Amazon Resumes In-House Shipping Service - Modern Distribution Management

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Amazon Resumes In-House Shipping Service

Paused early in the COVID-19 pandemic, the service could place Amazon as a direct competitor with parcel delivery giants like UPS and FedEx.
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Sellers can now choose to use Amazon’s re-launched ground shipping service for orders placed on, the seller’s website or other channels, according to industry reports and information provided by Amazon.

In a service that is separate from the fulfillment process Amazon has long provided, the new Amazon Shipping service provides shipping for orders and products sold on other sites, potentially putting Amazon in direct competition with parcel delivery companies UPS and FedEx. Users, however, must also sell via Amazon to be eligible for the service.

Amazon sellers can use the service to ship packages weighing up to 50 pounds in two to five business days. According to Amazon’s website, the service covers domestic shipments within the contiguous U.S. and uses the U.S. Postal Service for all delivery destinations.

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On its website, Amazon does not disclose shipping rates, but it does say that weekend and residential fees aren’t changing. Before pausing Amazon Shipping in 2020, the company had offered the service in a few cities.

The U.S. Postal Service and UPS still deliver most of Amazon’s customer orders, but the company has reduced its use of UPS as its own network has grown.

The company says sales activity from independent sellers have expanded in recent years.

“More than 60% of sales in the Amazon store come from independent sellers, and in 2022, U.S.-based sellers sold more than 4.1 billion items to customers worldwide, averaging more than $230,000 in sales in the Amazon store,” wrote Dharmesh Mehta, Vice President of Worldwide Selling Partner Services, in a company blog Aug. 14.

The company also recently announced that third-party sellers who ship their products to customers rather than using Amazon’s fulfillment service will face new fees from company.

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