Amazon Logistics doubles parcel volumes in 2019

Investment bank Morgan Stanley say that Amazon is delivering more than half the items it sells in the US through the Amazon Logistics network. This is changing the way it deals with delivery companies like Royal Mail, FedEx and UPS.

Morgan Stanley believe that Amazon Logistics is set to surpass both FedEx and UPS in parcel volumes in the US. Currently the investment bank estimate that it handles 2.5 billion parcels a year as against FedEx’s 3 billion and UPS 4.7 billion. Amazon Logistics doubled its volumes in 2019 alone. This is partly led by its Prime same-day delivery offering.

“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers,” CEO Jeff Bezos said of one-day Prime shipping on an earnings call in October.

Amazon was contacted by US news organisation CNBC to corroborate Morgan Stanley’s estimates but refused to comment on the matter.


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