Amazon delivers more packages than FedEx and UPS. USPS still delivers the most packages in the US. For now. #ecommerce #logistics
Parcel + Ecommerce Delivery Consultant | Increasing parcel shipping knowledge throughout the ecommerce industry | Founder, LPF Spend Management
BREAKING NEWS Amazon packages delivered > UPS, FedEx OK, so not really breaking news. But a WSJ piece confirms what many assumed. [according to Amazon] Per Pitney Bowes: Amazon trailed UPS by 350M packages in 2022. [AMZN 4.8B vs UPS 5.15B] [Pitney Bowes Shipping Index] Amazon states they delivered 5.2B packages in 2022. WSJ reports Amazon delivering 4.8B packages YTD. [before Thanksgiving] With a projected 5.9B delivered in 2023. [13.4% YoY growth per Amazon] And UPS’s 2023 volume will be down YoY. [down 9.4% through Q3] So, Amazon will continue to widen the gap. Amazon organic package volume ⬆️ + % of Amazon packages delivered ⬆️ = Amazon annual growth > market growth It’s simple math. But does it mean Amazon is overtaking the package delivery market? [as some say is inevitable] I don’t think so. At least not anytime soon. Volume growth referenced is Amazon’s own volume. [not third-party retailers’ volume] But this growth and scale does/will impact the market. 1. UPS and the USPS have to backfill lost Amazon volume As Amazon delivers more of their own packages. UPS and the USPS lose volume. Backfilling volume is difficult in a soft market. UPS has to compete on price to do so. [at least more than they prefer] Granted, UPS’s Amazon volume is low margin. [assumed] So, it doesn’t have to be a 1-to-1 ratio. But UPS is already in volume acquisition/recovery mode. And losing Amazon volume adds to the issue. 2. Amazon influences its own delivery density Amazon creates and consumes package volume. They deliver the most cost-efficient packages. [assumed, broadly speaking] Leaving less efficient packages for other carriers. As Amazon builds package density in more locations: Amazon’s low-cost/efficient packages ⬆️ 3P carriers low-cost/efficient packages ⬇️ [and less efficient volume ⬆️] Amazon benefits from improved density. At the expense of their carrier partners. 3. Amazon Shipping is just getting started The WSJ piece focuses on Amazon packages only. But Amazon Shipping benefits from 1 and 2. So Amazon Shipping will have a material market impact. It’s a matter of when it will happen. ----- Amazon delivers more packages than UPS and FedEx. Not breaking news. But it’s a reminder of Amazon’s scale. And their package delivery market impact. Both of which will grow in 2024. #ecommerce #retailing #logistics #amazon P.S. The USPS still delivers the most packages in the US, but the article focused on UPS and FedEx.
