jahcottontail/123RF
 

Amazon Announces Rollout of Delivery Service

  • 10 February 2018
  • Sam Mire

Amazon’s quest for utter domination over the internet of things never sleeps. Today, it’s been announced that the one-stop-shop retail giant, which already has put countless physical and online merchants out of business, intends to establish complete vertical control from point of sale to delivery.

Next thing you know, Amazon is going to be making the products it sells. But in all seriousness, that’s about the only aspect of Amazon’s business model that it won’t be in complete control of once its delivery methods are established. Delivery services like UPS and FedEx will lose a significant portion of business once they are muscled out of Amazon’s massive e-retail empire, and Amazon is hoping that, with time, they will take over all of UPS and FedEx’s clientele.

According to an article in the Wall Street Journal, the service will be called “Shipping with Amazon”, shortened to SWA for convenience. The delivery drivers will pick up the package from the business, warehouse, or factory where the item is made, then handle completely the shipping and delivery to consumers. Eventually, Amazon hopes that their service will be used by even those who are not selling through the site, undercutting UPS and FedEx when it comes to price.

As previously reported, Amazon has already made its move into ocean and air freight, expanding its delivery capabilities beyond the continental United States. Now, it has taken the next logical step in seeking to control its own domestic shipping processes, and eventually the shipping of even non-Amazon retailers.   

We’re always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices, a spokeswoman said via statement.

Though Amazon has already experimented with shipping some its packages via van, this announcement represents a significant strategic step toward further domination of all things retail, including the delivery of goods. The service will be rolled out first in Los Angeles, presumably to work out any kinks that may remain, and then incrementally nationwide. The LA delivery service will begin operation within a matter of weeks.

About Sam Mire

Data journalist and market research analyst focused on emerging technology, trends, and ideas.

Comments

COMMUNITY