Amazon to cut out third party delivery companies with “Shipping with Amazon”

Amazon has begun bypassing third part delivery companies and offering direct to consumer delivery with a service called “Shipping with Amazon”.

Reports have been circling about the service since mid-2018 and the service is understood to have been trialed in Los Angeles since then.

The ecommerce giant has now rolled the service out across New York and Chicago aiming do what it does best and undercut market leaders FedEx and UPS.

According to Amazon research site TJI, the service offers to take packages from sellers’ warehouses to Amazon fulfillment centres for less than both the current market leaders.

READ MORE: Over 20 AI experts call for Amazon to stop selling its facial recognition tech to law enforcement

However, further details have now emerged suggesting that the service will go beyond delivering items from a seller to an Amazon distribution centre, allowing them to print delivery labels directly.

They will then be collected by Amazon from the sellers’ warehouse every week day to be delivered to customers seven days a week.

It is understood that Amazon has told selected sellers that its service can reach nearly all US destinations within five days, suggesting that it only being used to fulfill Prime orders to customers who are within a two-day shipping radius from the sellers’ warehouse.

Though its not clear how many sellers have been invited to take part in Amazon’s new shipping programme, it is thought that it will soon expand outside of the New York, Chicago and greater Los Angeles in the future.

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Delivery / Supply ChainNews

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