Amazon is testing a new delivery system, which the e-commerce giant says will reduce overcrowding in its warehouses and enable them to distribute Prime shipping for more of their products. Usually, when it comes to last-minute delivery, Amazon relies on external agencies like FedEx and UPS. With this development, however, Amazon aims to cut down its dependency on third parties for delivery and increase its logistic verticals.
The service has already begun in India, and it will be incorporated gradually in the US. A few cities on the West Coast are undergoing tests, and by next year, the model should be up and running under the name of Seller Flex.
As a company that already has operations in checkout-free grocery stores, brick-and-mortar bookstores, video streaming services, Amazon is already seems intent on proving that it can do anything. The main priority of Amazon is to ensure timely delivery of the products it manufactures and delivers, by involving a lean third-party team. In the past, Amazon used Boeing cargo planes to fulfill its logistic requirements.
FedEx has reassured its customers that it intends to bring about innovation in its services and deliveries. Patrick Fitzgerald, Sr. VP of Integrated Marketing and Communications said, “We don’t comment on speculative news stories but there continues to be reporting related to our networks and the transportation industry that demonstrates a clear misunderstanding of the scale, infrastructure, and complexity involved in running a global transportation network.”
Companies like FedEx and other transportation providers must innovate constantly as the e-commerce industry continues to evolve.