Report: Online giant testing its own delivery service
Amazon’s new program could give carriers like United Parcel Service and FedEx a run for their money.
The online giant is experimenting with a program that rivals services handled by longtime partners UPS and FedEx. Specifically, it is dabbling in a program designed to make more products available for free two-day delivery and relieve overcrowding in its warehouses, according to Bloomberg.
Handling deliveries itself, Amazon oversees pickup of packages from warehouses of third-party merchants selling goods on Amazon.com and their shipment to customers’ homes. Besides giving the retailer more flexibility and control over the last mile of delivery, the pilot program is slashing operating costs through volume discounts, and reducing congestion in Amazon’s warehouses, the report said.
The company is not giving up its partnerships with UPS and FedEx, but the new service enables Amazon — not the seller — to control how a package is sent, Bloomberg reported.
The pilot program is modeled after a similar service it runs in India. The project, which is dubbed “Seller Flex,” was deployed in West Coast states on a trial basis earlier this year, and is eyeing a broader rollout in 2018.
To read more, click here.
The online giant is experimenting with a program that rivals services handled by longtime partners UPS and FedEx. Specifically, it is dabbling in a program designed to make more products available for free two-day delivery and relieve overcrowding in its warehouses, according to Bloomberg.
Handling deliveries itself, Amazon oversees pickup of packages from warehouses of third-party merchants selling goods on Amazon.com and their shipment to customers’ homes. Besides giving the retailer more flexibility and control over the last mile of delivery, the pilot program is slashing operating costs through volume discounts, and reducing congestion in Amazon’s warehouses, the report said.
The company is not giving up its partnerships with UPS and FedEx, but the new service enables Amazon — not the seller — to control how a package is sent, Bloomberg reported.
The pilot program is modeled after a similar service it runs in India. The project, which is dubbed “Seller Flex,” was deployed in West Coast states on a trial basis earlier this year, and is eyeing a broader rollout in 2018.
To read more, click here.