We didn't think they'd be able to compete unless they had at least one distribution center for everyone one of our hubs. But now they are already delivering much of their own stuff (all of it except irregs in some areas) and they haven't matched us building for building yet.
If you buy a pair of shoes from an Amazon seller and there are multiple sellers with that same item warehoused throughout the country, Amazon will ship you the one that makes the most sense logistically and replace the borrowed item at their leisure. I don't see how that easily turns into Amazon picking up 3000 packages from a customer, sorting them and then shipping them to numerous destinations throughout the country.
And people saying FedEx is no longer shipping Amazon is complete BS. We pick up at numerous 3rd party Amazon warehouses. These handle nothing but furniture, small appliances and mattresses. Some days my building brings in 8 ZZZ trailers full of mattresses from one warehouse and FedEx is still taking the same number of trailers they were before. If UPS and FedEx stopped delivering those packages Amazon would be in serious trouble with some of their vendors.
I think our higher ups think the pie is growing so quickly they can take the $$ from Amazon now and not hurt their business down the road.