Shipping with Amazon - UK Post and Courier Industry - Most Flexible Delivery System - OTTO Group - IT Report Writing Assignment Help

Assignment Task

Shipping with Amazon set to disrupt the UK post and courier industry: With the launch of Shipping with Amazon, Amazon are set to disrupt the UK courier industry in ways never before seen.

Shipping with Amazon effectively sets Amazon up as a normal courier – they’ll collect parcels from online retailers (regardless of whether the sale took place on Amazon or not) and deliver the next day to the consumer.

Amazon already has plenty of experience delivering parcels and even as a private delivery company is one of the top couriers in the UK alongside giants such as Royal Mail, Hermes, and Yodel. They have built out Amazon Logistics to deliver products held in their warehouses, either sold by Amazon Retail or through FBA when sold by third-party merchants. In recent years, Amazon added Seller Fulfilled Prime, where a retailer could keep the stock in their own warehouse and Amazon Logistics, would pick it up to deliver, so collections from merchants are nothing new for Amazon.

Delivery options
One of the reasons Shipping with Amazon will become ultra-attractive to consumers is the breadth of delivery options Amazon can offer. Amazon already delivers to your doorstep, to a neighbor, to a safe place, to a locker, to a parcel shop and are experimenting with drones, deliveries to your car boot, delivery to your garage and even delivery to inside your house. It’s unlikely that all of these options will be available through Shipping with Amazon at launch, but they’ve got the technology to build the most flexible delivery system of any courier as they progress.

Amazon has also built superb tracking into the Amazon app which gives an estimated time of arrival and as the courier nears the consumers home a live map showing where the courier is, how many deliveries they have before yours and estimated time of arrival. We already know that consumers love this but it’s not clear if it will be available through Shipping with Amazon… but if not we’d expect it to come soon.

Shipping with Amazon gives a scale for Amazon Logistics
By taking on deliveries for products they haven’t sold, Amazon will be able to massively scale up Amazon Logistics. They already have thousands of contracted third party couriers across the country and the steady influx of parcels with goods not sold on Amazon will increase this massively. What Amazon is lacking, however, is the massive sorting hubs with miles of conveyor belts that can transport a parcel in minutes from the incoming truck to the outgoing truck – Amazon Logistics is still a largely manual sortation process and so the scaling up will hit a ceiling fairly quickly.

Amazon Logistics is set up for products coming out of a fulfillment warehouse and that’s a totally different operation to thousands of parcels arriving on a trailer ready to be sorted. Don’t expect this to deter Amazon however – they have form for building operations needed to run their internal business and then renting them out – look at AWS where Amazon sells could computing, the marketplace itself where Amazon as a retailer allows merchants to sell on their platform, Amazon FBA where Amazon need warehouses but scaled with dozens of warehouse across the country by renting out space for merchants stock. Amazon is aiming to build Amazon Logistics into a massive enterprise and the launch of Shipping with Amazon this week is just the start.

As an indicator of how far Amazon Shipping could go, we need to look no further than Hermes. Hermes was founded in 1972 as the private delivery company for the OTTO group. Now they are one of the largest couriers in Europe and there is no reason that Amazon couldn’t follow suit.

Shipping with Amazon gives data to Amazon
Shipping with Amazon will provide a ton of data for Amazon to crunch. They already know what you sell on Amazon but if you start shipping your eBay and website sales as well as those from any other platforms you trade on through Shipping with Amazon they’ll build a picture of your business and discover what percentage of your sales take place on Amazon.

Sales on Amazon, for those that don’t use FBA, will be a natural place to start using Shipping with Amazon. So long as you despatch on time, Amazon will then be responsible for delivery and one would expect them to protect your seller metrics if anything goes wrong. As soon as you start shipping products sold on other venues, Amazon starts to build a bigger picture of your entire business and that data has value to Amazon.

The big question that everyone is asking, of course, is how long will it take eBay to add Shipping with Amazon as an option so that eBay sellers can upload tracking information and will eBay provide the same On-Time delivery protection for sellers.

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