel logistics business , up from 46.6% in 2019.

Rachel Greer, a former Amazon product security manager , said the current logistics expansion is reminiscent of the previous Prime Video and Amazon AWS services. If Amazon has a business that performs well and has excess resources , they will try to promote it to the outside world.

logistics

Amazon Platform