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Amazon is not delivering packages profitably period. To compare them to DHL/FDX/UPS is utter nonsense as a business operations. They make money elsewhere which is entirely fine but in the delivery business it’s purely a loss leader until they can make money on it
Not only that, lots of the article is based on number of packages being delivered. When Amazon uses their own delivery systems, they have no incentive to package economically as they have little cost overall. That's why if you order 12 things from Amazon and you're not within an Amazon services delivery area, odds are some items will be in consolidated packages delivered by UPS or USPS. But if they are using their own system, you may get 12 individual packages. So, UPS or USPS may end up delivery 12 items in 4 packages while Amazon itself will claim 12 packages delivers and hail that as some sign of "overtaking" the legacy package delivery services.
I believe we saw a similar thing during Hurricane Katrina when Walmart was hailed as some marvel of logistics because they were able to deliver supplies to their stores when needed as needed. However, when the government started contracting with them to deliver emergency supplies during disasters, their spectacular efficient system bogged down. While under their complete and only control, they could make any claims they wanted. But, once it was open to auditing and rapid changing expectations, it wasn't as marvelous as originally through.
Not only that, lots of the article is based on number of packages being delivered. When Amazon uses their own delivery systems, they have no incentive to package economically as they have little cost overall. That's why if you order 12 things from Amazon and you're not within an Amazon services delivery area, odds are some items will be in consolidated packages delivered by UPS or USPS. But if they are using their own system, you may get 12 individual packages. So, UPS or USPS may end up delivery 12 items in 4 packages while Amazon itself will claim 12 packages delivers and hail that as some sign of "overtaking" the legacy package delivery services.
I believe we saw a similar thing during Hurricane Katrina when Walmart was hailed as some marvel of logistics because they were able to deliver supplies to their stores when needed as needed. However, when the government started contracting with them to deliver emergency supplies during disasters, their spectacular efficient system bogged down. While under their complete and only control, they could make any claims they wanted. But, once it was open to auditing and rapid changing expectations, it wasn't as marvelous as originally through.
Can you cite any authority to support the underlined claim?
When you buy from the Amazon website there are three separate channels you can buy from:
1: Amazon direct.
2: Amazon Marketplace with FBA.
3: Amazon Marketplace without FBA.
Each has its own delivery protocols. If you don't know which you're buying from, three products could come in three different packages by three different carriers, from three different warehouses.
Fred Smith, founder, and CEO of FedEx famously said: Amazon was not a competitor......
Can you cite any authority to support the underlined claim?
When you buy from the Amazon website there are three separate channels you can buy from:
1: Amazon direct.
2: Amazon Marketplace with FBA.
3: Amazon Marketplace without FBA.
Each has its own delivery protocols. If you don't know which you're buying from, three products could come in three different packages by three different carriers, from three different warehouses.
Fred Smith, founder, and CEO of FedEx famously said: Amazon was not a competitor......
I would guess that Amazon's primary concern is to keep the consumer out of Wal-Mart. When the legacy carriers get overwhelmed then Amazon's products won't arrive in time and a percentage of folks will go back to the brick stores. So they have to bring in their own as they can not depend upon UPS deciding to prioritize Amazon products over their other customers like the USPS does.
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