Amazon Is Preparing for the Worst With USPS

It’s about more than just responding to USPS

Developing its own last-mile fulfillment service gives Amazon a couple of big opportunities.

First of all, it could enable Amazon to provide faster and more customized fulfillment. If it controls every step in the process of getting orders from its warehouses to customers’ doors, it can ensure packages are delivered faster and at times when customers are able to accept delivery. The latter may be increasingly valuable as competitors move toward faster shippingoptions for their customers in an effort to compete with Amazon Prime. The former may be able to reduce overall shipping costs, as Amazon can offset its reliance on UPS and FedEx for guaranteed two-day Prime shipping.

If Amazon continues to fill out a last-mile delivery network, it could eventually use its existing infrastructure and scale to offer the service to other businesses. Amazon took that approach with its cloud computing business, where it leveraged its own cloud infrastructure and expertise to offer a product to other enterprises. That’s now one of its most profitable businesses. It also did the same thing in its retail business as it built out its warehouse footprint and improved its technology to offer fulfillment services for other merchants. Now it could offer competitive last-mile delivery services.

Amazon is flexing its muscle with USPS. If the latter insists on raising rates, it could have serious consequences that ultimately lead not only to losing Amazon’s valuable business, but to creating an entirely new competitor for the part of its business that produces real profit.

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Clayton Norris

How is Amazon’s business ‘valuable’ to USPS when the Postal Service subsidizes Amazon’s shipping costs? USPS isn’t raising rates on Amazon, they are raising rates on the rest of their customers. It is well past time for President Trump to take control of this situation!

Skip

Goodbye Amazon…it can’t come fast enough…

Tess

Good!Amazon needs to deliver their own shit and stop taking advantage of the USPS.

Pikngrn

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#1 Believe me when I say there are plenty of packages to go around to be delivered &
#2 Good luck finding enough people with a good work ethic that won’t steal you blind &
#3 Do you really think that the government will let you put the hurting on USPS?
#4 Seriously , believe me when I tell you that there are plenty of packages to go around!
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lilly

I feel like we are doing two in one business aniway( Package business and Mail business)for just one salary.

Tals

Amazon carriers are the WORST. They have no idea where a lot of address are, the majority of the carriers will go up to the USPS carriers and ask them for direction to where they have to go. The BEST part to that is, the Usps carriers will tell them to go the opposite way of where they have to go 🙂 And a bunch of them have been caught launching the packages up to the house. As for Walmart, the post office is doing a pilot run in my area to where if people order items from Walmart it… Read more »