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Wednesday, March 22, 2023

Amazon expands transport and logistics : planning to ships for other online retailers

Amazon is already one of the largest online mail order companies in the world. The US company is now competing with the large parcel shipping services by also making deliveries for external customers from now on.

• Amazon expands transport and logistics
• Amazon now also ships for external customers
• Only the state can set limits on expansion

Amazon is expanding its parcel service

As early as May it was reported that Amazon’s parcel service, Amazon Logistics , achieved good results in terms of quality, customer satisfaction and general impression. Not only is Amazon one of the world’s largest cargo airlines, the US company also competes with the major parcel shipping companies. It was only recently reported that the online retailer also wants to expand its network in Germany . Eight more logistics and distribution centers are to be built in this country by mid-2022, which will also create 3,000 new jobs.

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Now the company also ships for others

Amazon is now consolidating its position as a competitor for large parcel shipping services such as UPS or FedEx , because the online retailer now also wants to send deliveries for external customers. For this, Amazon already offers various shipping services in different regions of the world. Including the “Logistik-as-a-Service” program from Great Britain, which is expected to be introduced in the USA in the near future, according to CNBC. It can also be lucrative for external sellers to use Amazon’s algorithm to determine LTL trucks (less-than-load trucks) where free spaces can be used and to use them at reduced rates. Amazon benefits from this, as in this way money can be earned with otherwise unused or wasted space.

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Ecommerce consultant Chris McCabe worked at Amazon from 2006 to 2012, according to CNBC. Regarding Amazon’s expansion, he says: “They want to be a new kind of US postal service where everything goes everywhere, but also quickly.” The company started building its global transport network back in 2014. According to CNBC, Amazon now has over 400,000 drivers worldwide, 40,000 semi-trailers, 30,000 delivery vans and a fleet of more than 70 aircraft. Amazon has made around ten billion deliveries since it set up its own transport network. However, Dan Romanoff, who studies Amazon for Morningstar, assumes that Amazon does not want to become just any blanket carrier. Rather, the online retailer wants to choose exactly which routes to take, according to CNBC.

A never ending expansion?

Amazon has long been investing in expanding logistics and transport. But how long can this go on? If you ask former Amazon Air director and founder Scott Ruffin, the long-term answer is likely to be forever, Business Insider reports. The only limits that could be drawn by the government for Amazon, Ruffin said.

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