The everything shipper

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Amazon is getting closer to being able to send you everything from any store.

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Running news: Dave Clark, the company’s CEO of the worldwide consumer business told CNBC this week Amazon will be “probably the largest package delivery carrier in the US” by early 2022, if not later this year.

  • Through its Fulfilled by Amazon service, the company is already shipping orders to places like eBay and Walmart In Amazon packaging.

why it matters: The popularity of e-commerce has changed the needs of the shipping industry. Amazon, one of the drivers of that popularity, built a logistics network to support its growing needs — so much so that it’s been able to take on excess capacity.

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state of play: UPS and FedEx were born in the world of business-to-business delivery and have been a mainstay of their service, Mark Wolfratt, president of supply chain consulting MWPVL International, tells Nerdshala.

  • One truck can stop at one place and deliver 200 packages.
  • With the increasing demand for e-commerce, these companies now need more workers and trucks to deliver one or two packages at 200 locations.

Where Amazon Business Can Win: By offering more shipping and logistics to third-party vendors and smaller companies that don’t have enough shipping they need to get favorable rates elsewhere.

  • Amazon may enter the equation to provide low cost options (Especially if it’s along existing Amazon routes), says Pat Donnelly, a senior analyst at Third Bridge.
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yes but: Labor is the basis of development. Judging by the near-constant reports from Amazon’s unhealthy labor practices, achieving that vision may come at an undeniable human cost.

What are they saying: “Eventually, you’re going to run out of people willing to do this job … to go out there and bust your ass for 10 hours a day,” Wolfratt says.

  • Amazon responded to a request for comment.
  • A FedEx spokesperson declined to comment.
  • UPS spokesman Glenn Zakara told Nerdshala that the company “will not speculate or comment on any other company’s business projections,” adding that “Amazon continues to deliver packages for its customers and is also a significant customer of UPS.” We see this as a mutually beneficial relationship.”

what to watch: Really going toe to toe would require a lot of investment, says Donnelly, but as we’ve seen, “Amazon isn’t afraid to lose money while growing a business. And so it fits very well into their playbook.” Will happen.”

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