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UPS to become the Sears & Robuck Of shipping??
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<blockquote data-quote="Overpaid Union Thug" data-source="post: 5131828" data-attributes="member: 198"><p>There are a couple of issues here. One is that too much of the market share in e-commerce is coming out of those Amazon warehouses and fulfillment centers. Most of the big shippers sell on Amazon as well. If they weren’t delivering their own stuff now it wouldn’t affect us. But since they are, and more and more of it every year, that’s resulting in less volume for us. That’s less jobs and pension contributions for us. </p><p></p><p>Another is that they are paying their contractors (DSPs) substantially less (compared to UPS) to operate the delivery side themselves. The savings, along with their biggest cash cow Amazon Web Services, allows them to keep building more infrastructure. </p><p></p><p>They may deliver all of their stuff soon or just most of it. And it matters because, like I said, they are grabbing more and more of the market share. While our CEO and stock holders are content with shrinking but while shipping higher margin accounts. It’sa good strategy but, again, could hurt our pensions in the long run. </p><p></p><p>Many “experts” predict an even bigger increase in e-commerce in the next five years or so. Maybe that’ll send more volume back our way if Amazon can’t keep up with the growth? Or maybe they’ll finally get broken up by the government. But I doubt that.</p></blockquote><p></p>
[QUOTE="Overpaid Union Thug, post: 5131828, member: 198"] There are a couple of issues here. One is that too much of the market share in e-commerce is coming out of those Amazon warehouses and fulfillment centers. Most of the big shippers sell on Amazon as well. If they weren’t delivering their own stuff now it wouldn’t affect us. But since they are, and more and more of it every year, that’s resulting in less volume for us. That’s less jobs and pension contributions for us. Another is that they are paying their contractors (DSPs) substantially less (compared to UPS) to operate the delivery side themselves. The savings, along with their biggest cash cow Amazon Web Services, allows them to keep building more infrastructure. They may deliver all of their stuff soon or just most of it. And it matters because, like I said, they are grabbing more and more of the market share. While our CEO and stock holders are content with shrinking but while shipping higher margin accounts. It’sa good strategy but, again, could hurt our pensions in the long run. Many “experts” predict an even bigger increase in e-commerce in the next five years or so. Maybe that’ll send more volume back our way if Amazon can’t keep up with the growth? Or maybe they’ll finally get broken up by the government. But I doubt that. [/QUOTE]
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