![]() Still, Amazon’s astounding growth in the fulfillment sector points to bigger ambitions. According to one estimate from DePaul University, Amazon is expected to have around 80 planes in its arsenal by the end of 2021, compared to UPS’ 275 planes and FedEx’s 463. Amazon’s fleet is still only a fraction of UPS’s and FedEx’s. Compared to the two establishment companies, Amazon’s shipping fleets still have a lot of room to grow. (Pitney Bowes estimated that Amazon Logistics earns $4.30 per parcel.)įurther, parcel shipping also represents one slice of what UPS and FedEx offer to their customers. That means customers order frequently from Amazon Logistics, but Amazon isn’t making the same per-parcel profits as rival carriers. ![]() Individual customers generally pay for shipping per package with UPS and FedEx, whereas Amazon Prime offers free shipping to its customers in exchange for a subscription. ![]() One way to explain that discrepancy is Amazon Prime. By comparison, FedEx has 34% of the parcel market by revenue ($58 billion) and UPS has 35% ($60 billion). Pitney Bowes estimated Amazon Logistics’ revenue to be just 10% ($18 billion) of the overall parcel shipping market, even if its volume is more than double that. For one thing, while Amazon might have comparable market share of parcel shipping by volume, its revenue figures still pale in comparison to those of UPS and FedEx. Responding to the Pitney Bowes data, she said, “the fact that they advanced beyond FedEx by that much, that I find impressive.”Īmazon’s infrastructure is not on par with those of FedEx and UPS in every respect. “When you look at Amazon overall, I’ve always seen them not only as a technology company and a retailer, but I’ve also seen them as a fulfillment company, a fulfillment provider,” said Rachel Dalton, director of e-commerce and omnichannel at Kantar. “The parcel market remains highly consolidated among Amazon Logistics, UPS, and FedEx, which collectively account for 99% of US parcel shipments by volume.” “This data supports Amazon Logistics’ overall growth” Jason Dies, evp and vp of sending technology solutions at Pitney Bowes, said in an email to Modern Retail. Those figures make concrete what many in the industry have known for a while: Amazon has become one of the biggest delivery forces in the U.S. In 2014, Amazon delivered just 20 million packages, versus the 4.2 billion last year. Since then, it has turned a relatively marginal operation into a parcel shipping behemoth. Amazon only opened up its shipping and warehousing network to third-party sellers in the past decade. That shift has happened with incredible speed.
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