In a recent abstract (“Amazon’s Pitch to Woo Shippers: Fewer Fees than FedEx, UPS”), we described the retailer’s entry into logistics operations, in its effort to take over the delivery of the products it sells to customers. Recent reports add that these operations continue to expand, making the shipping arm an increasingly prominent reality and consideration for other logistics providers. In particular, Amazon paid visits to some of its sellers located in Los Angeles, New York, and Chicago with offers to allow them to leverage its shipping capacities. Rather than sending their goods to a fulfillment center, by using FedEx or UPS, these sellers could sign on with Amazon to have the orders that come through its site picked up from their own facilities and shipped directly to customers. The option offers greater efficiency, as well as more confidence that the items will arrive on time, because both Amazon and the seller actively seek to provide this benefit to buyers. Furthermore, the option promises a potential means to increase the personalization of their offers. For example, if a seller knows that a particular shipment is going straight to a specific customer, rather than being held in a fulfillment center, it might add a personalized note or promotion that could enhance that shopper’s loyalty to the seller itself. The expansion of Amazon’s logistics operations thus appears likely to persist, and we will keep watching to see where it goes next.

Source: Suman Bhattacharyya, Digiday, April 8, 2019