Carrier Services Expand to Help Shippers Compete with Amazon

As Amazon unveils new delivery and pickup options, e-commerce companies, retailers and manufacturers selling directly to consumers must contend with rising customer expectations as Amazon sets that bar still higher. Fortunately, carriers are going to great lengths to improve the efficiency of the last mile, the most expensive part of the fulfillment process, and shippers can take advantage of these new carrier offerings to provide optimal service and streamline the customer experience if they choose their carrier services wisely.

Let’s have a look at some major changes that have happened in the last two months.

Amazon creates delivery businesses for employees

Amazon recently announced its plan to offer employees the chance to start their own businesses delivering Amazon packages. The company pays $10,000 in startup costs for an employee’s independent Amazon delivery business, providing them with the necessary resources for their venture.

With Amazon decreasing its Prime shipping time from two days to one, it needs to handle its high parcel volume within a shortened delivery time. As employees create Amazon-backed businesses, the company secures more control of its deliveries through a vast network and decreases its reliance on carriers such as USPS or UPS.

Shifting partnerships for carriers and retailers

Amazon’s desire for carrier independence seems to come at a fortunate time, with FedEx announcing it will not renew its air-delivery contract with Amazon. Amazon represented only 1.3% of total sales at FedEx, and the carrier is likely to work with e-commerce shippers lacking but trying to match Amazon’s fulfillment capabilities and provide services to simplify the entire customer service experience.

In 2017, Amazon entered a partnership with Kohl’s, allowing customers to make Amazon returns in stores. FedEx is employing a similar strategy by expanding its reach with Dollar General; 1,500 Dollar General stores will enable customers to drop off pre-packaged and pre-labeled FedEx shipments and pick up packages in the stores. Thanks to Dollar General’s presence in rural locations, the FedEx partnership expands its footprint beyond its FedEx Kinkos locations, enables customers in these markets to send and receive packages without traveling too far, and aims to make e-commerce returns a breeze. By using stores as delivery and return hubs, carriers simplify shopping for consumers regardless of who they buy from while presumably increasing use of their shipping services.

As the popularity of e-commerce continues to soar to new heights, shippers face considerable pressure to fulfill customer demands effectively. Carriers are eager to help and working hard to deliver new innovative services, especially for the last mile.

It’s up to shippers to pick the best carrier and carrier service to ensure timely, reliable and cost-effective delivery. Logistyx’s multi-carrier technology makes this easy while also improving customer service by offering full transparency and delivery status visibility to customers.

We can help you keep up with Amazon and the e-commerce revolution. Learn more about our multi-carrier shipping technology.