Amazon Considering Starting Own Express Airline

TUT

Well-Known Member
Lol held hostage? Amazon gets the cheapest rates of anyone. The profit margin on their shipments is non existent. And it'll cost them more to ship their own stuff than the prices we give them.

Right. Amazon is trying to make a world of even cheaper bottom basement pricing. It doesn't mean what they are trying should just work. The way I want it, I want free product and free shipping, they only have half the equation correct in their "holy grail" plan for the consumer, oh and in 15 minutes or less to, same day? Pfff. Where's this company at? Point is it is business, you do what you feel you can, plan and play it out.
 

Brownslave688

You want a toe? I can get you a toe.
Right. Amazon is trying to make a world of even cheaper bottom basement pricing. It doesn't mean what they are trying should just work. The way I want it, I want free product and free shipping, they only have half the equation correct in their "holy grail" plan for the consumer, oh and in 15 minutes or less to, same day? Pfff. Where's this company at? Point is it is business, you do what you feel you can, plan and play it out.
Other than some layoffs I'd be happy to see them leave.


I just don't see how if ups and fedex with their massive amount of volume and cost advantages can't turn a profit on their packages how in the world do they expect to.
 

Bounty

Well-Known Member
Other than some layoffs I'd be happy to see them leave.


I just don't see how if ups and fedex with their massive amount of volume and cost advantages can't turn a profit on their packages how in the world do they expect to.
They have tons of money. Maybe taking share from the big two eventually. However I do agree, major capital to make it work and they will drive wages down more than x, if that's possible.
 

Brownslave688

You want a toe? I can get you a toe.
They have tons of money. Maybe taking share from the big two eventually. However I do agree, major capital to make it work and they will drive wages down more than x, if that's possible.
They will have trouble staffing at below ground wages. Hell ground is having trouble in some areas.
 

Gone fishin

Well-Known Member
Other retailers are starting to price to compare to amazons and will take business from them. They are not the only game in town. That would really hurt them.
 

dezguy

Well-Known Member
Yeah, I really never got the fascination with Amazon, other than not having to leave your house. I never find their prices any cheaper than brick and mortar stores here except on very few occasions.

Besides, if I want to buy something, I want the product when I pay for it. Not I give you money and you ship it to me and I get it a week later.
 

TUT

Well-Known Member
Yeah, I really never got the fascination with Amazon, other than not having to leave your house. I never find their prices any cheaper than brick and mortar stores here except on very few occasions.

A. They have a larger stock than a B&M.
B. Vs a true B&M and not a B&M's website, they have better prices on many things.
C. If in no hurry, click, click, 2 days later product. Convenient.

It's very popular for a real reason, not some omg everyone's blind, I can see why can't they?

Now can others compete? Well they will have to break habits and is there really room to be more competitive to the point people are willing to break habits? Then they have value adds as well with digital content. Good luck. Amazon only goes down any time soon is if they really can't afford it and people start demanding better results.
 

Brownslave688

You want a toe? I can get you a toe.
A. They have a larger stock than a B&M.
B. Vs a true B&M and not a B&M's website, they have better prices on many things.
C. If in no hurry, click, click, 2 days later product. Convenient.

It's very popular for a real reason, not some omg everyone's blind, I can see why can't they?

Now can others compete? Well they will have to break habits and is there really room to be more competitive to the point people are willing to break habits? Then they have value adds as well with digital content. Good luck. Amazon only goes down any time soon is if they really can't afford it and people start demanding better results.
Amazon goes down as soon as investors demand profits.
 

vantexan

Well-Known Member
Lol held hostage? Amazon gets the cheapest rates of anyone. The profit margin on their shipments is non existent. And it'll cost them more to ship their own stuff than the prices we give them.
Absolutely, but they'd be held hostage if UPS jacked up rates to make up lost revenue to FedEx Ground. UPS has those nasty contracts with it's drivers, and they have to be paid. What happens when Ground takes enough away to eliminate UPS profits? Either your drivers will have to make concessions in future negotiations or UPS will have to raise rates(which will lead to more losses to Ground).
 

vantexan

Well-Known Member
Yeah, I really never got the fascination with Amazon, other than not having to leave your house. I never find their prices any cheaper than brick and mortar stores here except on very few occasions.

Besides, if I want to buy something, I want the product when I pay for it. Not I give you money and you ship it to me and I get it a week later.

I love Amazon. I can shop for books at midnight and get the Kindle version immediately. I can send gift cards by email immediately on birthdays. A local store may not have what I want and would have to order it. I can find what I want on Amazon, usually with dozens or more reviews that help me decide. I can live in a remote town and still get what I want. I've delivered big bags of dog food to rural customers who find it cheaper to have it sent from Amazon than to drive 80 miles roundtrip.
 

