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Old 02-20-2019, 08:37 PM
 
8,035 posts, read 9,882,142 times
Reputation: 5985

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Yesterday I ordered an item from Amazon that had free next day shipping. I monitored its progress.

It did not get processed until this morning. It left Chattanooga at around 9 or 10am, and was scanned at an Amazon facility in Smyrna at 4:23pm. Then, it went out for delivery at 5:50pm. I was able to watch exactly where the driver was and knew when he was heading to my house. The package was dropped at my doorstep at 8:23pm.

This was for an item that cost $70 and the shipping was free.

If I wanted it to ship this quickly with UPS, it would have easily cost $35... and I don't know that UPS could even get something to me next day if I didn't order it until 8:30pm the night before.

Amazon is unbelievable. They are definitely mastering logistics. I think it's because they have to, because all the other players are, well, terrible at it.

Once they really perfect everything, I don't see why they couldn't go entirely into the parcel industry. Why wouldn't they start delivering any package from anyone and to anyone for a fee? I think if they did, the service would be better and the price cheaper than UPS or USPS. Maybe they'd only do it for big e-commerce players, who would be responsible for getting everything to an Amazon distribution facility, and then they would handle it from there.

I don't know exactly what it would look like. All I know is UPS, USPS and FedEx better clean up their acts and figure out how to do their jobs better and cheaper.

What do you think? Could Atlanta's own UPS be in real trouble? I think they are.
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Old 02-20-2019, 09:18 PM
 
5,919 posts, read 5,232,323 times
Reputation: 3952
Quote:
Originally Posted by ATLTJL View Post
Yesterday I ordered an item from Amazon that had free next day shipping. I monitored its progress.

It did not get processed until this morning. It left Chattanooga at around 9 or 10am, and was scanned at an Amazon facility in Smyrna at 4:23pm. Then, it went out for delivery at 5:50pm. I was able to watch exactly where the driver was and knew when he was heading to my house. The package was dropped at my doorstep at 8:23pm.

This was for an item that cost $70 and the shipping was free.

If I wanted it to ship this quickly with UPS, it would have easily cost $35... and I don't know that UPS could even get something to me next day if I didn't order it until 8:30pm the night before.

Amazon is unbelievable. They are definitely mastering logistics. I think it's because they have to, because all the other players are, well, terrible at it.

Once they really perfect everything, I don't see why they couldn't go entirely into the parcel industry. Why wouldn't they start delivering any package from anyone and to anyone for a fee? I think if they did, the service would be better and the price cheaper than UPS or USPS. Maybe they'd only do it for big e-commerce players, who would be responsible for getting everything to an Amazon distribution facility, and then they would handle it from there.

I don't know exactly what it would look like. All I know is UPS, USPS and FedEx better clean up their acts and figure out how to do their jobs better and cheaper.

What do you think? Could Atlanta's own UPS be in real trouble? I think they are.
I think that it all depends on if a company like Amazon were to want to get entirely into the parcel industry, which it is far from certain that they would want to.

I just think that Amazon's core competency is fast shipping of its own online retail items to its retail customers, sometimes/often by way of shipping companies like UPS, USPS and FedEx, and sometimes/often by way of Amazon's own contract delivery personnel.
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Old 02-20-2019, 10:36 PM
 
Location: East Side of ATL
4,256 posts, read 5,883,756 times
Reputation: 1850
They still need hundreds of plans to even match UPS or FedEx in the air.

They may match or surpass them on the ground but they have a long ways to go air wise.
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Old 02-20-2019, 10:42 PM
 
2,581 posts, read 1,222,099 times
Reputation: 1993
I'm confused...I thought Amazon uses the USPS a good amount. Let me see if I can find the article.



https://www.nytimes.com/2018/04/04/t...ice-trump.html


I believe that this article can explain it better than me.
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Old 02-21-2019, 04:29 AM
bUU
 
Location: Georgia
11,807 posts, read 8,424,943 times
Reputation: 8221
Check the date on that article. It's almost a year old. A lot has changed since then, and a lot can and will change over the next year.

Can Amazon put UPS out of business? Indirectly, perhaps, or at least they can severely change/shrink UPS' business.

