Amazon Shipping, which launched in 2018, is the company’s in-house shipping service that collects parcels from sellers and delivers them to end customers. According to Ed Rosenberg, who heads a group of online sellers called ASGTG, the change is a business decision driven by a lack of demand for Amazon’s own third-party delivery service. Given that Amazon needed all available deliveries and support following a supply chain shutdown caused by the coronavirus outbreak, it makes little sense to suddenly abandon its own shipping services now.
Amazon announced Tuesday it would suspend Amazon Shipping, a third-party vendor that wants to compete with FedEx and UPS. The online retailer that saved millions of Americans during the pandemic and the spread of the coronavirus is putting its third-party delivery service, Amazon Mail, which operates in select cities and delivers packages that are not ordered from Amazon, on hold. It was first introduced in Los Angeles and later extended to other US cities, and the beta service was designed to compete with UPS and FedEx.
The company said it is suspending the service to focus on its core e-commerce business, which has soared since the coronavirus pandemic.
Amazon had already announced plans to hire more than 1,000 new delivery drivers for its home delivery service and deliver basic household food and medical supplies, but only after the pandemic broke out. Instead of employing its own drivers, Amazon relies on UPS and the US Postal Service to handle a significant portion of its home deliveries. The latter terminated its contract with Amazon last year and saw the e-tailer as a threat as it expanded its shipping capacity.
Prior to the outbreak, the company informed consumers that many packages could be shipped in the usual one to two days. The idea was to ensure that customers get their parcels in time for Christmas, provided they are placed before the crucial deadline for the Christmas shipment. Shippers may have benefited from the scheme, if Amazon’s assessment is correct.
Amazon still allows its third-party vendors to use FedEx Express, which is only available for Prime orders that are included in their Prime order. Non-Prime orders can still be shipped even if they do not have a Prime shipping address, such as in the US, Canada or Australia.
The Wall Street Journal first reported, citing a source familiar with the company’s plans, that Amazon stopped delivering packages to Amazon in early June.
The delivery service, also known as Amazon Shipping, operates in a handful of cities and competes directly with UPS and FedEx. NASDAQ: AMZN) will discontinue its third-party delivery business called Amazon Shipping in the coming months, according to a source familiar with the company’s plans. According to the Wall Street Journal report, Amazon shipments reappeared in late May.
The company, which has been tested in selected US markets, takes packages from other companies and delivers them to consumers, but postpones packages that are not related to Amazon’s e-commerce activities.
Amazon will discontinue its logistics service Amazon Shipping, the company confirmed on Tuesday. Amazon said the hiatus was not directly related to the current global COVID-19 pandemic. An Amazon woman speaks with a delivery truck emblazoned with the Amazon Prime logo outside Amazon’s headquarters in Seattle, Washington, U.S., on Monday, June 12, 2016.
Amazon, which will close in June, is only available in a few major cities, meaning the move will not affect large numbers of Americans. Amazon says shipping is available in a handful of cities, including New York, Chicago and Los Angeles.
The closure of Amazon will allow the online marketplace to focus on its other services, such as Amazon Prime and Amazon Fresh. After the coronavirus triggered a surge in demand for third-party delivery services in the US, paying Amazon Prime shoppers are believed to be ordering their deliveries online, with a guaranteed delivery time of two days. Luxury will no longer be an option for shoppers who bought goods online that they would previously have bought at their local market, according to Amazon.
Of course, most items on Amazon that are not from third-party suppliers will still be delivered to your door as quickly as possible. In fact, the new Amazon directive only affects products that are in its warehouses. Products can still be ordered from a third-party seller as long as they store the items in their own warehouse. While Amazon is known for its high-quality Amazon Fresh delivery service, it has warned customers that delivery could be delayed due to an outbreak of the coronavirus in the US and other parts of Europe.
To ensure that vital items take precedence, Amazon asks shoppers to select the “no-rush shipping” option if they don’t need the item immediately. The company also said it will allow third-party sellers to resume shipping non-essential items through its Amazon fulfillment service later this week, as the Wall Street Journal first reported.