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Amazon Doesn’t Have Enough Route Density for Its Own Delivery Service

By 24/7 Staff / / October 5th, 2017

Donald Broughton, Broughton Capital managing partner, discusses the news that Amazon is testing its own delivery service to rival FedEx and UPS.

Amazon is testing an expansion of its delivery operations, including overseeing pickup and delivery of items from third-party seller warehouses to customers, possibly taking over some of the functions of long-time shipping partners like the United Parcel Service and FedEx, according to a Bloomberg News report.

Amazon didn’t specifically deny the report but issued a statement to GeekWire in response to questions about the reported plans, saying “We are using the same carrier partners to offer this program that we’ve used for years, including UPS, USPS, and FedEx.”

The program referenced by Amazon is Seller Fulfilled Prime, a service that lets third-party sellers slap the Amazon Prime two-day shipping badge on their products, with the caveat that they must meet Amazon shipping requirements.

The goal of the program Amazon is reportedly experimenting with, which Bloomberg reports began in India two years ago and is being tested in western U.S. states, is to expand the breadth of items available under Amazon Prime. By better utilizing third-party warehouses, the program could also clear up logjams at Amazon’s growing network of fulfillment centers.

Bloomberg reports the name of the program is Seller Flex, and it is another example of Amazon’s push to help third-party sellers speed up their deliveries. It would go along with programs like Seller Fulfilled Prime and Fulfillment by Amazon, which lets third-party sellers send their goods to Amazon warehouses and get them under the Prime rapid delivery umbrella. - 24/7 Support including Chat
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  1. merryjhon

    Amazon has been working to create its own delivery service, but a recent report suggests that the company doesn't have enough route density to make it profitable. This highlights the importance of using the best amazon marketing services to optimize logistics and improve delivery times, as it can help sellers reduce costs and increase efficiency. With the right automation tools in place, Amazon sellers can compete with the retail giant's delivery service and provide their customers with the best possible experience.