Wednesday August 31, 2016

Will Amazon Kill FedEx?

I don't know if Amazon will kill FedEx and UPS but those two sure are going to feel the loss of Amazon's delivery dollars, that's for sure. Hell, Amazon could just cut to the chase and buy FedEx or UPS and be done with it. wink

Providing near-instant gratification on Amazon’s scale isn’t cheap. Last year the company spent $11.5 billion on shippingآ—nearly twice what it did two years ago. Along with leasing jets and buying trailers, Amazon has opened more than 28 sorting centers, 59 delivery stations that feed packages to local couriers, and more than 65 Prime Now hubs stocked with best-selling items that can be rushed to customers around the world, according to MWPVL International, a Montreal-based supply chain consultant. "This year we estimate Amazon is going to sell 7.2 billion items," says Gene Munster, an internet industry analyst at Piper Jaffray. "In 2020, which is only four years away, we expect them to sell 12.6 billion items."