In June 28th, in addition to FedEx, UPS, DHL and US postal services, Amazon also wanted to build its own last mile delivery service, according to foreign media reports.
This Thursday, the e-commerce giant announced the latest express service partner program, which aims to make logistics companies play their own local advantages to build distribution networks, and Amazon can provide up to 40 trucks with Prime words.
At present, Amazon's distribution network has a simple workflow, each of which is allocated to 75 Amazon's warehouses in the United States by geographical location, where Amazon employees send packages to the distribution station or send them to other express partners, such as FedEx and UPS.
According to eMarketer estimates, 40% of e-commerce purchases will take place on Amazon's platform this year.
Clark said that Amazon has maintained a good relationship with third party express partners and is as large as possible to meet demand, and this trend will not change in the future.
In its latest annual 10-K filing, Amazon said there was a risk of over-reliance on third-party partners such as UPS or FedEx.
In the document, Amazon said that logistics costs, including sorting, distribution centers and transport, have soared from $11 billion 500 million in 2015 to $21 billion 700 million in 2017, and is expected to continue to rise.
Amazon's new plan has more control over logistics costs and customer services, while improving the performance of the e-commerce giant. Amazon said the project could also help hundreds of small logistics companies and generate tens of thousands of jobs across the country.
However, Amazon did not specifically estimate the number of distribution drivers and the specific delivery time.
According to Amazon, every delivery service partner can get $10 thousand in start-up funds, but partners have to pass Amazon audits, and once approved, they can rent a Prime - like Van from Amazon, but the job of a driver is done by a partner. Amazon will also offer discounts to businesses in terms of fuel, insurance and welfare programs. Amazon said that if the cooperation between the two sides was successful, it would earn about $300 thousand a year.
In the past five months, a small logistics enterprise owner named Olaoluwa Abimbola has begun testing Amazon's distribution service. Although his degree is computer science rather than logistics, he says he loves his new business very much, and has hired more than 40 employees, and the staff's rest time is very loose and has plenty of rest time.
This whole new
Amazon's choice of express partners is only part of the company's plan to build its own logistics network. Amazon has 7000 wagons and 40 aircraft, with a total of about 5000000000 Prime goods delivered last year by working with external express partners.
Although Amazon will not disclose the financial plan behind the new project, Clark says the new plan is more about the improvement of the customer experience and the growth of the overall profit, which is a cost-effective way to achieve it.