Amazon to stop deliver service...

fatboy33

Well-Known Member
What does this mean going forward? The article said Amazon was have problems getting packages to customers in 1 to 2 days. I wondering if express will see any increase in volume or will this all be diverted to ground? Also, for the folks who purchased Amazon delivery trucks, route etc, will most of them be left holding the bag?

Amazon to suspend delivery service competing with UPS, FedEx
 

SmithBarney

Well-Known Member
Amazon Shipping is available in a handful of U.S. cities, including Los Angeles, and handles non-Amazon and Amazon marketplace packages.

Amazon offers delivery between shippers and receivers that have nothing do to with the amazon.com shopping service, so yea you might see a bump, but probably not much of anything.

On a side note, many sellers who use Amazon as a fulfillment center for their goods, are now having to fulfill their own orders. We have one that has been shipping 1000+ pieces a day since amazon stopped fulfilling their orders.
 

59 Dano

I just want to make friends!
Funny how only a few months ago the debate here was how Amazon could/would gobble up FedEx's business (if not the company itself) because AMAZON OMG JEFF BEZOS HE'S SO RICH AND OMG THEY SELL CHEAP DENTAL FLOSS AND MAKE MONEY ZOMG and now they're going to shut down the service because they can't even make it work when they set it up to maximize efficiency by limiting it to dense markets.
 

Working4the1%

Well-Known Member
Funny how only a few months ago the debate here was how Amazon could/would gobble up FedEx's business (if not the company itself) because AMAZON OMG JEFF BEZOS HE'S SO RICH AND OMG THEY SELL CHEAP DENTAL FLOSS AND MAKE MONEY ZOMG and now they're going to shut down the service because they can't even make it work when they set it up to maximize efficiency by limiting it to dense markets.
Imagine DANO if every business had to only ship FEDEX..u think we could handle it ??
 

dmac1

Well-Known Member
Funny how only a few months ago the debate here was how Amazon could/would gobble up FedEx's business (if not the company itself) because AMAZON OMG JEFF BEZOS HE'S SO RICH AND OMG THEY SELL CHEAP DENTAL FLOSS AND MAKE MONEY ZOMG and now they're going to shut down the service because they can't even make it work when they set it up to maximize efficiency by limiting it to dense markets.
Except that they are turning away outside business because they are so busy. Once the world gets back to normal and people tire of paying extra for canned tomatoes, Amazon will go right back to accepting outside business. With automated shipping software shippers use, shippers don't really have a favorite shipper. If the software says UPS is 30 cents cheaper for that weight going to that zip code, they will ship UPS, and if Amazon is accepting packages again, and is 30 cents cheaper than UPS, they will go right back to Amazon. Having the ability to accept or deny packages based on their own internal volume will keep volume at steady levels without peaks and valleys like fedex ground has throughout the year.
 

59 Dano

I just want to make friends!
Except that they are turning away outside business because they are so busy. Once the world gets back to normal and people tire of paying extra for canned tomatoes, Amazon will go right back to accepting outside business. With automated shipping software shippers use, shippers don't really have a favorite shipper. If the software says UPS is 30 cents cheaper for that weight going to that zip code, they will ship UPS, and if Amazon is accepting packages again, and is 30 cents cheaper than UPS, they will go right back to Amazon. Having the ability to accept or deny packages based on their own internal volume will keep volume at steady levels without peaks and valleys like fedex ground has throughout the year.
Maybe you missed it, but they are killing the service in 2 months. Not now, but 2 months from now. They are keeping outside business until then.

The service is only available in a few select markets (read: areas where it is most efficient) and it's not working well. You can't just waltz in to this line of business and expect to be a viable competitor. When you're paying worse than Ground and still losing money, well, time to stop.
 

bacha29

Well-Known Member
Maybe you missed it, but they are killing the service in 2 months. Not now, but 2 months from now. They are keeping outside business until then.

