Amazon has caused enormous visible changes across the world during its time on the planet, but the most intriguing ones are what’s unfolded behind the scenes. When it comes to logistics, the science of getting stuff from point A to point B in the fastest, most efficient way possible, Amazon has changed how we ship in ways only a package company can really appreciate. So what’ll happen once they start shipping packages themselves? We’re about to find out.
After years of rumors, and not a few wacky stories about drones, it looks like Amazon is going to officially take on FedEx and UPS in order to ship more products by two-day delivery, according to Bloomberg:
Amazon will oversee pickup of packages from warehouses of third-party merchants selling goods on Amazon.com and their delivery to customers’ homes, the people said — work that is now often handled by UPS and FedEx. Amazon could still use these couriers for delivery, but the company will decide how a package is sent instead of leaving it up to the seller.
That plan has a few obstacles. First of all, Amazon’s third-party sellers have become furious at the site over implementing unilateral policies, and this appears to be yet another intrusion from their perspective. Not only do they have to deal with Amazon to reach customers, this service would appear to allow Amazon to dictate order fulfillment as well. That’s unlikely to go over well, even if Amazon manages to keep costs low. Customers may see their favorite third-party sellers jumping ship rather than be consumed by degrees by Amazon. Secondly, one doubts FedEx and UPS are going to welcome a competitor with open arms and smiles, especially since this means they’re losing business.
Of course, from a customer perspective, this means cheaper shipping and faster delivery, as well as the expansion of services like Amazon Locker, so the majority of Amazon shoppers may not care. But the idea of the company having so much control not just over what we buy but how it gets there may make some consumers queasy. And if Amazon starts delivering other packages, and a shipping war breaks out, all bets are likely off in the industry.
(via Mashable)
