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Sun Aug 20 2023 15:31:21

Would You Rely on Amazon as a Shipping Carrier?

By: Ina Steiner

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Amazon is offering sellers an alternative to UPS, FedEx, and USPS for their off-Amazon orders, according to news reports last week. "Amazon relaunches shipping service that competes with FedEx and UPS," was the headline from ABC News on Friday.

The logistics service is different from Amazon's other services like FBA (Fulfillment by Amazon) and MCF (Multichannel Fulfillment), where you store your goods in Amazon warehouses and it fulfills them, whether it's an Amazon order or an order from a rival marketplace or your own website. With the newly expanding service, Amazon picks up your packages at your location and delivers them to the customer.

From what we learned from a source in 2019, it was a service for merchants who had warehouses. And it makes sense that Amazon might not want to pick up low-volume orders from residential addresses.

Note that Amazon could still use shipping carriers in delivering some of the packages - just as it does with its own orders today (it doesn't say on the Amazon Shipping website). But it is not a stretch to think Amazon would cherry pick the most profitable business - and that could mean UPS, FedEx, and USPS are left with the less profitable business and might feel pressured to raise costs to hold their margins steady.

The very fact that Amazon put the service on hold due to the pandemic, according to the recent media reports, means sellers who rely on Amazon Shipping could be vulnerable to the whims of the company. 

Sellers may remember during the early days of COVID-19, Amazon restricted sellers' use of FBA, as we reported at the time

"On March 17 (2020), Amazon stopped accepting sellers' inbound shipments to its fulfillment centers for products other than high-demand goods such as household staples and medical supplies. Many sellers rely on Fulfillment by Amazon (FBA) for their livelihood."

That doesn't mean sellers shouldn't use Amazon Shipping services, but they should go into it with eyes wide open. What do you think? And which carrier do you rely on for which needs?



Comments (10) | Permalink

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by: Lisa This user has validated their user name.

Sun Aug 20 17:53:04 2023

well, what is their price point? what is their delivery time frame? do they have features or benefits usps or ups doesn't offer?

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by: RL15 This user has validated their user name.

Sun Aug 20 18:01:56 2023

depends on price / delivery time frame

but nothing to detroit, amazon delivery trucks are having a big issue being carjacked

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by: GetAGrip This user has validated their user name.

Mon Aug 21 07:12:49 2023

Bought two dvds one from amazon and the other from greedbay. Amazon delivered the next morning. Four days after purchase the seller on greedbay still hasn't mailed the item. As a seller I mail hundreds of packages a week. I don't care what the post office says about delivery day its always 1- 6 days later including packages that are sent to an address in my small town. My answer is yes as the cost will like always be paid for by the buyer.

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by: glasspackaging This user has validated their user name.

Mon Aug 21 07:36:45 2023

For local area perhaps…. But if it is going Amazon warehouse to warehouse as their transfer hubs… no way… they mishandle and have issues with FBA (not huge, but would you want to be one?) ..
We have great home delivery from them… we also have 3 warehouses within an hour … would NEVER trust it outside our local area.

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by: AddyUp This user has validated their user name.

Mon Aug 21 07:42:27 2023

Over this side of the pond Amazon are the couriers who just toss the parcel on your doorstep and drive off. In some areas when there has been an Amazon delivery, people go out and check their cars. After being on the receiving end of an Amazon hit and run driver I can understand that.

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by: vintagejewelryrepair This user has validated their user name.

Mon Aug 21 10:37:17 2023

At one time I would have said yes without hesitation.  However, over the course of the last year or two, even, Amazon's shipping has gotten steadily worse.  Things that are purchased and say they will arrive by "x" date, are constantly moved back to the next day and then the day after that.  I may get an email at 9 PM saying my order will arrive by 10 PM the following day.  Then I will get another one around 9 PM that following day and it says the same thing!  Things are lost, shipping is canceled for no reason after the item has been in transit for 2 days already, and Prime 2-day shipping means absolutely nothing anymore.  I'm not sure what happened to Amazon, but it's not what it used to be.  Having said that, it's never a bad thing to add competition to USPS, UPS, and Fedex.

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by: spooky This user has validated their user name.

Mon Aug 21 10:53:11 2023

on a side note: How does UPS possible compete when they pay a Teamsters wage (quite high payroll) and Fed-Ex pays a fraction of that in non-union wages? I assume Amazon pays little in comparison to UPS

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by: Disgruntled_Seller This user has validated their user name.

Mon Aug 21 11:01:49 2023

Amazon is consistently efficient until something happens, then it is a bit harder to work through. And it is a little too early to tell, but one cannot associate their performance based on their own warehouse fulfillment vs just a parcel transit operation. The last delivery segment and how it is handled and by whom will be important. Amazon is already in the business of competing with forces such as ShippingEasy, Shipstation, eBay's shipping, etc with their Veeqo activity. We have used it since startup and it performs fairly flawlessly across eBay, Etsy, Amazon, Shopify and others and does inventory sync as well although it is still a little rough around the edges and needs some refinement in certain areas. Since Amazon, comparing to USPS anyway, is a business oriented model whereas USPS is a do as little work as possible gov operation I would suspect a Amazon model can and will create quite a disruption to USPS and a few others. I would try it as long as it was accepted by the sales venues as a legitimate delivery venue like the other carriers.

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by: bd greatbuys This user has validated their user name.

Mon Aug 21 15:13:15 2023

in 1 year from succeeding that way- amazon will force all 3ps to do so - just got more control to terrorizing 3ps

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by: Whatever This user has validated their user name.

Sun Aug 27 11:51:17 2023

I don't rely on Amazon for anything selling or buying -  



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