The Strategist

Amazon to launch its own delivery system


10/06/2017 - 12:49



The world’s largest online retailer, Amazon.com, is testing its own delivery service, which may become a serious competitor to FedEx and UPS. The American company plans to reduce the time for free delivery for many products to two days.



Adam Matan
Adam Matan
In addition, Amazon.com will be able to unload overcrowded warehouses, Bloomberg reports with reference to the company’s sources. The American online retailer started experimenting with such kind of delivery two years ago in India. Now Amazon is ready to unleash this pilot project in full power in the US market.

Shares of express delivery companies UPS and FedEx have fallen down on the news that Amazon is testing its own delivery service.

Amazon itself calls this project Seller Flex. First, as part of the experiment, this type of delivery will be offered to American sellers on the west coast in this year. Then in 2018, the range will be extended to the entire territory of the United States.

Amazon will monitor loading of third-party vendors from Amazon.com's warehouses and will also be able to control the delivery of these goods to customers. Now this work is the responsibility of express delivery companies UPS and FedEx. In the future, Amazon may still continue to use the services of leading American delivery services to the door, but the online retailer will independently decide how exactly the goods will fall into the hands of the buyer.

Due to the fact that Amazon will handle the processing of more orders, the company will be able to control the whole process of delivering goods to buyers' homes from beginning to end. This will allow the retailer to increase sales, save money and unload its own warehouses.

Previously, Amazon acquired the New York startup Body Labs, which developed a technology for 3D-scanning of human body. The acquisition of the start-up cost the company $ 50-70 million. Body Labs is developing software that creates a 3D model of the body.

Body Labs claims that this technology can be used for gaming purposes, as well as for creating virtual fitting rooms. Over the past year, Amazon has significantly increased its presence in the fashion market by launching its own clothing line, creating hardware Echo Look and software that helps to find the right image.

source: bloomberg.com




More
< >

Tuesday, October 17th 2017 - 08:10 China offers to buy 5% stake in Saudi Aramco

Tuesday, October 17th 2017 - 07:38 Bombardier to hold a sale