What's the latest on Amazon?
- Thread starter iruhnman630
- Start date
Mugarolla
Light 'em up!
Correct.
UPS has a lot more jobs due to Amazon.
UPS makes very little money off Amazon due the deep discounts.
If Amazon went away, UPS profits, as a whole, might not even notice it.
There would be job losses though.
So it would have a greater effect on the employees as opposed to UPS profits.
Orion inc.
I like turtles
It took ups over a 100 plus years to create a global air and ground network. Fedex has been at for almost 40 years. And Amazon is going to build a cost efficient and effective network to take them out of business in a few years?? Why, because they're leasing planes and trailers? Yeah except they won't have the piece ratio to cost like we do. You think other online retailers are going to let Amazon deliver their stuff? Or other companies? Or the healthcare field?
No.
Every retailer and e commerce company is trying to or has a logistics network. Wal-mart, target, Best Buy and so forth have their own trucks and feeders network. Is ups out of business? Nowhere near it.
Here's how Fedex and Ups handle Amazon if they announce entering into our field: oh hello price hike to full retail rates and no more special accommodations for your volume. You think the USPS can absorb it? Local carriers? Their own network? Nope.
Amazon stock would plummet and they'd lose billions. Don't think this isn't on the table. Amazon knows it.
No.
Every retailer and e commerce company is trying to or has a logistics network. Wal-mart, target, Best Buy and so forth have their own trucks and feeders network. Is ups out of business? Nowhere near it.
Here's how Fedex and Ups handle Amazon if they announce entering into our field: oh hello price hike to full retail rates and no more special accommodations for your volume. You think the USPS can absorb it? Local carriers? Their own network? Nope.
Amazon stock would plummet and they'd lose billions. Don't think this isn't on the table. Amazon knows it.
Anthonysg0113
Well-Known Member
How did UPS survive before Amazon?
onehandsolo
Well-Known Member
There was a article recently that estimated that Amazon was only 5 percent of ups's revenue. I would think that they r 15 to 25 percent of our volume.
Scuba Steve
Well-Known Member
Amazon won't put UPS or Fed Ex out of business. The loss of Amazon volume will create job losses at UPS.
It's not like Amazon will be delivering for other companies. They are internalizing their logistics to decrease reliance on other carriers. They will use UPS and Fed Ex where it is more profitable. The same way UPS uses the USPS as a last mile carrier.
I foresee issues with UPS using the USPS. I expect those rates to skyrocket due to the USPS recieving a third more Amazon volume than before. Fed Ex won't have much of an issue due to the long standing agreement that FDX has with the USPS to haul their air. USPS needs FDX but doesn't have much need for UPS.
In other news, seeing a ton of Amazon trailers in the road being pulled by new shiny tractors. This is volume UPS use to carry.
It's not like Amazon will be delivering for other companies. They are internalizing their logistics to decrease reliance on other carriers. They will use UPS and Fed Ex where it is more profitable. The same way UPS uses the USPS as a last mile carrier.
I foresee issues with UPS using the USPS. I expect those rates to skyrocket due to the USPS recieving a third more Amazon volume than before. Fed Ex won't have much of an issue due to the long standing agreement that FDX has with the USPS to haul their air. USPS needs FDX but doesn't have much need for UPS.
In other news, seeing a ton of Amazon trailers in the road being pulled by new shiny tractors. This is volume UPS use to carry.
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UpstateNYUPSer(Ret)
Well-Known Member
We were told that Amazon accounts for 7% of our total revenue.
Mugarolla
Light 'em up!
And that is revenue.
They account for less than 0.5% of profits.
UPS profits would barely even notice if Amazon left.
UpstateNYUPSer(Ret)
Well-Known Member
The jobs lost would be far more noticeable.
silenze
Lunch is the best part of the day
That was never volume ups moved. We only pull local loads. All other volume amazon hires contractors to zone skip.
Scuba Steve
Well-Known Member
These are local loads. Going from a fulfillment center to USPS sort facility at the local airport then on a FDX MD-11. 70 miles round trip. They pick up inbound freight from other fulfillment centers on the ABX 767.
Tiny Panda
Well-Known Member
We've just lost an account with a large automotive supplier here in the UK, it went to DHL for some reason. When i asked our sup about it he said it's no major loss moneywise as the money made on each package is tiny, maybe less than $1 on each shipment and that goes down each attempt we make. so while it's a loss of however many thousands of pkgs a week, monetary value is very small in the scheme of things. He actually said if we still had it during peak we would have struggled massively to clear with the extra packages.
They say the large volume shippers take the extra customer care away from the smaller higher profit customers
They say the large volume shippers take the extra customer care away from the smaller higher profit customers
finally some rational thinking. Amazon is not UPS's only customer. good job on the sensible talk
Brown287
Im not the Mail Man!
Spoke with some high ranking fellas in our region, and apparently we are done catering to Amazon. Word is on the street that we told them to pound sand and cut off their prime volume and evidently they then tried dumping it on X and they finally said no more. X is two days behind on 2 day service which is what prime is. So what I'm saying is that from what it looks like, Ups and FedEx finally are done aiding and abetting Amazon in slitting our throats.
What'dyabringmetoday???
Well-Known Member
As long as your job is safe all is cool, right Captain?
Brownslave688
You want a toe? I can get you a toe.
We have only been telling ups to do that for the last 2-3 years.Amazon will find out that this business is tricky. Right now they can just hand us a package for BFE and then deliver the one next to their warehouse themselves. That's easy until we start charging them up thefor that BFE package.
Overpaid Union Thug
Well-Known Member
Interesting. But what I take issue with is the supposed "2 day shipping". Amazon ships the majority of their Prime shipments via standard ground service. The only time they actually use 2nd Day is if the item isn't available in the distribution center that is closest to the customer's area and won't arrive in two days from whatever location it ends up coming from. Otherwise.... the item comes out of there as standard shipping.
Brownslave688
You want a toe? I can get you a toe.
All he says is we cut off their prime service.
And fedex is 2 days behind on the 2 day service. He never said it was all 2 day air packages.
Overpaid Union Thug
Well-Known Member
"X is two days behind on 2 day service which is what prime is."
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