Is UPS Pushing Shoppers to Amazon? - Motley Fool
Santa's helper
Amazon.com owns the online shopping world at Christmas. Last year, it accounted for 44% of all the e-commerce sales made during the last two weeks of the holidays, and 38% of total Christmas sales. It already accounts for half of all e-commerce sales made, holiday or otherwise, and analysts say it could soon drive as much as 80% of all online sales.
Holiday e-commerce sales hit record levels last year, with so-called Cyber Monday sales surging 12% from the year-ago period to hit $3.45 billion, blowing past analyst expectations of just $3.36 billion. Adobe Digital Insights notes it was the first time ever online sales exceeded $3 billion for the day, "and the first day ever to drive over $1 billion in mobile revenue."
The second-day air surcharge of $0.97 per piece that UPS is imposing -- the highest of the surcharges -- seems specifically targeted at Amazon because of its Prime membership program and its two-day delivery guarantee. Yet, because of Amazon's size and scope, it has the financial wherewithal to absorb the fee increases, whereas small and medium-sized businesses trying to compete with the e-commerce king do not.
Santa's helper
Amazon.com owns the online shopping world at Christmas. Last year, it accounted for 44% of all the e-commerce sales made during the last two weeks of the holidays, and 38% of total Christmas sales. It already accounts for half of all e-commerce sales made, holiday or otherwise, and analysts say it could soon drive as much as 80% of all online sales.
Holiday e-commerce sales hit record levels last year, with so-called Cyber Monday sales surging 12% from the year-ago period to hit $3.45 billion, blowing past analyst expectations of just $3.36 billion. Adobe Digital Insights notes it was the first time ever online sales exceeded $3 billion for the day, "and the first day ever to drive over $1 billion in mobile revenue."
The second-day air surcharge of $0.97 per piece that UPS is imposing -- the highest of the surcharges -- seems specifically targeted at Amazon because of its Prime membership program and its two-day delivery guarantee. Yet, because of Amazon's size and scope, it has the financial wherewithal to absorb the fee increases, whereas small and medium-sized businesses trying to compete with the e-commerce king do not.
