Amazon now delivers more packages than FedEx and UPS in the US

Shawn Knight

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Staff member
In a nutshell: Amazon is now one of the largest package delivery businesses in the US by volume, surpassing industry stalwarts FedEx and UPS in an impressively short period of time. The e-commerce giant's delivery business grew partly out of necessity and a desire to lower delivery times. To do that without incurring excessive costs, Amazon sought to eliminate the middleman from its operations.

The ambitious plan involved creating its own cargo airline service and ground-based, last-mile delivery network. Many scoffed at the idea, especially considering Amazon was a major customer of FedEx and UPS when the plan was hatched less than a decade ago. My, how times have changed.

According to The Wall Street Journal, Amazon delivered more packages than FedEx in 2020 and surpassed UPS in 2022. This year alone, Amazon has delivered more than 4.8 billion packages in the US – a figure that does not include the Thanksgiving rush. Sources told the publication that internal projections put end-of-year US shipments at nearly 5.9 billion packages.

For comparison, Amazon delivered 5.2 billion packages in the US last year.

Notably, Amazon's figures only include packages that they handle from beginning to end. If a package goes out with Amazon but is handed off to UPS, FedEx, or USPS for final delivery, it is not counted as an Amazon delivery.

Package transportation is only part of the equation. Amazon saw an opportunity during the pandemic to regionalize logistics, and opened hundreds of new warehouses and sorting centers. By storing goods at strategic points across the country, Amazon was able to further reduce how far they had to travel to get to a buyer, ultimately reducing shipping time and resulting in increased purchase frequency.

One area that Amazon could stand to improve is its return service. As JP Morgan analyst Brian Ossenbeck highlights, Amazon is very good at the one-way network but doesn't have the same level of service in the opposite direction.

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Can't wait to pay 300 dollars for prime. I mean if Amazon is the only one of its kind, they can charge anything...
On unrelated note, has anyone used Amazon's mobile plan? Does it work well in and out the city?
Some say that secondary coverage priority can be a real problem sometimes.
 
Speaking from experience, Amazon has not entirely cut out the middleman. A few of my recent orders have not been shipped by Amazon.
Can't wait to pay 300 dollars for prime. I mean if Amazon is the only one of its kind, they can charge anything...
On unrelated note, has anyone used Amazon's mobile plan? Does it work well in and out the city?
Some say that secondary coverage priority can be a real problem sometimes.
I cannot say I would want to try it. Every time I order from Amazon it feels like I am making a deal with the devil for my soul. :laughing:Besides, I have to wonder whether Amazon is contracting with some other cell provider to offer "Amazon" service.
 
I’m actually quite happy with their return service…no questions asked, no re-packaging (just drop off item at WF or Kohl’s). And, considering how much I purchase through Amazon their Prime fee is more than worth just the cost of the cardboard boxes & bubble-wrap which I save and re-use for selling on EBay.
 
I am surprised that Walmart or some other big retailer has not been able to compete to Amazon's scale. Amazon's website is total crap IMO and for most things I can find them same price or better. Prime delivery and no hassle returns are obviously a major driver of their success. I would really love an alternative to Amazon for a cheap online "Walmart-style" store.
 
I orderd a new phone from motorola, and it was to be delivered through UPS. UPS no longer allows you to have a package that requires a signature delivered to a location you can pick it up from. Their MyChoice system cannot handle name changes and requires you to use the original login you made, so if you made one at 16 with a silly name, you are screwed.

Now, since I have a job, I cannot be home in the middle of the day to sign for a package. So I had to wait for it to be delivered three times, then returned to motorola, then get a refund for it.

I ordered the same thing from amazon. They delivered it to my pickup location, no questions asked. Took 2 minutes. Screw UPS. So long as their customer service resembles that of the soviet union, they can go bankrupt for all I care.
I am surprised that Walmart or some other big retailer has not been able to compete to Amazon's scale. Amazon's website is total crap IMO and for most things I can find them same price or better. Prime delivery and no hassle returns are obviously a major driver of their success. I would really love an alternative to Amazon for a cheap online "Walmart-style" store.
Amazon props up the massive, cost heavy prime with their AWS profits. Walmart and other big corpo retailers dont have that cash cow to fund such an expansion.
 
