What's the latest on Amazon?

bbsam

Moderator
Staff member
Nothing wrong with competition.
It will make us stronger
You do know this is not the Union forum, @Lead Belly ?
Is UPS stronger since Fedex bought RPS?

Very possible. But what does "stronger" mean and in what ways do you see further competition from Amazon making UPS stronger? Force more budgetary constraints? Drive the need for further innovation?
 

Catatonic

Nine Lives
Is UPS stronger since Fedex bought RPS?

Very possible. But what does "stronger" mean and in what ways do you see further competition from Amazon making UPS stronger? Force more budgetary constraints? Drive the need for further innovation?
yep
 

Scuba Steve

Well-Known Member
UPS would diversify into what? Retail? Some have suggested that.


The UPS Store- Retail (franchised)
UPS Supply Chain Solutions
UPS Capital-financial
UPS Airlines
UPS Express Critical
UPS Freight
UPS Logistics
UPS Mail Innovations
UPS Professional Solutions
UPS i-parcel

Coyote, UPS SCS and UPS Logistics and any other division that acts as a broker-forwarder will use competitors and other carriers if they are less expensive and meets service. I remember they would use China Airlines to bring in full 747's for Dell because it was less than using UPS Airlines. Just like using USPS for last mile ground.
 

UpstateNYUPSer(Ret)

Well-Known Member
Could you all see a ups/FedEx merge if Amazon gets off the ground with this delivery service?

While this would never be a reality due to lack of competition, I would like to see the two get together and jointly agree to discontinue any discounts that Amazon receives if they do indeed set up their own delivery network.
 

GillEagan

I always look 10 years younger than I am.
I bought my son a 6' HDMI for $2.18 with free shipping. Please tell me where in the $2.18 they were able to hide the shipping costs.

Usually when I buy cheap items like that, it is shipped through the post office as it's the cheapest shipping method. Here's my take on what they are probably doing. They ship via the cheapest shipping method possible. Then they take the shipping charges and pad some of the purchasing price with it. Then they take the rest of the shipping and are probably padding it into the purchase price of some of their more expensive items.

The cable more then likely costs $.20.. And the shipping discount was probably $.36.. So they made 600% profit more then likely..

That could be correct. It doesn't cost much to mass produce a cable that's made in China and then ship it here via China Post that the Chinese government is subsidizing. Then the seller marks it up significantly for a profit. That's how retail works more or less.

A couple of weeks ago I ordered a little item from Amazon. With tax it was $2.15 with free shipping. Their actual cost for the item probably wasn't much more than a dollar but they still lost money overall on shipping.

Those little sales are pretty much loss leaders to keep you shopping at Amazon.

That too is probably a part of the whole answer.
 

Orion inc.

I like turtles

They've been doing this for years. If brown cafe noticed it, I'm sure the many analysts at ups in Atlanta have too. Ups is the largest shipping company in the world. They're not going to let Amazon come along and destroy their core business.

All ups would have to do, and fedex would follow suit, is tell Amazon their rates are increasing to retail rates. The USPS wouldn't be able to handle the majority volume and neither would Amazon and their subcontractor services.

I'm sure corporate has a plan in place. They may do some questionable things but they aren't going to let a 100 plus year company be destroyed by Amazon.
 

Ms.PacMan

Well-Known Member
They've been doing this for years. If brown cafe noticed it, I'm sure the many analysts at ups in Atlanta have too. Ups is the largest shipping company in the world. They're not going to let Amazon come along and destroy their core business.

All ups would have to do, and fedex would follow suit, is tell Amazon their rates are increasing to retail rates. The USPS wouldn't be able to handle the majority volume and neither would Amazon and their subcontractor services.

I'm sure corporate has a plan in place. They may do some questionable things but they aren't going to let a 100 plus year company be destroyed by Amazon.

IDK - UPS seems so scared now of making a bad business decision that they can't make any good ones.
 
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