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FedEx Discussions
Amazon will take all your ignorant route buyers
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<blockquote data-quote="dmac1" data-source="post: 3835468" data-attributes="member: 60252"><p>They might not want the B to B customers, but you can bet that they will offer Amazon sellers pickups for drivers to take back to their distribution center. Not the huge shippers at first, but those with a few packages. And it will be once the delivery system gets fully sorted out.</p><p></p><p>And even if Amazon makes no profit from the delivery service, they will still save money by not paying another company to profit. If Amazon can get delivery costs at the same level as FX, they can actually pay MORE. Even if they make 1/2 the profit per package that fedex makes, if they keep costs the same, drivers can make more. Point is, Amazon can make no profit, but increase customer service and decrease delivery times by using their own service, and I think that alone is enough incentive to use their own service. Faster delivery times means keeping people out of local stores and Amazon will profit from increased sales, even if they make no profit from delivering their own packages. In addition, having faster delivery service and a broader customer base because of faster delivery, more sellers will be encouraged to sell their products on Amazon. If Amazon can offer sellers lower shipping costs, it may be enough to cover the seller's costs on Amazon. Sellers can even reduce their advertising costs if they sell on Amazon, and reduce other overhead of running their own on-line sales department.</p></blockquote><p></p>
[QUOTE="dmac1, post: 3835468, member: 60252"] They might not want the B to B customers, but you can bet that they will offer Amazon sellers pickups for drivers to take back to their distribution center. Not the huge shippers at first, but those with a few packages. And it will be once the delivery system gets fully sorted out. And even if Amazon makes no profit from the delivery service, they will still save money by not paying another company to profit. If Amazon can get delivery costs at the same level as FX, they can actually pay MORE. Even if they make 1/2 the profit per package that fedex makes, if they keep costs the same, drivers can make more. Point is, Amazon can make no profit, but increase customer service and decrease delivery times by using their own service, and I think that alone is enough incentive to use their own service. Faster delivery times means keeping people out of local stores and Amazon will profit from increased sales, even if they make no profit from delivering their own packages. In addition, having faster delivery service and a broader customer base because of faster delivery, more sellers will be encouraged to sell their products on Amazon. If Amazon can offer sellers lower shipping costs, it may be enough to cover the seller's costs on Amazon. Sellers can even reduce their advertising costs if they sell on Amazon, and reduce other overhead of running their own on-line sales department. [/QUOTE]
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