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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: 3838740" data-attributes="member: 60252"><p>They can even LOSE money on their delivery service if having faster delivery service increases sales. If they simply spend as much per delivery as fedex does, they will save money by not making a profit for fedex. The added cost of shipping with fedex because fedex needs to make a profit will be a savings for Amazon. Even if, for example, fedex makes 10 cents profit per package, but it costs Amazon 9 cents more to deliver the package, Amazon still saves money-1 cent pure extra profit per package!!!!!!</p><p></p><p> And fedex WILL use other carriers where they are more efficient, like the post office for rural deliveries. And some are ignoring that Amazon will save money on products they sell if they can save even a penny by picking up products from shippers using their own Amazon drivers. That further reduces shipments for fedex. Fedex stands to lose volume on BOTH ends- from the seller to the warehouse, and from the warehouse to the buyer. If that adds up to 2 cents extra profit per package for Amazon, it doesn't matter if their shipping costs before profit are a bit higher. </p><p></p><p>And that they can profit more even with higher costs will allow them to pay more to drivers. More sellers, more customers, lower shipping costs because they don't need to profit from their delivery service, all adds up to a win for Amazon. Fedex may even end up with the same volume of Amazon deliveries after accounting for Amazon growth, but it won't be the gravy deliveries around the distribution centers. And that volume will likely be enough for fedex/UPS/USPS to continue to offer Amazon discounts for the non-gravy deliveries, and put further costs on the contractors. .</p></blockquote><p></p>
[QUOTE="dmac1, post: 3838740, member: 60252"] They can even LOSE money on their delivery service if having faster delivery service increases sales. If they simply spend as much per delivery as fedex does, they will save money by not making a profit for fedex. The added cost of shipping with fedex because fedex needs to make a profit will be a savings for Amazon. Even if, for example, fedex makes 10 cents profit per package, but it costs Amazon 9 cents more to deliver the package, Amazon still saves money-1 cent pure extra profit per package!!!!!! And fedex WILL use other carriers where they are more efficient, like the post office for rural deliveries. And some are ignoring that Amazon will save money on products they sell if they can save even a penny by picking up products from shippers using their own Amazon drivers. That further reduces shipments for fedex. Fedex stands to lose volume on BOTH ends- from the seller to the warehouse, and from the warehouse to the buyer. If that adds up to 2 cents extra profit per package for Amazon, it doesn't matter if their shipping costs before profit are a bit higher. And that they can profit more even with higher costs will allow them to pay more to drivers. More sellers, more customers, lower shipping costs because they don't need to profit from their delivery service, all adds up to a win for Amazon. Fedex may even end up with the same volume of Amazon deliveries after accounting for Amazon growth, but it won't be the gravy deliveries around the distribution centers. And that volume will likely be enough for fedex/UPS/USPS to continue to offer Amazon discounts for the non-gravy deliveries, and put further costs on the contractors. . [/QUOTE]
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