Amazon officially eclipses UPS and FedEx delivery volume
In the minds of most Americans, Amazon is the online retailer that can fulfill any order— usually in just a day or two. They think about the product, not the delivery process.
While the country was busy shopping, Amazon was gaining ground as one of the country’s leading delivery businesses. In 2020, Amazon surpassed FedEx. And, according to a new report by the Wall Street Journal, last year’s figures show that Amazon exceeded UPS, taking the title of America’s biggest delivery business.
In today’s post, we’ll talk about how Amazon became the biggest delivery business in the US, its plans for the future, and how this impacts you and your company.
What are the numbers?
We know that Amazon finished 2022 ahead of FedEx and UPS, but 2023 isn’t over yet. Are they expected to hold their lead?
Amazon announced that, prior to Thanksgiving, it had delivered more than 4.8 billion packages this year. With holiday shopping ramping up through the end of the year, it expects that figure to jump to 5.9 billion packages, beating its own 2022 record by 700 million deliveries.
How is Amazon staying ahead of the competition?
What began as a virtual bookstore has expanded to become the most popular online marketplace worldwide. Amazon’s motto is “Work hard. Have fun. Make history.” It certainly has.
Amazon’s innovative business model takes “the way things have always been done” and turns that idea on its head, searching for new ways to provide customers with a great experience.
Most recently, Amazon announced an expanded partnership between Amazon Web Services and Salesforce, “deepening product integrations across data and artificial intelligence (AI), and for the first time offering select Salesforce products on the AWS Marketplace.”
Marc Benioff, chair and CEO of Salesforce, says this partnership will “deliver a trusted, open, integrated data and AI platform,” which will enable “all of our customers to be more innovative, productive, and successful in this new AI era.”
Amazon is making moves toward the future, reaping the success of its strategy and widening the gap between itself and the former shipping leaders.
What does this mean for me?
Amazon Shipping is a viable shipping service, with delivery in two to five business days— seven days per week. However, at the moment, it’s only available to Amazon Sellers.
Can you benefit from Amazon’s growth if you can’t ship with them? Absolutely.
FedEx and UPS are struggling due to the recent freight downturn and increased costs due to union negotiations. It’s a shippers market now and an ideal time for you to renegotiate your contract.
Sign up for a free savings analysis with ShipRx today, and find out how much you can save on your current shipping contract. You don’t need to wait until your contract ends to start renegotiations, so get in touch and discover the method that leads most of our clients to save 20-30% on their annual parcel spend.
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Attention shippers! If you send parcels to addresses in Boston, Chicago, New York, Los Angeles, or San Francisco, you may be surprised by additional fees on your next bill. UPS and FedEx announced new delivery area surcharges (DAS) for Save On Your Parcel Costs Today
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