Brownslave688

You want a toe? I can get you a toe.
Absolutely, but they'd be held hostage if UPS jacked up rates to make up lost revenue to FedEx Ground. UPS has those nasty contracts with it's drivers, and they have to be paid. What happens when Ground takes enough away to eliminate UPS profits? Either your drivers will have to make concessions in future negotiations or UPS will have to raise rates(which will lead to more losses to Ground).
Our rates are virtually the same. Ups just goes to their drivers. Fred pockets fedex.


And it won't be Amazon volume bringing us down. Amazon accounts for less than 1% of our profits.
 

dezguy

Well-Known Member
A. They have a larger stock than a B&M.
B. Vs a true B&M and not a B&M's website, they have better prices on many things.
C. If in no hurry, click, click, 2 days later product. Convenient.

It's very popular for a real reason, not some omg everyone's blind, I can see why can't they?

Now can others compete? Well they will have to break habits and is there really room to be more competitive to the point people are willing to break habits? Then they have value adds as well with digital content. Good luck. Amazon only goes down any time soon is if they really can't afford it and people start demanding better results.

A.) They are stocking for nationwide customers. Of course they're going to have more stock but really, there is very rarely a time when a B&M store in my city does not have what I want. In that case, I wait the 2 days, much like I would with Amazon and it comes in for me to pick up.

B.) Many things Amazon stocks that are a better price than B&M can be found on other sites for less than Amazon offers. Prime example: HDMI, USB, ect. I can usually get all of those on monoprice and even with me paying the exchange rate and shipping, the price comes in lower than I would have paid on Amazon.

C.) I noted that the one reason I see the appeal is you don't have to leave your house. If one has no problem handing over their money and waiting, God bless. I much rather have product in hand when handing over money. The few times I have used Amazon, delivery seems like a crap shoot. You may get one item in two days, other items might take two months.

There are few times when I am blown away by Amazon's prices. If Amazon has something on sale, odds are I can head down to the local Best Buy, ect and get it for the same price, maybe a few cents more. I'm really not worried about spending $.30 extra and I can have the product that day.
 

vantexan

Well-Known Member
Our rates are virtually the same. Ups just goes to their drivers. Fred pockets fedex.


And it won't be Amazon volume bringing us down. Amazon accounts for less than 1% of our profits.
I've seen the pricing and unless you've reduced your rates to compete then Ground is cheaper. It's not about Amazon bringing you down. Amazon just sees that it has enough volume to make it worth their while to start transporting it themselves, figuring they can control costs better that way. They can't stop UPS and others from raising rates and if they do Amazon will suffer.
 

bacha29

Well-Known Member
CHeck out today's CNBC interview with the head of UPS. Man says he's "comfortable" with UPS relationship with Amazon. It's all part of the head games known as" corporate strategy." This may become entertaining after a while.
 

MrFedEx

Engorged Member
Yeah, I really never got the fascination with Amazon, other than not having to leave your house. I never find their prices any cheaper than brick and mortar stores here except on very few occasions.

Besides, if I want to buy something, I want the product when I pay for it. Not I give you money and you ship it to me and I get it a week later.

It's a generational thing. Younger folks expect to be able to order their latest gadget or phone on-line and to never have to move off the couch. They also expect it to be delivered quickly. This is the new consumer.
 

Cactus

Just telling it like it is
It's a generational thing. Younger folks expect to be able to order their latest gadget or phone on-line and to never have to move off the couch. They also expect it to be delivered quickly. This is the new consumer.
Then they're gonna be real disappointed by X's service regardless of opco. Far too much late freight and poor reliability these days.
 

bacha29

Well-Known Member
Once again they went out and oversold the service. This year it rose up and bit them in the derriere. Do you think they might finally learn fron this fiasco. Of course not?. They'll simply pass the blame down the line. Unfortunately however at Ground the guy at the end of the line is the contractor.
 

It will be fine

Well-Known Member
Once again they went out and oversold the service. This year it rose up and bit them in the derriere. Do you think they might finally learn fron this fiasco. Of course not?. They'll simply pass the blame down the line. Unfortunately however at Ground the guy at the end of the line is the contractor.
Good thing none of us care. They can blame contractors all they want to. My service area was clean as a whistle and I didn't hire a single extra driver.
 

bacha29

Well-Known Member
With an ego as big as yours IBWF, who would want to work for you? Furthermore you may not have had to hire extra help but you didn't say the company didn't have to bring in temps to help you out.
 
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