by Rockwell Sands @

Amazon’s Biggest Shipper Is Now Amazon Itself

Amazon now ships the majority of its own packages through its delivery network, decreasingly relying on major shipping carriers

Ever since its inception, Amazon has relied on the major shipping carriers to deliver its packages. Now, things are changing…and the data proves it. After spending years building out its own delivery network, Amazon’s biggest shipper is now Amazon itself.

A Breakdown of Amazon’s Biggest Shippers, by Percentage

Including using its own network, Amazon ships mostly with the three major shipping carriers. The following is a chart breakdown of how much Amazon has used each one since January 2017:

Source: Axios

You’ll notice that Amazon delivers nearly half of all its packages now! You’ll also notice that FedEx and UPS have both maintained a fairly steady share of Amazon’s shipments since 2017 (albeit on the lower side). USPS’ share on the other hand, has been steadily decreasing. Just after January 2019 appears to be the time when Amazon’s trend line crossed with USPS’.

Even though FedEx comes in at the lowest share, it will be interesting to see where the FedEx trend line ends up in the near future, since FedEx and Amazon recently ended their delivery partnership.

What This Means for the Major Shipping Carriers

The implications of Amazon delivering the majority of its packages are obvious: less revenue for the major carriers.

FedEx and UPS likely won’t be as affected by the continued shift, since they never delivered as significant a portion of Amazon’s packages as USPS. USPS, on the other hand, is a different story.

Two years ago, the US Postal Service delivered the majority of Amazon’s packages (over 60%, according to the chart). As Amazon continues to build out its own delivery network, USPS’ percentage will no doubt keep declining. Considering that Amazon accounts for nearly 50% of all eCommerce sales in the United States, this model could put a significant dent in USPS’ revenue that it makes from parcel delivery.

However, it’s important to keep in mind that every private shipping carrier still relies on USPS for last mile delivery—even Amazon. The US Postal Service is the only carrier in the country that can legally touch every residential address and mailbox. With the ability to reach all of the near-159 million addresses in America, USPS’ delivery network remains unrivaled.

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