It's a time-honored tradition: An upstart (and in terms of logistics, Amazon is an upstart) with heavy funding enters into an industry and cherry-picks the most profitable portions of the industry for its offerings. After a while, the incumbents are left with a business model that is increasingly dominated by the unprofitable portion of their business. Eventually, the incumbents have no choice but to either dump the unprofitable business (i.e., leaving vast portions of the country under-served) or go under.

Amazon did it to other industries. Why not logistics?
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Old 02-21-2019, 08:26 AM
 
2,581 posts, read 1,222,099 times
Reputation: 1993
Quote:
Originally Posted by DreamerD View Post
I'm confused...I thought Amazon uses the USPS a good amount. Let me see if I can find the article.



https://www.nytimes.com/2018/04/04/t...ice-trump.html


I believe that this article can explain it better than me.

I think it's too late for me to delete this. Please ignore. I addressed the USPS instead of the UPS.
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Old 02-21-2019, 08:37 AM
 
4,682 posts, read 1,915,786 times
Reputation: 14617
Quote:
Originally Posted by DreamerD View Post
I think it's too late for me to delete this. Please ignore. I addressed the USPS instead of the UPS.

Actually, sometimes they do. We get random Amazon purchases delivered by the mailman. Or, in our case, the mailwoman.



But, the original premise is correct. Amazon is less an e-tailer and more a gigantic distribution system at this point.



I still can't believe the politicians in NYC went back on the deal. As Bugs Bunny used to say, "What a maroon."
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Old 02-21-2019, 08:40 AM
 
3,550 posts, read 2,528,636 times
Reputation: 6332
I disagree that the other players are terrible at logistics. Amazon is using them too.

I'm just wondering how long Amazon's free shipping model/free 2 day with Prime membership will last. It doesn't make financial sense. It costs real money to ship things. Where is that money coming from?

That delivery driver that drove out to the country to my daughter's farm last Sunday night at 8:30 pm to deliver a $10 book for free? How is Amazon paying for this?
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Old 02-21-2019, 09:17 AM
 
4,682 posts, read 1,915,786 times
Reputation: 14617
Quote:
Originally Posted by KaraG View Post
I disagree that the other players are terrible at logistics. Amazon is using them too.

I'm just wondering how long Amazon's free shipping model/free 2 day with Prime membership will last. It doesn't make financial sense. It costs real money to ship things. Where is that money coming from?

That delivery driver that drove out to the country to my daughter's farm last Sunday night at 8:30 pm to deliver a $10 book for free? How is Amazon paying for this?

Well, given that Amazon booked $10 billion in profit last year despite huge expansion costs, I'm guessing that the business model works pretty well.
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Old 02-21-2019, 11:27 AM
 
Location: Raleigh
7,668 posts, read 5,653,192 times
Reputation: 10542
Quote:
Originally Posted by ATLTJL View Post
Yesterday I ordered an item from Amazon that had free next day shipping. I monitored its progress.

It did not get processed until this morning. It left Chattanooga at around 9 or 10am, and was scanned at an Amazon facility in Smyrna at 4:23pm. Then, it went out for delivery at 5:50pm. I was able to watch exactly where the driver was and knew when he was heading to my house. The package was dropped at my doorstep at 8:23pm.

This was for an item that cost $70 and the shipping was free.

If I wanted it to ship this quickly with UPS, it would have easily cost $35... and I don't know that UPS could even get something to me next day if I didn't order it until 8:30pm the night before.

Amazon is unbelievable. They are definitely mastering logistics. I think it's because they have to, because all the other players are, well, terrible at it.

Once they really perfect everything, I don't see why they couldn't go entirely into the parcel industry. Why wouldn't they start delivering any package from anyone and to anyone for a fee? I think if they did, the service would be better and the price cheaper than UPS or USPS. Maybe they'd only do it for big e-commerce players, who would be responsible for getting everything to an Amazon distribution facility, and then they would handle it from there.

I don't know exactly what it would look like. All I know is UPS, USPS and FedEx better clean up their acts and figure out how to do their jobs better and cheaper.

What do you think? Could Atlanta's own UPS be in real trouble? I think they are.
How did that item get from the factory, to the Amazon facility in Chattanooga, to the Amazon in Smyrna?

Also, don't confuse what you pay (or a small company pays) for shipping, with what Wal Mart, Amazon, etc, pay. They fill a large truck or fleet of trucks. Your cost, per package, would be a heck of a lot lower if you received a truck full of goods every day.
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