Amazon cares about profit no doubt BUT with that being said they care about customer loyalty almost as much. This is a company that will refund $2000 dollar items at the drop of a hat. All the customer needs to say is UPS/USPS/FEDEX never delivered it and almost instant refund. They would take a loss to control more in the process on how they get their items to their customers. If it costs them 10 billion in the short term to make 50 million with every day delivery you can bet your butt they will do it.
Amazon volume being taken away in major cities?
- Thread starter SFdriver
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Amazon cares about profit no doubt BUT with that being said they care about customer loyalty almost as much. This is a company that will refund $2000 dollar items at the drop of a hat. All the customer needs to say is UPS/USPS/FEDEX never delivered it and almost instant refund. They would take a loss to control more in the process on how they get their items to their customers. If it costs them 10 billion in the short term to make 50 million with every day delivery you can bet your butt they will do it.
Lol sales. Sales don't mean. Profit talks and if we forced Amazon to go all in and deliver all of their stuff tomorrow they'd go bankrupt before they had a chance to stop spinning their wheels.
Somewhat true they would stutter but they would just solely use FEDEX or USPS (or some other delivery service) until they got something going. IT would take all three of the major carriers to stop and drop them to make them deal with something like that.
Brownslave688
You want a toe? I can get you a toe.
Amazon can not continue to promise future profits.
Alibaba is showing how it can be done. Amazon even in the best case scenario will have a 8-10% profit margin. Which is nothing compared to how the stock is priced. They are so jealous of Google of Facebook its not even funny. Low overhead huge profits.
Retail is just the opposite. Huge overhead low profits. Amazon is retail.
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Brownslave688
You want a toe? I can get you a toe.
FedEx refuses to give Amazon a discount and there's no way the post office could handle that volume.
MAKAVELI
Well-Known Member
That's not true. FedEx gives Amazon a discount just like all the carriers.
brown metal coffin
Well-Known Member
And this is why Amazon to date has not turned a profit and is not in any immediate danger of doing so. How long can they continue to just promise profits? There are other business models out there that are similar to them that do manage to operate in the black.
Brownslave688
You want a toe? I can get you a toe.
Bbsm who is a mod and a ground contractor has stated a few times that fedex ground Will not
Give them a discount. It's why we carry most of their volume.
MAKAVELI
Well-Known Member
Well I can't speak for ground but here at Express we do discount their volume. That's why our volume has spiked over the past year. Most of our resi routes now have a significant to a majority of Amazon most days.
overflowed
Well-Known Member
He's right, I've seen routes at Express that are 90% amazon. Full, all day, 12 hour routes.
MAKAVELI
Well-Known Member
Might as well have Amazon painted on our planes. The boxes have been getting bigger and heavier. Delivering furniture, barbecue grills, and exercise equipment up flights of stairs is not fun.
overflowed
Well-Known Member
Even when no stairs it's still not fun.
MC4YOU2
Wherever I see Trump, it smells like he's Putin.
Amazon does what they do, which is to retail, quite well. Any major deviation from retailing has a inherent risk. They may add services to set themselves apart from competitors, but investing in a large behemoth shipping fleet and crew would be disastrous.
I read a story about the Heinz ketchup company and how years ago they used to make not just the ketchup, but also the bottles and caps and absolutely everything involved in their business they could to control "costs" and still could not control things. They got too spread out. They now contract out everything, like Amazon was doing a few years ago. A company like Amazon or UPS or Heinz has to decide what it's going to be good at. Then it has to hire out the other stuff. It's why ups doesn't build airplanes or package cars. There are so many companies who can beat their ass at it, it would not pay in the long run.
I read a story about the Heinz ketchup company and how years ago they used to make not just the ketchup, but also the bottles and caps and absolutely everything involved in their business they could to control "costs" and still could not control things. They got too spread out. They now contract out everything, like Amazon was doing a few years ago. A company like Amazon or UPS or Heinz has to decide what it's going to be good at. Then it has to hire out the other stuff. It's why ups doesn't build airplanes or package cars. There are so many companies who can beat their ass at it, it would not pay in the long run.
Ground no doubt gives a refund but will not give the refund Amazon would require to ship everything with us. It all comes down to profit margin. Amazon doesn't want to pay it and Ground isn't going to "buy" their business.
MAKAVELI
Well-Known Member
Well right now, Express is " buying" their business. The difference is Express needs the volume and Ground needs the profit margin on their volume to remain high.
Agreed.
Overpaid Union Thug
Well-Known Member
Yes. Any UPSer with any sense would want US delivering Amazon's stuff.
Amazon would have to have a building (distribution center) for everyone one of our hubs and extended centers in order to deliver everything on their own. Otherwise the network wouldn't be adequate without the help of another carrier or two.
You have to look at the history of how UPS grew its network, and consider just how many distribution points it actually requires in order to cover enough ground efficiently and at a profit, in order to see just how silly it would be for Amazon to attempt to deliver everything on their own.
And solely using the USPS (or even FedEx) to make up for the inadequacy of their own future network would be a disaster. But that goes without saying. Despite what some would say about UPS lately, and some of it is true no doubt, UPS is still the best for the job. If we could fix our main weakness in the feeder network, which is lack of enough sleeper teams, our network would be hard for Amazon to refuse.
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