Amazon is reportedly testing its own delivery service in the US to take on pure-play logistics companies FedEx and UPS both of which are longstanding Amazon partners. Amazon intends to reduce the rush in its warehouses, especially for ‘two-day delivery’ orders. Interestingly, the service piloted in India two years ago, and Amazon has been marketing it to US merchants for while, Bloomberg reports. The project is said to be “confidential”, and Amazon is calling it ‘Seller Flex’. Also Read - Amazon Prime Day sale 2021: Top 5 deals on budget phones from Redmi, Samsung, moreAlso Read - Xiaomi Mi 10i gets discounted by Rs 1,500 on Amazon India: Check the deal
Amazon started trials of the service earlier this year in states in the US West Coast, and a pan-nation rollout is likely in 2018. Amazon will oversee pickup of packages from the warehouses of third-party merchants that sell on Amazon.com and their delivery to customers homes the job that is currently done by partner-services UPS and FedEx. Amazon, and not the seller, would decide how it would deliver a particular order, the report states. ALSO READ: Amazon India aims to add 5,000 new jobs, expand its storage capacity in 2017 Also Read - Amazon Prime Day sale top deals: Top 5 discount offers on Echo devices you should not miss
“Amazon s final-mile efforts reflect a logical extension of its model as it builds network density,” an e-commerce analyst was quoted as saying. However, FedEx and UPS investors might see this as Amazon’s “encroachment on the broader logistics space”. For the Jeff Bezos-owned firm though, a presence in fleet delivery one of the most important pieces in the e-commerce puzzle would allow it to discount high-volume deliveries for customers. ALSO READ: Amazon India increases minimum delivery amount by Rs 100
It would also allow Amazon to expand its Prime shipping service to more categories and products, thus driving customer satisfaction. The company has in the past leased Boeing cargo planes to beef its shipping network. There’s also the Prime Air drone delivery project that is a work in progress. While Amazon had been testing drone deliveries for a while, it made its first demo in March this year, when it dropped off a couple of sunscreen bottles at a robotic conference. In addition, the company spends billions of dollars annual for FBA (Fulfilled by Amazon) orders.