Freight Battle: Amazon Resumes Freight Services, Competes with FedEx and UPS
Amazon has relaunched Amazon Shipping last Friday. This service allows sellers to ship Amazon orders as well as products sold on other websites.
According to Dolphin Research APP, Amazon (AMZN.US) has resumed its self-operated freight service, which was temporarily suspended at the beginning of the pandemic. This move may increase competition pressure on FedEx (FDX.US) and United Parcel Service (UPS.US).
The tech giant, headquartered in Seattle, confirmed that Amazon Shipping was relaunched last Friday. This service allows sellers to ship Amazon orders as well as products sold on other websites. A spokesperson for Amazon confirmed that only merchants selling goods on Amazon are eligible for this service.
Amazon has already provided delivery services to merchants using its warehousing and distribution services. This new service allows merchants to use the company's delivery services without storing the products in Amazon's warehouses. Currently, Amazon Shipping only operates domestic freight services in the United States.
Olivia Connors, spokesperson for Amazon, said, "We have been working hard to develop new innovative ways to support Amazon's selling partners, and Amazon Shipping is another option to deliver packages quickly and cost-effectively to customers."
"We have been offering this service for some time and have received positive feedback, so now we are making it available to more selling partners."
It is worth noting that Amazon's package delivery speed has been improving. The company stated last month that in the second quarter of this year, over half of Prime orders in 60 metropolitan areas in the United States were delivered on the same day or next day. Amazon also recently announced plans to double the number of same-day delivery locations in the coming years.