Amazon Experiments With Its Own Shipping Service

Amazon is likely FedEx and UPS' largest customer, due to the number of items that customers purchase from Amazon on a daily basis. But it is also something that Amazon may be looking to get rid of. Not so much to cut costs, but actually to allow for faster shipping of even more items and prevent overcrowding in its existing warehouses. Amazon is now experimenting with its own shipping service on the west coast, before moving to expand it nationwide. One of the big perks for Amazon with this shipping service is the fact that it would be able to ship from its merchants warehouses, instead of needing to have those products in its own warehouses, for free two-day shipping, which it promises to Prime members.

This isn't the first time that Amazon has experimented with other ways of shipping products to its customers quickly. Recently, Amazon made it possible for merchants that ship items themselves, to still be listed under Prime for the quick two-day shipping. However these merchants had to show Amazon that it was capable of shipping products within those two days. Amazon has also started experimenting with drones for delivery, among other things. Amazon ships more orders than just about any other retailer, so it's a big business for Amazon, and if it is the one shipping these products, it is easier for Amazon to call the shots on how soon these products can be at your door.

When this news first came out, it brought attention to UPS, with people wondering if UPS would be worried about Amazon competing with them. And UPS stated that Amazon is a valued UPS customer, which is definitely true. It is estimated that Amazon accounts for around 5 to 10% of UPS' revenue yearly. With FedEx, that number is a bit lower, around 3%. And this is because Amazon uses UPS in most areas for Prime shipping. This is all part of Amazon looking for new ways to get your orders to you even faster. Amazon does have Prime Now available in some markets, which will get you, your order within a few hours, but that's only in a few markets still.

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Alexander Maxham

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Alex has written for Androidheadlines since 2012 as Editor of the site and traveled the World to many of the biggest Smartphone and Technology events. Alex has a background in Technology and IT and Deep Passion for Everything Android and Google. His specialties lay in Smartphones of all budgets, Accessories, Home Automation and more. Contact him at [email protected]
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