Amazon logistics service lacking for small parcel shippers, proposal reveals

For months if not years, e-commerce stakeholders have been waiting for Amazon to enter the small parcel logistics space in earnest.

In February 2018, The Wall Street Journal reported the e-commerce giant was preparing to launch a small parcel logistics service called “Shipping with Amazon” to shippers in Los Angeles. The report said the service would likely undercut UPS and FedEx rates, citing “people familiar with the matter.”

In April 2019, TJI Research reported the service, which it called Amazon Shipping, is operating in New York, Chicago and Los Angeles, but only shipping Prime orders.

According to three executives from iDrive Logistics, a consultancy specializing in third party logistics relationships and contracts, the terms of Amazon’s logistics service, which is indeed available to shippers in Los Angeles, New York and Chicago, deviates from common practice in the industry in ways that make it not an attractive option for many shippers. Read the full story at www.SupplyChainDive.com.

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