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Parcel Market Share: FedEx 16%, Amazon 21%, UPS 24%, USPS 38%
These numbers are as of 01/01/2020 so likely well out of date, this much out of date.....
For the period 2017 to 2021 Walmart Increased sales from $481 to an expected $555B, a 15% increase. Over the comparable period, Amazon went from $246 to $468B a 90% gain.
Three more years like 2021 and Amazon overtakes Walmart.....
A little off-topic, but trucking and logistics are other areas I could see Amazon taking on in the future. As with their computing and payments platforms, first they could build it out to lower their own costs, then turn it into a platform that they could then offer to other companies.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We get deliveries every day from Amazon, and most of them are delivered by USPS. That has to be inflating the USPS numbers, without Amazon they would be much lower.
The potentially more eye opening fact for those not versed in IT - The retail side of Amazon isn't even their biggest cash cow. Their cloud computing platform (AWS) makes the most money for them.
The potentially more eye opening fact for those not versed in IT - The retail side of Amazon isn't even their biggest cash cow. Their cloud computing platform (AWS) makes the most money for them.
I think it's fairer to say that AWS is the most profitable division on a % basis, but retail generates more revenue. Amazon has over 50 data center facilities in just three counties of NoVa, where land zoned for data centers is running $1.5-$2M per acre. In 2020 Microsoft paid $90M for 66 acres.
Quantum Loophole (real name apparently) just paid $100M for data center land in Frederick, Md, but they got 2,100 acres for the $10M more than MS that they paid.
Somewhere out there is a cashiered Sears mid-level executive who probably grouses to anyone who will listen about how his company lacked vision.
If you think about it, Sears had literally all the pieces in place to be what Amazon is becoming today. An established mail order mechanism, a brand name, vendor and supplier relationships, national reach, an enormous distribution channel, and retail operations.
It was too sluggish to respond to WalMart, but it actually could have matched up well with Amazon had it not been such a dinosaur.
All Sears had to do twenty-five years ago was set up an online ordering presence and flog it relentlessly. Or, even better, buy Amazon wholesale. Woulda shoulda coulda. Sears' decline will be taught in B schools from now until the end of time.
I believe that number refers to the individual packages not the profitability or drops. If Amazon ships 5 items in a single package they have Fedex handle, that's only 1 package. But if Amazon uses their own delivery service and have the order broken into 3 packages, that's considered 3 deliveries.
Consider that Amazon took in 18 billion for Prime membership in 2020 yet spent well over 30 billion in Prime shipping. So the amount of shipments means nothing if the service is a money loser. Considering that Fedex and UPS turns profits on their shipping/deliver service, Amazon has some catching up once the hype of it being "Amazon" is removed.
I believe that number refers to the individual packages not the profitability or drops. If Amazon ships 5 items in a single package they have Fedex handle, that's only 1 package. But if Amazon uses their own delivery service and have the order broken into 3 packages, that's considered 3 deliveries.
Consider that Amazon took in 18 billion for Prime membership in 2020 yet spent well over 30 billion in Prime shipping. So the amount of shipments means nothing if the service is a money loser. Considering that Fedex and UPS turns profits on their shipping/deliver service, Amazon has some catching up once the hype of it being "Amazon" is removed.
That's called knowing the price of everything and the value of nothing......
Remember how long Amazon was criticized for being unprofitable while they were building market share?
Same principle with Prime. The $12B loss on Prime shipping is likely more than compensated for by the extra profit on the additional items sold, only because they are available via Prime. No Prime, then maybe the business would have gone to Walmart, Target, etc.
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