Fedex Express Dumps Amazon as Customer

[WayOutWest]

From Barron's:
 

FedEx decided to dump Amazon.com as a customer on Friday, saying it would focus instead on doing business with other online retailers. The move underscores the extent to which Amazon has become a serious competitor to existing logistics providers. But it also shows that FedEx believes it doesn’t need Amazon’s high-volume business to thrive.

“FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with [Amazon] as we focus on serving the broader e-commerce market,” FedEx said in a statement. Amazon accounts for 1.3% of FedEx sales, according to FedEx.

read entire article at: https://www.barrons.com/articles/fedex-dumps-amazon-51559941071

Of course, Amazon would probably have ended up dumping Fedex, since they're building out their own delivery network.  I suspect Fedex felt it would look better to investors if Fedex did the dumping, but I could be wrong.

[uncleleroy]

Fed Ex doesn't guarantee much of anything anymore for deliveries so it is no big loss, imho. With Amazon going to 1-day delivery, maybe this is the straw that broke the camel's back?

Fed Ex sucks anyway, at least around here. Throw packages into the yard, put them right in front of the door so it can't be opened from the inside, put them on the bottom step that is exposed to the rain/snow when my porch itself is covered. Lazy worthless 

[WayOutWest]

Fedex Air usually does a good job around here.  Fedex Ground, though, is a whole nother matter.  They constantly deliver my stuff to the house down the street and some time back I had multiple boxes of product headed to FBA and the truck that was hauling them to Tulsa left the back of the truck open while going down the road, dumping my boxes out a few miles away on the street. 

The only reason I found out is because someone living near where they got dropped saw two of them sitting there, picked them up, and called the number on the return address (me).  The other boxes were never seen again.

Fedex covered my cost on them, but that didn't make up for the lost sales 

[Southern Jewel's Fab Finds]

Axios had a great article:
https://www.axios.com/amazon-shipping-chart-fedex-ups-usps-0dc6bab1-2169-42a8-9e56-0e85c590eb89.html

Interesting and packed with facts.

"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."

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%.

[WayOutWest]

During my last stays in Denver and Houston, every Amazon package was delivered by Amazon.  Where I live, they're all still delivered by USPS and UPS. However, when you think about it, Amazon doing their own deliveries in the larger metro areas and using usps & ups for the rest, makes sense.  It costs a lot more to deliver when the customers are fewer in number and more spread out.  Heck, there's only ONE Uber driver in the nearby town. Lol

It's a little surprising, though, that half of their orders would be to large metro areas. I knew it'd be high, just didn't realize it was that high.  Sure, there's a much larger population, but I would have thought ppl that live further away from big cities would tend to do most of their shopping online, whereas those that live in the larger metros would be doing more local shopping.  I guess for ppl in the bigger cities it's about the convenience factor. 

I came across a perfect example of why I shop so much online just the other day. Went to local grocery stores, and then finally the super Wal-Mart, looking for cocktail sauce. The only brands that anyone in town carries are Good Value, Louisiana, and Kraft. No Crosse & Blackwell, no Hoffman House, not even McCormick brand. [The Kraft was a little boring and had that lecithin aftertaste (if you've ever had cheap cookies that had a funky aftertaste, that's lecithin), the Louisiana was overly sweet and ketchupy,  The Good Value brand was actually the better tasting of the three, but still wasn't great, was merely okay.    I guess I should have simply made my own. :/  (didn't have the horseradish or the Worcestershire sauce on hand)]  There's a similar lack of selection for many other products where I live, which is why I buy so much online and seldom even bother to look locally for what I want/need.

On a complete aside, town near me only has 3 grocery stores (counting the Wal-Mart), but has 6 liquor stores and 5 marijuana dispensaries   

[uncleleroy]

I live west of Cleveland just out past the suburbs and I have noticed a lot more of those stupid blue Amazon delivery vans around here. So now, I am just about done ordering stuff from Amazon for any personal use whatsoever. I gotta keep them for business use because the reward points I'm accumulating through Speedway gas stations doesn't provide U-line gift cards but they do for Amazon. So, I'm going to be ordering a LOT of shipping stuff from Amazon because of gift cards. The stuff I order is slightly less than Uline but not having to pay for it is like having Christmas all year long.

As far as your town having all those liquor and drug dispensaries, that is a built-in market for potato chip and other munchie sales. Maybe you should open your own munchie biz?

And I completely agree with you on the lack of selection for quality products on store shelves like a good cocktail sauce. All Walmart does is put the cheapest version of garbage out there and that is exactly what a lot of that stuff tastes like: garbage. I'll go to Walmart for milk, bread, eggs and that kind of stuff but I'll go to a regular grocery store most of the time for most other things. I only do my full grocery shopping at Walmart if I am short on time.

[Southern Jewel's Fab Finds]

So, I'm going to be ordering a LOT of shipping stuff from Amazon because of gift cards. The stuff I order is slightly less than Uline but not having to pay for it is like having Christmas all year long.

As far as your town having all those liquor and drug dispensaries, that is a built-in market for potato chip and other munchie sales. Maybe you should open your own munchie biz?

And I completely agree with you on the lack of selection for quality products on store shelves like a good cocktail sauce. All Walmart does is put the cheapest version of garbage out there and that is exactly what a lot of that stuff tastes like: garbage. I'll go to Walmart for milk, bread, eggs and that kind of stuff but I'll go to a regular grocery store most of the time for most other things. I only do my full grocery shopping at Walmart if I am short on time.

Personal use of purchases from Amazon for me have gone up minimum 4 times and probably closer to 5 times what I used to purchase.

My used to be purchases from Uline fall are being handled the same way as you.

<perk>
Marijuana dispensaries = Cornering the Dorito's market

Honestly though... the dispensary that just opened on the north side of Lakeland is knocking it out of the park.
95% of the customers are over 65 and buying edibles, vapes, etc.
Business is booming!
My side of town doesn't have one.... yet.
30 minutes to northside of town or 30 minutes towards southwest of my area of Lakeland has plenty of them.

Heck, I make my own cocktail sauce.
<smile>
I can control ingredients when I make my own but if I can't, I dayum sure refuse to buy products that are a cesspool for our bodies.
We watch every single bit of sugar, salt etc that goes into our diet.
People who are smart read labels and the labels of some of those foods is garbage.
I won't eat garbage. Nope. Nada. Just refuse to do it.

I will admit to using the coupon codes with Wal-Mart for pick up for quality items I do want.
<shrug>
I have the worst of times finding diet ginger beer (no alcohol, just very spicy, gingery carbonated beverage) for my moscow mules.
They have it. I normally by five six packs at a time and just have it here. 
Sure, I could order it off of Amazon...it's 8 times the price.
Sure, I could get it at my beloved Publix... priced at four dollars more a six pack. 
I'm errrrrr... frugal.
<smile>

Moving forward with retiring from Amazon at a pace that is working.
Met with accountant yesterday and it's looking good for being out of the ecommerce business at 11:59pm December 31, 2019.

Then I can be a lady of leisure.
<smile>

[uncleleroy]

Moving forward with retiring from Amazon at a pace that is working.
Met with accountant yesterday and it's looking good for being out of the ecommerce business at 11:59pm December 31, 2019.

Then I can be a lady of leisure.
<smile>

Don't be a stranger! Just because you will have escaped Hell does not mean you should forget about us. After all, who else are we gonna have to keep us pushing through reminding us that it is all worth it in the end?