mcg wrote:jetblueguy22 wrote:JayinKitsap wrote:I suspect Amazon is cherry picking the best shipments to in house, but that is a natural choice. Let FedEX and UPS do the deliveries that cost more, keep the profitable ones for oneself.
That’s exactly how it works. Give the TVs, furniture, and other irregular stuff to the carriers and keep the light, small, easy stuff for themselves. It’s smart.
Now I’m not saying they aren’t handing smalls over to the Big 3, they most certainly do. But in areas where they do have their service up and running it’s going through their network. I believe they also base it on whether or not a carrier will be in the general area. They don’t have stop density on their side. UPS and Fedex drivers will service a smaller geographic area (especially UPS) because they have so much other work to fill in the holes, Amazon doesn’t have that. Yet.....
Last fall I was driving between Libby and Troy Montana. This is a very rural area far from anything really, and rumbling down the road came a UPS package delivery truck. It made me wonder what UPS would be bringing to Troy Montana and after just a moment the I figured it was Amazon stuff. People in rural Montana might actually like free two delivery more than more suburban or urban folks. It also seemed to me that Amazon might be leaving UPS the relatively difficult and expensive ( I suspect a delivery in Troy is more expensive than in most places) items to deliver. I wonder how this changes the relationship between UPS and Amazon.
I started my career at brown in a rural building. I never thought that farmers and other rural folks would order online as much as they do. It was pretty surprising how much rural work there was from e-commerce.
That stuff may be high cost, but there is a rural surcharge that gets slapped on it. I’m sure Amazon pays less than the listed price, but they still pay it