Amazon Shipping Expands to New York and Chicago

April 4, 2019


We may be one step closer to a viable challenger that can seriously take on the Duopoly for nationwide ground last mile delivery services. According to TJI Research, Amazon has moved beyond its seller to customer shipping trial in Los Angeles to include New York and Chicago. The service involves Amazon picking up packages directly from sellers’ warehouses every weekday and delivering them to Amazon customers seven days a week. It appears that Amazon Shipping is being used for Seller Fulfilled Prime shipments to customers who live within a two-day ground shipping radius from participating seller warehouses.  TJI Research notes that the service may also be in use for Prime items that take longer than the standard two days to ship, such as some large or bulky items. According to Spend Management Expert’s CEO, John Haber, “There are no surprises here.  Amazon continues to broaden their Logistics footprint and solutions on an hourly, daily, weekly basis.  By picking up these Seller Fulfilled packages, Amazon is going to improve their overall last mile delivery density on Amazon delivered packages.  The lack of density is one of the primary factors making profits on residential deliveries very challenging.  With the amount of data Amazon already has on buyers, they can strategically evaluate which Seller Fulfilled customers are the best mix for their Fulfilled customers.” Don’t think the Duopoly, FedEx and UPS, is taking all of this lying down. According to an earlier blog post, both companies are introducing new services and extending cut off times for next day and two day delivery service options. However, in January, Amazon hit back by cutting many fees that UPS and FedEx implement such as fuel surcharge, residential delivery and peak surcharges. According to Amazon’s marketing pitch to shippers, “Amazon will offer rates that are easier to understand than the pricing systems of UPS and FedEx.” If Amazon can successfully introduce a nationwide ground last mile delivery, the winner will be the customer who will enjoy more options for last mile delivery as well as at a more realistic price. Competition can’t get to the small package last mile delivery fast enough.

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Amazon Shipping Expands to New York and Chicago

April 4, 2019


We may be one step closer to a viable challenger that can seriously take on the Duopoly for nationwide ground last mile delivery services. According to TJI Research, Amazon has moved beyond its seller to customer shipping trial in Los Angeles to include New York and Chicago. The service involves Amazon picking up packages directly from sellers’ warehouses every weekday and delivering them to Amazon customers seven days a week. It appears that Amazon Shipping is being used for Seller Fulfilled Prime shipments to customers who live within a two-day ground shipping radius from participating seller warehouses.  TJI Research notes that the service may also be in use for Prime items that take longer than the standard two days to ship, such as some large or bulky items. According to Spend Management Expert’s CEO, John Haber, “There are no surprises here.  Amazon continues to broaden their Logistics footprint and solutions on an hourly, daily, weekly basis.  By picking up these Seller Fulfilled packages, Amazon is going to improve their overall last mile delivery density on Amazon delivered packages.  The lack of density is one of the primary factors making profits on residential deliveries very challenging.  With the amount of data Amazon already has on buyers, they can strategically evaluate which Seller Fulfilled customers are the best mix for their Fulfilled customers.” Don’t think the Duopoly, FedEx and UPS, is taking all of this lying down. According to an earlier blog post, both companies are introducing new services and extending cut off times for next day and two day delivery service options. However, in January, Amazon hit back by cutting many fees that UPS and FedEx implement such as fuel surcharge, residential delivery and peak surcharges. According to Amazon’s marketing pitch to shippers, “Amazon will offer rates that are easier to understand than the pricing systems of UPS and FedEx.” If Amazon can successfully introduce a nationwide ground last mile delivery, the winner will be the customer who will enjoy more options for last mile delivery as well as at a more realistic price. Competition can’t get to the small package last mile delivery fast enough.

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