Dean's Carrier Corner
If you are an Amazon Marketplace merchant and doing well on the Amazon platform, it might be time to sell-out to private equity investors. Many of us have been characterizing Amazon as the enemy of the on-line merchant as the Amazon marketplace merchant relationship tends to drive down margin.
As indicated in this article, communities concerned about increased traffic resulting from new carrier delivery terminals need to be watching such initiatives closely, as the development of new micro-fulfillment centers will be following new delivery terminals.
FedEx Express lower revenue deferred shipments are growing faster than higher revenue, priority shipments. FedEx has known that they could realize significant savings by making shift changes to more efficiently manage this move from priority to deferred shipments.
COVID is driving disruption in the workplace, and parcel carriers and 3PL providers are not immune to that change. Whether driven by management, the employee, or government, the response to the pandemic has forever changed the way we live, work and play. We are entering a period of hypersensitivity in the workplace, especially as it applies to preventing the spread of infectious disease while at work. That hypersensitivity will continue to drive change.
The UPL is an automated, electronically connected network of parcel lockers, usually managed by a single entity, that can accept parcels across multiple parcel carriers/retailers or users. No such truly universal parcel locker networks of any size exist in the US, although the concept is gaining popularity in some smaller European countries.
It was in February of 2014 that Jeff Bezos announced on 60 minutes that Amazon was developing the technology to support a residential drone delivery solution. Fast forward to 2021, and Amazon is still testing residential delivery via drones, while UPS’s focus is on the business delivery. FedEx is also in the game, but to a lesser extent via a partnership with Wing Aviation.
Online merchants, e-marketplaces, parcel carriers, and technology advancements each impact the e-commerce value proposition. In simple terms, that value proposition is still based on an innovative service offering: one with multiple features and benefits that make e-commerce attractive to the consumer and drive purchasing behavior. Some of the primary components of that value proposition include:
Amazon continues to drive change in the e-commerce arena, aggressively growing their next-day, Prime delivery initiative. Today, it is nearly impossible for most e-commerce merchants to offer the combination of free-shipping and next-day delivery to most of the continental US, without compromising profit using costly Express delivery services. However, by 2022, Amazon is on track to support affordable next-day delivery to most US addresses and, today, offers the largest on-demand, same-day delivery network, Amazon Flex, in North America.