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New Amazon shipping requirements could knock down USPS - Business Insider


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SOURCE: http://www.businessinsider.com/amazon-cracks-down-shipping-usps-needed-revenue-2020-8
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Summary

But the most popular is Fulfillment by Amazon, in which the massive retailer stores, picks, packages, and ships third-party merchants' wares in its in-house logistics network.Amazon became its own largest package carrier last year, according to data from Rakuten Intelligence. The way to kill it is with very high cost of operating and forcing those who want to do their own delivery into Fulfillment By Amazon."It's unclear how many sellers use Seller Fulfilled Prime, though Business Insider's Kim reported that the program is no longer open for enrollment, or how many of them depend on the USPS for their final mile delivery. In general, analysts predict that Amazon will continue to in-source its delivery away from the USPS simply because its own network can deliver a package for cheaper — particularly in urban areas, said Nicholas Farhi, a partner at OC&C Strategy Consultants."Amazon's shipping costs will be cheaper because it's using non-unionized labor and labor that works more entrepreneurially, shall we say, than unionized labor at USPS or UPS," Farhi previously told Business Insider."You could make lots of arguments about whether that's right or not, whether we should be enjoying our speedy and cheap Amazon delivery on the kind of Uber-driver-equivalents of parcel or package delivery," Farhi added.

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