Move over, UPS. After overtaking FedEx in 2020 to take over the #2 spot, Amazon turned on the afterburners to pass Big Brown and become the top private parcel carrier in the United States. Our fulfillment warehouse staff takes a look at how this came to pass and what it may mean for the future.
Road to the Top
Only seven years ago, then-FedEx CEO Fred Smith all but laughed at the idea that Amazon could be a serious rival, referring to the idea as “fantastical.” At that point, Amazon was far in the rear-view mirror of industry leaders UPS and FedEx.
Determined to control all aspects of their business, Amazon turned their attention (and funds) toward significantly expanding their logistics network. This process was helped along the way by the pandemic, when the house-bound public increased the already significant amount of their online shopping.
Estimates are that Amazon will post final numbers of 5.9 billion deliveries in 2023, followed by UPS with 5.3 billion and FedEx with just over 5 billion. While Amazon’s number includes only packages they shipped end-to-end, number for the other two include parcels that were turned over to USPS for last-mile delivery.
What’s Next?
- In order to more efficiently serve specific geographical areas, Amazon has announced the creation of Amazon Hub Delivery, in which the company will pay small businesses to take over last-mile delivery service.
- Some retailers, motivated by Amazon’s success, are considering ways to handle their own deliveries.
- FedEx and UPS are pivoting from total volume of deliveries to focus on more profitable parcels.
A Fulfillment Warehouse and Shipping Provider? We Do It All
Thanks to strong relationships with most common carriers, Medallion Fulfillment & Logistics can handle all your shipping needs with the most cost-effective and efficient methods. Contact us to learn more.