Less than a decade after Amazon broke into the logistics industry, it has become its own biggest shipper.
Why it matters: While the world has fixated on Amazon’s moves into books, groceries and cloud computing, perhaps most formidable of all has been its swift break into a different business — package delivery.
In a relatively short time, Amazon has built up a logistics arm that is already turning this industry worth many billions on its head.
- “Amazon is about 40% of all e-commerce. If they’re handling half of their own shipments, that’s 20% of the whole market,” Alex Pellas, a logistics expert at market research firm Rakuten Intelligence, says. “That’s huge.”
In a dataset provided first to Axios, Rakuten Intelligence followed tracking numbers for millions of Amazon packages per month.
- Researchers found that nearly half (48%) of Amazon packages are delivered by the company itself.
- That’s a dramatic shift from two years ago, when the Postal Service delivered more than 60% of Amazon parcels, and Amazon just around 15%.
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