As eCommerce growth surges in America, Amazon (NASDAQ:AMZN) continues to nip at the heels of the major carriers. A new report from Bank of America research analyst Justin Post is making waves throughout the shipping industry, as Post estimates that Amazon delivered 2.3 billion packages in 2019. Post also claims these total Amazon deliveries will double as soon as 2025. If that’s the case, then the company’s delivery capabilities may be worth up to $230 billion by that year.
Amazon Deliveries Are Just Behind UPS and FedEx’s Yearly Deliveries
While 2.3 billion packages still falls below the total volume of the major carriers, that number is nothing to scoff at. However, when one takes into account the fact all 2.3 billion of these packages came strictly from Amazon’s own products and nothing else, that statistic is staggering. Below, we’ve laid out the total amount of deliveries that all three major carriers handled in 2019:
- USPS: 6.2 billion
- UPS: 4.7 billion
- FedEx: 3.1 billion
- Amazon: 2.3 billion
Post’s estimates show that Amazon is right on the heels of FedEx, coming in at around 800 million packages shy. UPS still handles more than double the packages that Amazon does, at 4.7 billion. At the top of the food chain, the US Postal Service delivers roughly three times as many parcels per year.
Interestingly enough, the other major carriers still handle a large number of deliveries for Amazon, as well. However, all evidence points to this gap shrinking as time goes on. In fact, Amazon became its own biggest shipper as recently as the summer of 2019, officially eclipsing even USPS in terms of total volume of Amazon packages handled.
As Amazon continues building out its network, it will only take on more and more of its total package volume. Eventually, Post estimates, the company may handle 100% of its deliveries (while still relying on USPS for last mile delivery, of course).
The Massive Investment in Its Own Logistic’s Network Will Allow Amazon to Capture More Market Share
Over the past couple of years, Amazon has been pouring money into building out its own logistics network. CEO Jeff Bezos even broke ground on a $1.5 billion airport in Kentucky, which will serve as Amazon’s central hub for all deliveries in the United States.
As it currently stands, these investments seem to be paying off for the company. eCommerce growth continues surging forward in the United, and Amazon is at the center of that zeitgeist. The Coronavirus pandemic of 2019 and 2020 has only driven up demand for the company’s packages, as all of America shelters in place. Therefore, there’s no question that Amazon will soon overtake FedEx in terms of total packages handled per year. Once that happens, it may not take long for Amazon to eclipse UPS, either.
The billion-dollar question here is: will Amazon ever come to rival the Postal Service’s network?