Amazon Desperately Wants To Build Shipping Network For Timely Deliveries

Amazon is working on its own logistics department to guarantee on time deliveries.

Amazon Inc. is trying to build its own logistics network for months. It can clearly be seen that the company is not satisfied and wants to minimize its dependence on the shipping giants such as FedEx, UPS, and USPS. Sources suggested that the US online retailer asked for 20 cargo jets as well to create its air delivery network. All of this may take a while for the company to set up but once it does, it will not only be ruling over the e-commerce sector but the logistics industry as well.

Amazon has been making life easy for its customers for the last two decades and this has been the basic principle of its $100 billion business. Constantly, the company has been investing in lowering prices, fast delivery options, and providing better customer experience one way or another. Anyone who is either lazy or likes convenience, then e-commerce is the best option. It surely would be difficult to argue with the advantages it provides with respect to convenience.

Amazon or other online marketplace allows ordering one of million products on your doorsteps just from a tap on the smartphone. Online shopper may receive the package in a day or two, which eventually saves time and the hassle of going to an actual physical store. One problem actually in this model is the actual delivery.

Amazon is well known for its service and it has created and maintained a reputation for what it does. Regardless, there are customers who frequently complain about their packages arriving late or not at all. Members of Amazon Prime are the most who complained as they used to receive orders after the two days window that the firm initially promised.

Apart from its overall operations – from taking orders to payments and everything – delivery is the only major aspect, which it does not control. Instead, it heavily relies on FedEx, UPS, and the postal service. Numerous online shoppers that have had bad experiences from the online marketplace asked the firm to ditch its shipping partners.

This does not only leave the US retailing giant frustrated with annoyed customers and their complaints but it has to pay the price by giving compensation to the shoppers who complained in terms of credit for subscription purchases of its Prime membership. Many customers have decided to not order from Amazon again due to the delivery service.

There is no secret in the fact that the business of the Seattle based firm has massively grown in the past years. According to the data published by Bernstein Research, it is believed that Amazon managed to ship nearly 500 million packages in 2015 out of which 40% of the packages were delivered by UPS.

Inadequate attempts of delivering packages to the customers are one of the major reasons that are forcing the. company to build its own shipping network As the business is growing with time, the delivery needs are increasing and the company is opting for different strategies to meet the rising demand.

Sources suggest that Amazon has reached an agreement with UPS to manage the Sunday deliveries whereas it will be handling the same day delivery service on its own in selected cities. It hired numerous drivers to drive from one city to another in order to deliver packages on time. Soon, it will be coming up with a bigger plan to build a strong in-house logistics department.