Move Over UPS, Fed Ex-Amazon Wants Business Deliveries

For thousands of businesses around the nation, and the Tri-Cities, when packages or items need to be sent out, or necessary equipment or logistics need to come in, workers utilize UPS, Fed Ex, The US Postal Service, some even use DHL.

Now, Amazon wants a piece of the business delivery pie

Amazon to Expand Its 'Fullfillment-Delivery' Service to Businesses

According to Geekwire and company information releases, Amazon plans to offer what they are calling supply chain services to businesses, separate from its consumer delivery service. According to Geekwire:

"Amazon Supply Chain Services, announced Monday morning, brings together the company’s freight, distribution, fulfillment, and parcel shipping operations into a single offering available to any business, regardless of whether they sell on Amazon’s marketplace."

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So, if you have a business that depends on sending and receiving a lot of packages, Amazon would rather you sign up with them, as opposed to using the 'other' options.

The Announcement Had Immediate Effect on Stocks

Fed Ex and UPS Stock dropped 10 percent and 9 percent respectively while Amazon's rose a little. Based on its fulfillment services, Amazon has already passed these other carriers in total deliveries.

Some companies are already utilizing Amazon's shipping, tracking and delivery options. 3-M uses it to move products to distribution centers, American Eagle Outfitters uses Amazon for what's called last mile delivery. Land's End is also fulfilling sales orders using Amazon channels from Amazon warehouses.

Amazon is Ready for the Expanded Package Service

It's not really new territory for the retail giant. They've already got 200 fulfillment centers across the US, 80K trailers, 24K intermodal containers (those big shipping boxes seen on freighters) and 100 aircraft used to fulfill 13 billion items each year.

Now, this 'arsenal' will be expanded and used to track and deliver goods for businesses outside of the 'private' consumer they've built their empire on.