The service is only available in a few select markets (read: areas where it is most efficient) and it's not working well. You can't just waltz in to this line of business and expect to be a viable competitor. When you're paying worse than Ground and still losing money, well, time to stop.
When all you're willing to take is the easy in town stuff while dumping rural America onto the USPS and you still can't make it then it's probably a business you'll wish that you didn't get into . Then again if the USPS does pack it in Bezos might just have to restart and be willing to go into places he originally had no desire in going out to.
 

Working4the1%

Well-Known Member
Yes in June...this is to give their customers a heads up.Bezos will have plenty of cheap aircraft( BANKRUPTCY) and laid off pilots soon enough
 

59 Dano

I just want to make friends!
Yes in June...this is to give their customers a heads up.Bezos will have plenty of cheap aircraft( BANKRUPTCY) and laid off pilots soon enough
They are having service failures left and right NOW. How does killing the program in June help them with the issues they're having NOW?

The stated reason for this is that they're having problems NOW with their own product and this would free up the bodies to handle those problems... eventually.
 

Northbaypkg

20 NDA stops daily
Maybe you missed it, but they are killing the service in 2 months. Not now, but 2 months from now. They are keeping outside business until then.

The service is only available in a few select markets (read: areas where it is most efficient) and it's not working well. You can't just waltz in to this line of business and expect to be a viable competitor. When you're paying worse than Ground and still losing money, well, time to stop.
It didn't say killing though, it said suspending. That wording leads me to believe that like dmac said, they will start the service back up once volume is at normal levels again. Right now volume is at peak levels with all the residential areas blowing up. Probably feels like peak season over at Amazon. It sure does at UPS, well for residential routes at least.
 

Working4the1%

Well-Known Member
They are having service failures left and right NOW. How does killing the program in June help them with the issues they're having NOW?

The stated reason for this is that they're having problems NOW with their own product and this would free up the bodies to handle those problems... eventually.
DANO you really think BEZOS just giving up...I will take that wager
 

McFeely

Huge Member
DANO you really think BEZOS just giving up...I will take that wager
Did you read the article? He’s only giving up non-Amazon packages, aka third party retailers that use Amazon for shipping.

Someone correct me if I’ve misread it. It’s Saturday and I’ve been drinking all day.
 

59 Dano

I just want to make friends!
It didn't say killing though, it said suspending. That wording leads me to believe that like dmac said, they will start the service back up once volume is at normal levels again.
Here's their announcement:

At Amazon, we regularly evaluate the requirements of our businesses to ensure we are structured in the best way possible to meet the evolving needs of our customers. After careful consideration, we have decided to pause our Amazon Shipping service in the U.S. Our last day for pickups will be June 5.

The odds of it returning are slim. You don't "after careful consideration" something that is working and making money. Again, it was only launched in limited markets where it would work best and demand is high.

I wouldn't bet the entire farm on it not coming back. But it rolled out and didn't grow much at all. It had terrible issues with lost and damaged packages. Hard to imagine it returning when it struggled anyway.
 
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60lbBagofdogfood

Well-Known Member
Don’t send that :censored2: to us if you’re expecting commit times for saver. Unless you’re a business, your saver getting delivered after 3.
 

59 Dano

I just want to make friends!
Amazon so busy growing their business $1 trillion soon to be 2 trillion.
I remember how their delivery service was going to put FedEx out of business. Good times, bro!

Big difference between selling something and delivering it from your warehouse, rolling all the costs into the price, pricing it at a thin margin, and making your fortune on volume vs selling both ends of the transportation (and nothing else) at deep discounts.
 

MAKAVELI

Well-Known Member
I remember how their delivery service was going to put FedEx out of business. Good times, bro!

Big difference between selling something and delivering it from your warehouse, rolling all the costs into the price, pricing it at a thin margin, and making your fortune on volume vs selling both ends of the transportation (and nothing else) at deep discounts.
I remember when FedEx stock price was above $200. Amazon is is $2000+ right now.:happy2:
 
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