It was recently revealed that the world leading e-commerce company, Amazon, have begun to test the possibility of providing a delivery service to customers. The business currently relies upon long-term partners UPS and FedEx amongst others to distribute millions of packages throughout the world, many of which are ordered through Amazon’s ‘Prime’ service, by customers who want the quickest delivery possible.
Amazon’s new venture has been titled ‘Seller Flex’, and according to Bloomberg, the ultimate goal of its creation is to supply delivery which is both cheaper and faster, as well as to relieve overcrowding in warehouses. The announcement was made via two anonymous individuals who are working on Seller Flex, and its impact has inevitably been felt by the stock market. Shares have consequently dropped for both FedEx and UPS by 2.2% and 3.3%. This is in contrast to Amazon, who have unsurprisingly experienced an increase, of 7.3%. The company will also save a significant amount of money if their attempts prove successful, as having the ability to take control of deliveries will increase their control over the supply chain and inevitably result in increased freedom to make more decisions for themselves, without relying on external parties for support.
Despite aiming to establish Seller Flex on an international platform, the project has yet to reach the likes of the UK and United States of America. Having started up two years ago in India, Amazon are reportedly in the process of expanding these plans to merchants in the USA, beginning with the west coast. News of Seller Flex came only days after Amazon’s plans to create a giant expansion in Seattle, and a month after they expressed need for a second headquarters on the North American continent. Following on from this, Amazon signed a lease for what will soon become the second tallest skyscraper in the Pacific Northwest, suggesting that they are making significant progress.
However, all hope is not lost for the future of business between Amazon and their current partners. Whilst the new service would reduce a need for their involvement, Amazon may still opt to make use of the likes of UPS and FedEx, instead only offering Seller Flex under specific circumstances, such as for prime customers. The future of this co-operation remains uncertain, and in the midst of an ever-increasing obsession with rapid consumerism and quick online delivery, the future of this bold project is one to follow.