99% are products from thousands of different manufacturers who warehouse their products at Amazon distribution centers. Either that or Amazon handles the transaction on their website and the manufacturer drop ships the product.
USPS deal
- Thread starter FedupExpress
- Start date
Gone fishin
Well-Known Member
Under the Amazon umbrella
They aren't Amazon branded. Amazon has very little sold that's Amazon branded compared to the rest.
Gone fishin
Well-Known Member
Amazon is a conglomerate of forwarders and producers
59 Dano
I just want to make friends!
Considering that shippers file MBG claims on less than 5% of service failures, no. They don't. Go work in an analytical role and take on some data from the customer service experience area or QSI. Shippers generally don't give a crap unless the late shipment causes a problem for them or the recipient.
They make me come here and argue with people who don't know what they're talking about.
But back to the idea that moving commitment times would spell disaster, no one cared when resi PO commits were moved from 10:30 to noon and no one cared when business SO commits were moved from 1500 to 1630.
Amazon is its own publicly traded company. They facilitate the movement of goods. They aren't part of the manufacturing of goods beyond a few products like their tablets and TVs that they contract with others to produce.
59 Dano
I just want to make friends!
Why not?
I don't know why anyone still thinks that Amazon is competition. They are in an entirely different business.
Gone fishin
Well-Known Member
We’re saying the same thing
MAKAVELI
Well-Known Member
Can't sell service if you can't make service. Service is all that Express sells. Plain and simple.
Gone fishin
Well-Known Member
So if I bring your pizza Wednesday and you ordered it Tuesday you’re good with that ?
Express was built on the idea of having your shipment in the morning before 1030 so a business can have it for that days work.
People don’t spend high amounts of money for express to get it in the afternoon.
Where are you lost.
EXPRESS EXPRESS EXPRESS
Sure, why not? All that matters is the stock price.
Not really. You're saying that there are a bunch of different companies that are part of an Amazon conglomerate. Amazon is a separate company whose business model is to facilitate the sell and transportation of goods for a lot of different companies. Before Amazon these companies had catalogs or their own websites. Amazon streamlines everything for them.
Fred's Myth
Nonhyphenated American
Interesting. A 180 degree change in corporate philosophy. When did this sudden enlightenment occur to management? You know, the ones who had all the facts, and were willing to step up to the plate? Certainly not before the business model was run into the ground (pun intended). Express delivery was made complex and inefficient because of the parameters imposed by corporate, that you are now saying are worthless.
And you blamed it on the couriers.
It will be fine
Well-Known Member
It’s more like Dominos dropping the 30 min delivery or it’s free deal. Or Amazon giving up on 2 day delivery for prime. FedEx can set the expectation for P1 delivery at noon and charge a crazy premium for First Overnight of 10:30. I imagine the majority of shippers will be fine with noon.
MAKAVELI
Well-Known Member
Why would they when UPS guarantees 10:30? FO is a very small % of overnight freight.
Gone fishin
Well-Known Member
UPS will have no problem getting 1030 shipments there , they’ll feast on this if it happened. They need the work and revenue with the new contract.
That said companies bundle , if you can’t handle 1030 , you can’t handle our business.
Anyone knowing anything about logistics or the delivery system knows this.
MAKAVELI
Well-Known Member
UPS is about to eat FedEx s lunch. UPS doesn't have a problem keeping dedicated drivers to give the service their customers pay for.
It will be fine
Well-Known Member
And FedEx will be able to offer their service much cheaper than UPS. I think you overestimate how important that 10:30 commit time is. The shipments that really need to be there are few compared to the ones where it would just be nice if they were there but it’s ok if they’re a bit later. Are there tons of shippers that will jump at the chance to pay 15% more for their shipping so a handful of their packages get delivered an hour earlier? I doubt it.
That's the new FDX strategy. Shippers pay more and get less. Shippers will pay as much as they've always paid for 10:30 service but get their shipment at around noon or so.
It's similar to my small town newspaper. A couple of months back I renewed my subscription then just the other day I was informed that it will no longer publish a Monday addition. I paid for 6 day a week service but now will only receive 5 for the same subscription fee.
FDX is telling customers the same thing...."Now you're going to pay on the basis of 10:30 delivery but we won't show up there until around noon and since everyone will be out for lunch we'll wait until 1 to arrive with your stuff."
When Fat Freddy and Raj the Jackal dreamed up this little caper of throwing their air box onto Ground It would appear that they never realized that out in rural America Ground jocks are still running 250 mile a day routes and perhaps more. As a result they can't wait around until the middle of the morning for the air box to arrive and still cover those huge routes some of which extend across multiple counties get their pickups and still get back in time to catch the outbound.
,
Rest assure those Ground jocks are not going to tolerate seeing their 9 hour days become 12 hour days for the same money.
Perhaps now Fat Freddy, Raj and the boys are finally waking up to the realization that what they've got on their hands is the mother of all cluster fornications and they just don't know what to do about.
Perhaps it's why seasoned traders including Jim Cramer are not quite so enthusiastic about FDX as they once were and some are bailing on it.
For decades now customers who don't need it by 1030 or noon depending on the area pay Standard Overnight rates to have it by 1500 or 1630 depending on the area. About 75% of the U.S. population can get it by 1030 if I remember right. I think you underestimate how important that 1030 commit is for some. Once Standard Overnight was implemented the number of Priority Overnight pkgs dropped. But very often I found people waiting desperately at 0930 to get their pkg so they could very quickly leave. I remember a veterinarian clinic waiting for their pkgs in Abilene, KS, a noon commit, so that they could start operations and often were calling to request that I make a beeline for them at 1000 because they were in desperate need. And before you start smirking about a little town in KS I found similar situations in downtown Seattle and in Stamford, CT. Yes there are plenty of customers who don't get excited at all about you delivering them a letter at 0915. But very often the shipper the previous day was very anxiously asking for by 1030 service because it was an important bid that needed to be delivered by a certain time or something similar.
I'm sure you know the Ground side very well but Express is a different animal. And there's a reason that FedEx Express dominates the overnight delivery industry over UPS. The only way UPS will beat out FedEx in overnight delivery is if FedEx decides to move Priority in 1030 commit areas to noon. To jack up 1030 commit deliveries to First Overnight will absolutely send that business to UPS. UPS will have to revamp their operation to keep customers happy. Can't tell you how many times customers told me they tried UPS for the lower cost and it was worth it to them to pay the higher FedEx rate for the reliability. But paying First Overnight rates for 1030 instead of 0800? Not likely.
