How Important Is E-Commerce to UPS and FedEx? - Motley Fool
Will e-commerce dictate the future of these delivery companies?
E-commerce wasn't just briefly mentioned in UPS' most recent quarterly report -- it was the primary reason the company reported increased sales. CEO and Director David Abney noted during the conference call that "consumer spending remains the primary catalyst for growth in the economy, and e-commerce sales have again exceeded the expectations." Not only is e-commerce increasing sales, but UPS also attributed its growing margins and increased U.S. profit directly to the trend. It's proven especially important for the company's B2C (business-to-consumer) shipments, but B2B (business-to-business) has also benefited.
But the news isn't all good.
Will e-commerce dictate the future of these delivery companies?
E-commerce wasn't just briefly mentioned in UPS' most recent quarterly report -- it was the primary reason the company reported increased sales. CEO and Director David Abney noted during the conference call that "consumer spending remains the primary catalyst for growth in the economy, and e-commerce sales have again exceeded the expectations." Not only is e-commerce increasing sales, but UPS also attributed its growing margins and increased U.S. profit directly to the trend. It's proven especially important for the company's B2C (business-to-consumer) shipments, but B2B (business-to-business) has also benefited.
But the news isn't all good.