I am surprised that Walmart or some other big retailer has not been able to compete to Amazon's scale. Amazon's website is total crap IMO and for most things I can find them same price or better. Prime delivery and no hassle returns are obviously a major driver of their success. I would really love an alternative to Amazon for a cheap online "Walmart-style" store.
Walmart literally has an Amazon-style competing store.

The first step to more competition for Amazon is for people to actually take 2 seconds to look.
 
That's only because Amazon either ships out the wrong item or doesn't package up the merchandise well enough so I'd venture to guess about 1/5 of all they ship out is returned or reships to fix all the mistakes.
 
I’m actually quite happy with their return service…no questions asked, no re-packaging (just drop off item at WF or Kohl’s). And, considering how much I purchase through Amazon their Prime fee is more than worth just the cost of the cardboard boxes & bubble-wrap which I save and re-use for selling on EBay.
Try telling them something other than "its defective." You will not get a free return. IMO, their "free returns" is yet another Amazon ruse to snare the unwary.
 
Walmart literally has an Amazon-style competing store.

The first step to more competition for Amazon is for people to actually take 2 seconds to look.
Yeah, Walmart+, I know this. Except it is total crap if you actually took 2 seconds to use it. Walmart+ has about 6% compared to Amazon's 40% of online shopping market share. Walmart is so far behind because the interface is even worse than Amazon's. God forbid you try to order online and pick up in a local store.
 
Say what you want but I get free overnight shipping or sometimes free same day delivery from Amazon. They are better than their competitors.
 
If Sam Walton (Walmart) was still alive, you can bet he would be telling his "suits" to come up with something like Amazon Prime.
 
I get a fair number of deliveries by UPS and USPS rather than Amazon AND when I have to return an item they charge me to pick it up EVEN if it's there fault. Frankly, since the truck is here to drop off an item, no reason they could not take it back without chargeing me. Being a shut in I depend upon them, but they don't seem to cut ANYONE any slack, no matter what.
 
Walmart literally has an Amazon-style competing store.

The first step to more competition for Amazon is for people to actually take 2 seconds to look.
I check the local stores first, including Walmart, and only go with Amazon if no one else has it for pickup today. Amazon shipping is almost always significantly faster than Walmart or others. Also with Walmart I always arrange pickup as that works better than going in the store. Local prices are always close to Amazon but I'll pay the increased local taxes for same day pickup.
 
Try telling them something other than "its defective." You will not get a free return. IMO, their "free returns" is yet another Amazon ruse to snare the unwary.
So just... Say it's defective, then, and get your free return. I have returned dozens of things to Amazon over the years (less as time goes on because I try to shop with them as little as possible now), and I have literally never been denied or had anything other than a smooth experience from it. There was even one time where I ordered a jar of vitamins that showed up smashed, and when I submitted the return request they told me point-blank to just keep it and sent me a free replacement anyway (the vitamins themselves were fine, so I got an entire second jar free once I'd carefully picked the glass out).
 
And, considering how much I purchase through Amazon their Prime fee is more than worth just the cost of the cardboard boxes & bubble-wrap which I save and re-use for selling on EBay.
Wait, you can save and re-sell the boxes/ bubble wrap that you get from Amazon?
 
I have to wonder whether Amazon is contracting with some other cell provider to offer "Amazon" service.
Tmobile I believe. T-Mobile has priority in congested zones over Amazon customers though. But on paper, Amazon seems like the best of cheapest with the most coverage plans.
 
Bare in mind, "Free" delivery just means people along the delivery chain are being effectively exploited, being paid as little as possible and worked to the bone to deliver stuff. There is no "free", moving things all costs actual money involving many people along the way. I work with a number of former Amazon delivery drivers. They leave because the bare minimum pay/benefits just isn't worth the stressful conditions.
 
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