Amazon Delivery Business Starts Active, FedEx Threatened?

Rindi Putra
Amazon Delivery Business Starts Active, FedEx Threatened?
Amazon Delivery Business Starts Active, FedEx Threatened?
Credit: iStock

At this time the Amazon delivery business is active, and it is likely to be bad news for other shipping companies such as FedEx, UPS, etc. Amazon Prime has now sent more than half the orders that go through the Amazon website. The rest are still using other services such as FedEx, UPS, etc.

Amazon's subsidiary, Amazon Prime, has now begun to pose a threat to other large shipping companies. At least in America alone.

Currently Amazon Prime has controlled at least half (50%) of the total transactions that exist on the website for products that require shipping services.

This is certainly something to be aware of by other shipping companies. Because they do not rule out the possibility that in the future Amazon Prime will expand its services to other market places.

Products of 2005

Actually Amazon Prime has been around since 2005. But only in the last few years, it seems like they are starting to 'step on the gas' and start offering various kinds of packages. In addition, they also provide various kinds of incentives from various services owned by Amazon.

Slowly, the Amazon Delivery Business began to provide a variety of services that pampered its customers.

After offering shipping services like everything else, the Amazon Delivery Business finally offers a faster delivery time than other shipping services.

In addition, Amazon Prime also has a feature "try it first and pay", where you can try the item first and then you can decide whether to buy it or not.

In some cities, the Amazon Delivery business even offers instant 2 hour delivery for certain products such as fruit, vegetables, and other products.

Until now, Amazon prime service users continue to grow many times from year to year.

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Premium Additional Services (Add-ons)

Until now Amazon has provided a variety of additional services (add-ons) to Amazon Prime shipping services. Users who subscribe to Amazon Prime services get access to a variety of services owned by Amazon for free.

Amazon Prime customers get premium movie streaming services, music streaming, audible ebooks, and other premium services for free.

These services will certainly provide additional assessments to the Amazon Delivery business services that have existed since 2005.

These services will certainly be a differentiator from other delivery services because only Amazon can provide these services.

Amazon Delivery Business Starts Active, FedEx Threatened!

FedEx will go bankrupt? It seems to go into a bankrupt position is still far because at this time FedEx and other delivery services still have a large market share throughout the world. Unlike the Amazon delivery business, FedEx does not only service shipments originating from the website

Although currently Amazon still holds the title of the largest marketplace website in the world, the marketplace in the world is not only Amazon. There are still eBay, Alibaba, etc. that also have their respective customers.

In addition, FedEx and other shipping companies also continue to accept individual shipments, not only from the marketplace.

But if FedEx and other shipping companies do not immediately respond to this condition, it is not impossible that in the next few years this condition will worsen. It is probable that Amazon delivery business will expand beyond the marketplace and erode FedEx's market share, which is currently still undetermined by Amazon Prime.

Amazon Prime Subscription Price 

Unlike other shipping companies in general, the Amazon shipping business offers services based on membership packages, monthly or annual. Maybe in the future, there will be weekly or per transaction/services.

  • USD 12.99 / 1 month
  • USD 119.00 / 1 year

When viewed from the service rates offered, the business model used by Amazon Prime is different when compared to other services in general.

If you frequently shop from Amazon's website or other Amazon services, then you might consider this Amazon Prime service. But if you rarely buy goods or services from Amazon then it looks like you can consider other cheaper shipping services.

What do you think? I hope this article about the Amazon delivery business is useful. Stay a wise user! #beWiseUser!

Blog authors

Rindi Putra
Rindi Putra
Graphic Designer & Technology Junkie Graduated with 'International Trade Management' Major | 2 Years of Professional career on International Shipping Company & 3 Years career on Local Fashion Brand Company | 10 Years (and still counting) as Digital content creator. Feel free to connect with me on Social Media Twitter/Instagram: @rindiputra

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