Amazon has officially launched its Amazon Shipping service, a non-time-sensitive ground delivery service that allows online sellers to ship packages through Amazon’s logistics network for orders that weren’t sold on its platform.
How Shippers Can Take Advantage of Amazon Shipping
According to the company’s website, Amazon Shipping allows sellers to ship Amazon orders or products sold on other sites (i.e. not on Amazon). However, company spokespeople confirmed that businesses must still sell on Amazon to be eligible for this service. Shippers should note that Amazon Shipping is an altogether different service from Fulfilled by Amazon, which is an in-house warehousing, fulfillment, and delivery service that Amazon offers for products sold exclusively on its platform.
The Estimated Timeframe of Amazon Deliveries
Per Amazon, deliveries via ground transportation that it carries out through Amazon Shipping will be made in five days or less. This is a similar delivery timeframe to comparable ground services from the major carriers in the U.S., such as USPS Ground Advantage and UPS Ground. As of this writing, it is unclear how the price of Amazon shipping will compare to those two aforementioned services.
Amazon May Win More Market Share from Major Carriers
Amazon reportedly planned to roll out Amazon Shipping in February 2020 and had long considered getting into the stand-alone shipping business before that. However, the subsequent surge in eCommerce orders and delivery demand due to the COVID-19 pandemic forced Amazon to postpone the launch.
The launch of Amazon Shipping may result in Amazon capturing more market share in the U.S. delivery industry. In 2019, Amazon’s biggest shipper became Amazon itself for the first time in the company’s history, meaning that, since 2019, the majority of the packages it ships move through its own network rather than through that of the major carriers like USPS, UPS, and FedEx.
Currently, Amazon is the single largest customer of UPS, accounting for 7.5% of total revenue, according to data from the website ShipMatrix. In 2021, Amazon accounted for 11% of UPS’ revenue. This figure is poised to decline further as Amazon continues transporting its own packages and relying less on shipping carriers to carry out delivery.