Threat of Amazon in the package delivery biz
05-23-2018, 07:21 AM
#111
Gets Weekends Off
Joined APC: Apr 2007
Posts: 1,809
Originally Posted by KC10 FATboy
The problem is Amazon wanted way more space than what FedEx could provide. Then the wanted X number of airplanes dedicated solely to Amazon peak. FedEx didn’t have a spare X of airplanes to dedicate to Amazon for only peak.
Then — and this is key — Amazon sold well above what they contracted for and the blamed FedEx and UPS for not being able to deliver. That’s a bunch of BS.
Even as of last year I saw Amazon commercials late on the 23rd guaranteeing delivery by Christmas. Impossible.
Amazon promised too much to too many people and then sold out FedEx and UPS. While both had some service problems, FedEx’s was very minor, Amazon three then under the bus.
The problem is you can’t staff an airline only for peak. When peak comes, there isn’t enough planes and crews available.
When I worked at previous company, CVG ran out of deicing fluid twice. It will be interesting to see who Amazon blames when CVG gets weathered out during the holidays.
Then — and this is key — Amazon sold well above what they contracted for and the blamed FedEx and UPS for not being able to deliver. That’s a bunch of BS.
Even as of last year I saw Amazon commercials late on the 23rd guaranteeing delivery by Christmas. Impossible.
Amazon promised too much to too many people and then sold out FedEx and UPS. While both had some service problems, FedEx’s was very minor, Amazon three then under the bus.
The problem is you can’t staff an airline only for peak. When peak comes, there isn’t enough planes and crews available.
When I worked at previous company, CVG ran out of deicing fluid twice. It will be interesting to see who Amazon blames when CVG gets weathered out during the holidays.
05-23-2018, 09:08 AM
#112
Gets Weekends Off
Joined APC: Dec 2011
Posts: 224
The other part here is that Amazon seems to be focusing on getting product to customers in a timely way as a competitive advantage of theirs in the online e-commerce space. They can't differentiate with just UPS as easily.
Shipping seems to be an area Bezos is hooked into (the whole prime membership started with shipping as a hook). Lockers, doorbells, car trunks, they are putting a fair bit of effort into just getting packages to people.
Shipping seems to be an area Bezos is hooked into (the whole prime membership started with shipping as a hook). Lockers, doorbells, car trunks, they are putting a fair bit of effort into just getting packages to people.
05-24-2018, 04:17 AM
#113
Gets Weekends Off
Joined APC: Feb 2007
Position: Airplanes
Posts: 1,378
Originally Posted by BlazingSaddles
My wife and I were talking about it the other day. We decided that we were going to cancel our prime membership and stop shopping amazon altogether. We came to the conclusion that amazon is putting to many other businesses out of business and I’d rather shop local even if it cost me a little bit more.
As a consumer I loathe UPS and go out of my way from having anything shipped by them. As a fellow aviator my advice would be to stop worrying about Amazon and keep an eye on the single pilot/autonomous push that seems to be coming from the board room, stock holders, and the FAA. If that elephant finds its way into your flight deck it'll only be a matter of time before its in mine as well.
05-24-2018, 05:23 AM
#114
Line Holder
Joined APC: Jan 2016
Position: usually middle seat on 737
Posts: 44
Quite possibly the story is not over when it comes to the last mile. In our zip code and adjacent zip codes Postal has a new policy for their rural carriers, no deliveries to the door will be provided if the carrier is required to back their vehicle up in order to make the delivery. You will receive a notice that your parcel is available for pick up during Postal's business hours at your local P.O. Advantage Amazon...lost!
If this policy spreads, and if anything comes of Trump's declarations that Postal needs to charge Amazon more, then who knows who will get the last mile.
And the big Brown parcel cars... no problem taking it to the door!
If this policy spreads, and if anything comes of Trump's declarations that Postal needs to charge Amazon more, then who knows who will get the last mile.
And the big Brown parcel cars... no problem taking it to the door!
05-24-2018, 06:10 AM
#115
Gets Weekends Off
Joined APC: Dec 2011
Posts: 224
Originally Posted by nonrev dad
Advantage Amazon...lost!
Most other shippers cannot afford to solve last mile, they need to be able to add their packages to existing delivery networks. In urban areas, amazon is *already* running their own contracted deliveries - they have that much volume (ONE seller running trucks).
USPS rates go above their own cost to deliver - everyone else is screwed and advantage amazon again, it'll become cost effective to expand their own delivery footprint.
05-24-2018, 07:11 AM
#116
On Reserve
Joined APC: Jan 2014
Posts: 16
Originally Posted by Macjet
You're definitely in the minority. I don't know anyone (my country parents included) that aren't Prime members. TV. Shopping. Huge discounts. Local shop wanted $92 for my dryer heating element. Amazon was $22 and delivered the next day. Same OEM part. Savings like that once every three weeks and my Prime membership is paying me money hand over fist.
As a consumer I loathe UPS and go out of my way from having anything shipped by them. As a fellow aviator my advice would be to stop worrying about Amazon and keep an eye on the single pilot/autonomous push that seems to be coming from the board room, stock holders, and the FAA. If that elephant finds its way into your flight deck it'll only be a matter of time before its in mine as well.
As a consumer I loathe UPS and go out of my way from having anything shipped by them. As a fellow aviator my advice would be to stop worrying about Amazon and keep an eye on the single pilot/autonomous push that seems to be coming from the board room, stock holders, and the FAA. If that elephant finds its way into your flight deck it'll only be a matter of time before its in mine as well.
05-24-2018, 11:47 AM
#117
Gets Weekends Off
Joined APC: Nov 2010
Posts: 548
Originally Posted by Trail Blazer
……………………………………. rarely does Amazon offer the lowest price. …………………………………………………...
05-24-2018, 06:00 PM
#118
Gets Weekends Off
Joined APC: May 2006
Posts: 430
Originally Posted by Whale Driver
Not true. There are many apps that install in your browser such as Wikibuy, that automatically checks the web for cheaper options in real-time. Amazon is the cheapest end cost solution very often and is almost always the cheapest option to be delivered in two days or less. YMMV.
05-24-2018, 07:54 PM
#119
Banned
Joined APC: Jun 2014
Posts: 311
Originally Posted by mrvmo
Disagree....most everything is cheaper elsewhere....and with free shipping. 90% of the time what you are looking for is cheaper on eBay. What u may not get thru free shipping on eBay is guaranteed 2 day service....but more times than not it’s at ur door in 2-3 days. If it things were cheaper on Amazon I’d be buying on Amazon as I am an extreme cheap a$$.
Shipping is not free. It is $119/yr.
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