Introduction To Amazon
Are you excited to read the topic Who Does Amazon Use For Shipping?
Amazon is an American multinational tech company that is focusing not only on e-commerce but also on cloud computing, digital streaming, and AI. It is important for an e-commerce company to be good in shipping as well as the other processes in order to become a successful company or business as a whole. Henceforth it is one of the important processes for any E-commerce business. Shipping is the transporting of goods from one region to another through the sea or by other means of transportation.
Amazon has spent a huge amount to fix the delivery issues. Hence it has become the 4th largest shipping company in the United States. Also, it is delivering to almost 67% of the consumers directly without other logistics service providers by the end of the year 2020. There has been an increase in the delivery of goods directly from 50% in 2019.
According to Geekwire, “The U.S. Postal Service made a $1.6 billion profit delivering for Amazon in 2019, according to internal”.
Amazon has not only the products that are sold on their own but also it has given the option for the other retail firms and other partner firms to get registered and sell their products.
Delivery Service of Amazon
Other than fast delivery, The other two main factors are Huge collection or variety, and lesser price. Due to the superstore model of amazon, it could be capable of purchasing and storing a large number of products, also the price is lesser when compared to other retailers and one more is that Amazon provides free shipping for Amazon prime customers. All these factors made an intense impact on the buyers to be their customers.
Amazon distribution channel has two kinds of channels for shipping the products to the customers.
- Amazon drivers fulfill their business orders that are available in its own warehouses that are located around US cities and abroad where the biggest selling items are stocked and also there are other delivery partner affiliates that may take one hour or same day or 1-2 days drop-off depending on the options available with respect to region or location and the product to deliver the parcels to customers.
- The registered sellers on Amazon can use different options for shipping like FedEx, United Parcel Service (UPS), US postal services(USPS), DHL Express, etc are used more commonly and other services used are ABF Freight, Aramex, Chilexpress, Deprisa, etc. as per their convenience when the package is ready for shipping i.e, to go out the door.
Distribution System
For any E-commerce company, it is important to strengthen its distribution in order to become successful. Amazon continuously focused on improving its distribution since when it launched its distribution network in 1997.
National carriers use regional carriers to deliver their packages. However, to deliver large or heavy items, it uses CEVA, Pilot, or XPO logistics. Also for the same-day delivery, it uses On track, and for standard deliveries, it uses Alaska and Hawaii.
Amazon has increased its distribution operations to the jet fleet also. Currently, Amazon possesses around 85 planes that are flying mostly within the US. Also, it has two main hubs for air service at Cincinnati and Northern Kentucky International airport and Textron Aviation’s Cessna sky courier.
Amazon in India
In India, Amazon started its business operations in 2013 and now Amazon India has more than 10 lakh registered sellers. Also, there will be some gigantic warehouses called Amazon fulfillment centers where the products are stored, packed, and shipped to customers. There are around 60 fulfillment centers across India. All the activities like sorting, packing, etc are done by humans in India whereas some activities are done by robots in the US.
Working procedure:
- The registered seller labels the product with a barcode containing details that include item description, the appointment for the truck to pick up that particular product, and delivery-related details.
- Trucks drop those goods in fulfillment centers at an allotted time
- These goods are then segregated and shipped. Shipping of products is either by Amazon itself for their own products or products of their registered sellers or by sellers and other service providers to deliver the parcels to the respective customers.
Conclusion
Due to the customer-friendly approach and the constant focus on the sellers and distribution channels to take care that there is no waste of time during the shipping process. So it can be concluded that because of the approaches and measures taken by amazon and the distribution system of amazon, Amazon became one of the largest shipping companies and hence became successful as an e-commerce company as well.
Frequently asked Questions
- What is the reason behind Amazon becoming successful in shipping?
- How is Amazon approaching countries like India to increase the pace of distribution?
- What are the challenges that are being faced by Amazon in Shipping?
- How is Amazon carrying out its distribution in Rural parts of the country?
- What are the challenges faced by the E-commerce companies like Amazon carrying out shipping in rural regions?
- What conflicts arose between amazon and its service partners for delivering or shipping products? How did Amazon overcome those challenges?
- How Amazon’s business model in America is different from India?
