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Amazon’s Shipping Empire Is Challenging UPS and FedEx

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Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#41
What is interesting is that an American company is copying Chinese companies after pulling out of China because they could not compete with the local companies.

Both JD & Taobao/Tmall have their own large shipping empires in China. I suspect that was part of the reason they pulled out. They could not compete using 3rd part shipping companies.

Now they are doing the same thing in their home market.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#42

What is interesting is that an American company is copying Chinese companies after pulling out of China because they could not compete with the local companies. Both JD & Taobao/Tmall have their own large shipping empires in China. I suspect that was part of the reason they pulled out. They could not compete using 3rd part shipping companies. Now they are doing the same thing in their home market.

[deleted]

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#43

What is interesting is that an American company is copying Chinese companies after pulling out of China because they could not compete with the local companies. Both JD & Taobao/Tmall have their own large shipping empires in China. I suspect that was part of the reason they pulled out. They could not compete using 3rd part shipping companies. Now they are doing the same thing in their home market.

But Amazon started logistical services before some of those companies even existed. Seems like a creative re-write of history.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#44
Huh, missing from this article is the thousand or so DSP that service Amazon for shipping, basically contracting companies. A lot of Amazon shipping is actually Amazon corporate, but a huge chunk is a thousand smaller shops.

Turns out you can also contract with those shops as a private citizen to just ship random heavy stuff anywhere for super cheap. Because Amazon gives them enough volume, it's become cheaper for individuals to make their own shipping purchases too. Strange side effect.

I don't work for Amazon or anything, but my dad has used one of their DSP to ship some truly heavy stuff (250kg+).

Is all that in the "other"? Or did it get lumped in with Amazon's chunk? I want to know but the article doesn't help.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#45

What is interesting is that an American company is copying Chinese companies after pulling out of China because they could not compete with the local companies. Both JD & Taobao/Tmall have their own large shipping empires in China. I suspect that was part of the reason they pulled out. They could not compete using 3rd part shipping companies. Now they are doing the same thing in their home market.

JD has its deliver and warehouse and still use network of delivery companies and warehouse too. Tmall and Taobao use a network of delivery companies their own logistics arm Cainiao is not that big in warehousing and last mile delivery like SF Express or YTO.

In reality logistics is capital and labor intensive industry, Amazon will have trouble once the retail growth flatten but the cost structures are high. Amazon once unionized will have similar challenges and costs like UPS.

This is the reason FedEx never want to be unionized.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#46
post #22

Earlier quoted context omitted.

Maybe they see value also in being able to fully control the customer experience. Your trusted Amazon delivery guy could fill your fridge while you supervise him through Amazon branded devices.

There is no trusted Amazon delivery guy. It's independent contractors mostly.

False, there are lots of last-mile Amazon delivery guys -- I live by a distribution center that has literally hundreds of Amazon-branded last-mile vans that deliver straight to my house.

The program you're thinking of is likely "Amazon Flex" which is just part of their last-mile delivery system and uses independent contractors.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#47
Both UPS and FedEx deliveries arrive at my front door in good condition, the delivery drivers bag the packages up if I'm not home and it looks like rain.

USPS consistently rings my doorbell and makes sure packages are handed to me rather than left outside.

Amazon delivered packages have been: thrown from the street; arrive crushed, punctured, or otherwise damaged; left in the driveway; left in the neighbors yard; never ring the doorbell, unless it's after dark, and then they ring and run.

Amazon's last mile service is a complete shit show, impressively worse than the random cut rate last mile delivery services they used when they were trying to force UPS and FedEx to lower prices.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#48
post #46
post #22

Earlier quoted context omitted.

There is no trusted Amazon delivery guy. It's independent contractors mostly.

False, there are lots of last-mile Amazon delivery guys -- I live by a distribution center that has literally hundreds of Amazon-branded last-mile vans that deliver straight to my house. The program you're thinking of is likely "Amazon Flex" which is just part of their last-mile delivery system and uses independent contractors.

Those aren't necessarily employees of Amazon, you can sign up to be a shipper and buy the vans. https://logistics.amazon.com/marketing/opportunity

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#49
I suppose that Amazon, at least the retail sales part of it, is essentially a shipping company. No surprise that it would build out over time, plus you'd be silly to trust them as a single huge customer.

One sentence in that article that I like was mentioning Amazon purchasing of dead malls. I had to thump myself in the head..'of course'. I've always wondered what would happen to those facilities and mini storage and fulfillment centers are good ideas.

Maybe we could ship Amazon direct to mini storage and cut out the middle man. Making 'too much stuff' more efficient seems like a genuine plan.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#50

Earlier quoted context omitted.

"Transportation By Amazon" (TBA) has been a concept at Amazon since around 2010 or so. Originally the concept was that Amazon would accept shipments from business customers and inject those shipments into Amazon's sorting and shipping network using the rates negiotated with various carriers. Since most of Amazon's negiotated rates with carriers are lower than what carriers offer to consumers directly, customers get l…

Given how often I've had packages thrown haphazardly by Amazon drivers, I will gladly pay extra to have USPS handle my packages with slightly more care. It's an interesting idea, but their drivers are destroying their image before they've entered the market.

Additionally, I have yet to ever have a driver ring the doorbell. They throw it at the house, mark it as complete, and trust that I’ll stumble across it later.
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