Tag: Amazon

Why Would Amazon Want to Start Its Own Shipping Network?

Check Out Our Yard Truck Products
Check Out Our Yard Truck Products

Amazon will soon be adding a yard truck to its extensive assortment of warehouse equipment at its distribution centers. The online giant is preparing to launch a delivery service for businesses that will pit them head-to-head with established companies FedEx and UPS.

Shipping with Amazon

Amazon’s announcement of the new service initially caused stock prices for both FedEx and UPS to dip. While the current partnership between Amazon and UPS is expected to continue short-term, it’s unclear how it will be affected down the road.

The service, to be known as Shipping with Amazon, will begin by delivering shipments from the company’s third-party suppliers. Shipping with Amazon will kick off in the Los Angeles area before branching out.

Why Expand into Delivery?

Experts speculate that there are several reasons why Amazon is pursuing this new venture:

– Amazon’s lucrative Prime membership service offers free two-day shipping on specific items, but that perk is lost when customers order from a third-party supplier. By assuming more control, Amazon is hoping to drive additional customers to purchase a Prime membership.

– With the massive size of its operations, Amazon prefers to be as self-contained as possible. Taking charge of delivery service will minimize problems, such as delayed shipments during the last holiday season.

– Shipping causes a lot of red ink on Amazon’s books. In 2017, the company spent $20 billion getting orders to customers. That figure can be sharply reduced with in-house delivery.

– UPS recently reported quarterly revenues of $18.83 billion. Even for Amazon, it’s hard to resist the lure of that kind of money in their coffers.

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Amazon Becomes a Competitor to Nearly All Businesses in the New E-commerce Supply Chain

Amazon is Moving Into More Verticals Impacting Sales
Amazon is Moving Into More Verticals Impacting Sales

There’s a good chance your business relies on Amazon services one way or another. It’s even more likely that you view Amazon Fulfillment as a competitor. One recent survey showed that 92% of distributors are feeling pressure from the online behemoth.

As the supply chain faces increasing pressure these days, how is your warehouse keeping up? Whether it’s picking merchandise faster with fancy robots or moving trailers around the yard more efficiently with a semi truck tow dolly, everyone needs to find an edge.

Top-of-mind concerns for distributors in 2018, according to Supply Chain Dive, include:

– Emerging technology

– Online sales

– Outsourced warehousing

– Regulatory effects on pricing

Constant change is the new norm. Amazon’s acquisitions frequently remake the landscape. Distributors find themselves partnering with Amazon Fulfillment even as the company feels like a competitive pressure. It’s becoming more likely that your warehouse serves as a commerce distribution center rather than a transport service for shipping goods to brick-and-mortar stores.

So, what does all this mean? The supply chain industry must operate as efficiently as possible while embracing new technology and equipment to stay lean.

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Speedy warehouses are only effective when the products can get on the road faster. Are you paying licensed shunt truck drivers to move trailers in and around the docks?

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Find out what the TrailerCaddy semi truck tow dolly can do to streamline your warehouse distribution and help your business operate as efficiently as the online giants. Contact DJ Products for a free demo or more info.