It’s important that Amazon delivers as well as other online retailers.
Amazon relied heavily on FedEx and UPS until recently. But they are now able to cover a lot more ground by making their deliveries themselves without the need for any other delivery services.
However, Amazon’s high demand and all the orders mean that they cannot fulfill all their deliveries on their own.
Do UPS Ship Amazon Packages
Although UPS still handles a large number of Amazon deliveries, they are slowly but surely moving towards more delivery. While Amazon still relies on third party delivery services such as UPS, they seem to want to change the situation so they can benefit logistically and other aspects like expenses and control over packages.
According to Amazon CFO Brian Olsavsky
“We see that the ability to control the entire flow of products from warehouse to end customer is very beneficial. Previously, we would have to hand off large batches of orders to third parties once per day. It’s now a continuous flow process with orders constantly leaving our warehouses five to six times per day. They then go through middle mile and finally to final delivery through either our AMZL drivers [contracted delivery] partners.”
Amazon may eventually be able to control 100% of all their deliveries. This will undoubtedly make them more efficient.
Continue reading to find out more about Amazon’s delivery services and details regarding third-party services.
What percentage of Amazon packages are delivered by UPS?
UPS delivered 24% percent of all packages in 2020, and that number is only decreasing as Amazon continues to expand their delivery service.
Amazon is growing rapidly and they are now hiring more independent contractors and drivers. They also have a Flex program that is growing.
Amazon has complete control over the shipping process, so there is less room for errors and outsourcing.
FedEx Left Amazon: Why?
FedEx decided to not renew the contract in 2019, citing Amazon’s growing interest in being a competitor in delivery services and not receiving as many revenue.
They did return partially in 2020, however. This means that they no longer deliver every package, but third-party sellers can offer this service to customers.
Who delivers Amazon packages?
Amazon is a large company that has high demands from customers around the globe. It makes sense therefore to have some assistance with their deliveries.
These are the delivery companies that Amazon partners with to get you your package.
USPS (U.S. Postal Service
USPS is an American postal service that delivers mail to large and small businesses.
Amazon is one of the biggest players. The USPS is an integral part of Amazon’s growth.
USPS delivers packages to Etsy and eBay, in addition to Amazon. This puts them in a strong position against their competitors.
They also deliver the most Amazon packages from the three big three.
UPS (United Parcel Service
UPS, a multi-national shipping company, has been around since 1904. It has worked with Amazon for quite some while now as one of its most reliable third party delivery services.
Amazon
Amazon now handles a large number of its deliveries, as we have already stated. Amazon has been working with FedEx and UPS for many years. However, recent reports indicate that Amazon is now almost at the same level as UPS in shipping.
This has made Amazon the number one package delivery company. Amazon delivered 4.2 billion packages in 2020, a remarkable increase from the 1.9 million in 2019.
Although some of the success can be attributed to high demand during times of pandemics, it is clear that there was a lot of hard work involved.
Let’s take a look at their origins as deliverers to get a better idea of their success.
Amazon launched their shipping and warehouse network in 2014. They delivered approximately 20 million packages that year, which is significantly less than the 4.2 Billion from 2020.
Learn more about Amazon These posts will help you learn more about Amazon.
Conclusion…
Although UPS still handles a small portion of Amazon’s deliveries, the online retailer is gradually making their way to taking over all deliveries. This will eliminate the need for third-party services like FedEx or UPS.
We will have to wait to see if Amazon can fulfill their dreams of being able to deliver 100% of all packages to every customer.
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