Last month, American e-commerce giant Amazon Inc held a trial for quick delivery directly from its sellers without the need to over stack its own warehouses with more products and items. While this was only run on trial, Amazon may be pushing through with its own personal delivery service system without the need to recruit the services of third-party logistics services company.
Currently, over 100 million items have been delivered under the Amazon Prime membership program that offers its members a two day shipping period. However, the most recent FBA Onsite service from Amazon has allowed Amazon to track and oversee its items from one point to another without the need to pick up items from merchants or suppliers by logistic companies and delivery services to the address of the buyer which requires a longer process and resources being consumed.
Amazon has since then tested the FBA Onsite warehouse and shipping program which was run on an invite-only basis. The program allowed sellers to have a more efficient storage and shipping options allowing merchants to add the software and logistics into their warehouses.
According to Amazon’s invitation to the sellers, the new service would be groundbreaking as it will combine all existing programs and their best parts as they work on bringing down fees for shipping.
The program which was started three months ago is being run under a trial program as of last week and the program is currently a work in progress as described by Amazon and would be refined based on the feedback of their users.
Amazon is now expanding its quick delivery services particularly for items such as groceries, cleaning supplies and many other products. Aside from costs being cut from the company’s expenses being allocated on its delivery partners for the past couple of years including FedEx and UPS, it would also allow its third-party sellers to directly deliver products to its buyers. While their current couriers would still be utilized by the company, it would now gain more control of the deliveries and be flexible with its overall operations.
Reports have stated that Amazon would now be offering the FBA Onsite to more merchants to be placed under the two-day shipping program of the company’s Prime Membership.
Strong Amazon Performance and 2018 Outlook
Last week, Amazon shares rallied by more than 6% following a strong earnings report from the company that led to a positive outlook for the company this year as it continued to improve and expand its operations as it gains a bigger chunk of the market share. Amazon is currently one of the top tech stocks n the market with investors taking advantage of its previous rally shortly upon the release of their earnings report.
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