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Can Amazon Beat UPS & FedEx in Last-Mile Shipping?
When it comes to shipping, UPS and FedEx (along with the U.S. Postal Service) are the names most bandied about. However, with the increase in e-commerce, a battle has been waging over last-mile shipping — moving goods from a transportation hub to the consumer’s home. Business Insider noted that “as online sales surge further, volumes will outstrip legacy shippers’ capacities .”
High-volume shipments are already straining shippers’ legacy systems. This, in turn, is upsetting many big-name retailers, such as Macy’s and Walmart.
Enter Amazon.
Business Insider, for one, believes that the e-commerce giant could be a powerful entrant into the shipping category, thanks to its logistics infrastructure, ranging from warehouses and distribution centers, to air transport and delivery trucks. Additionally, “as the leading online retailer in the U.S., (Amazon) has a wealth of data on consumers that it can use to craft a personalized delivery experience that’s superior to UPS and FedEx’s offerings,” Business Insider said.
But, Amazon needs to act quickly, as UPS and FedEx are beefing up their logistics networks in anticipation of continued e-commerce growth and a surge in parcel volume. Noted Business Insider analysts: “The longer the Seattle-based e-tailer delays the launch of a delivery service, the more it runs the risk that these legacy players will be able to defend their territory.”
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