Just as any other online retailer, it’s very important to have a good delivery service to maintain an overall good quality as sellers, but who is in charge of Amazon deliveries?
Until not long ago, Amazon heavily relied on services such as UPS and FedEx, but they now cover a lot of ground themselves, by making their deliveries without having to use any other delivery service.
However, given all the orders and Amazon’s high demand, there is no way they can make all the deliveries without help.
Does UPS Deliver Amazon Packages?
Yes, UPS is in charge of a good amount of Amazon deliveries however they have been slowly but steadily shifting towards making more deliveries themselves. So while Amazon still relies on third-party delivery services like UPS, it seems that they want to change this situation, so that it benefits them logistically as well as other aspects such as expenses and control over the packages.
“What we see which is very helpful is the ability to control the whole flow of products from the warehouse to the end customer, it’s turned what normally was a batch process, where we would hand off a large batch of orders to a third party once a day, let’s say, to a continuous flow process where we continually have orders leaving our warehouses five, six times a day, going through middle mile and then to final delivery, either through our AMZL drivers or [contracted delivery] partners.”
We may see Amazon in control of 100% of their deliveries at some point, and it will without a doubt make them even more efficient.
If you want to learn more about Amazon’s deliveries and specific information regarding their third-party services then keep reading.
What Percentage of Amazon Packages Are Delivered by UPS?
UPS delivered 24% of the packages in 2020 and the number just keeps decreasing as Amazon keeps growing their delivery service.
As Amazon keeps growing, they are hiring more and more of their own drivers, independent contractors, and growing their Flex program.
This gives Amazon complete control over their shipping process and leaves fewer room for outsourcing and errors in the future.
Why Did FedEx Leave Amazon?
FedEx decided not to renew the contract in 2019 for a few reasons including Amazon’s increasing interest in becoming a competitor as a delivery service and not receiving as much revenue as they did before.
However, in 2020 they did partially return, what this means is that they don’t make deliveries for every package but it does allow third-party sellers to offer this service to their customers.
Who Delivers Amazon Packages?
Amazon is a very big company with very high demand from their customers all around the world, so it makes sense that they have some help when it comes to their deliveries.
Here are all the delivery companies that work with Amazon to help you get your package.
USPS (U.S. Postal Service)
USPS is a service from the United States that provides mail processing and delivery services to many people and various businesses in the U.S. whether they are very big or very small.
One of the big ones is Amazon, as USPS has been an important part of the puzzle in enabling the e-commerce giant to grow into what it is today.
Besides Amazon, USPS also delivers packages for eBay and Etsy, which puts them in a great position against its competitors.
They also have the largest percentage of packages delivered for Amazon from the big three.
UPS (United Parcel Service)
UPS is a multinational shipping company that has been around since 1904 and has been working with Amazon for quite some time now as one of the most reliable third-party delivery services.
As we stated before Amazon is now in charge of a lot of its deliveries. For many years Amazon worked with FedEx, UPS, and USPS but according to recent reports, Amazon is almost reaching the same level of shipping as UPS.
This has put Amazon as one of the top deliverers of packages. Just in 2020 Amazon managed to deliver 4.2 billion shipments which is an amazing growth from the 1.9 billion in 2019.
While some of this is attributed to the high demand in times of the pandemic, there is certainly a lot of hard work behind the success of the famous retailer.
Just to have a general idea of their success let’s review their beginnings as deliverers.
In 2014, Amazon started their shipping and warehousing network, that same year they delivered around 20 million packages, which is a lot less than the 4.2 billion from 2020.
UPS is still in charge of a relatively small percentage of Amazon deliveries, however, the online retailer is slowly but surely making their way to being in charge of all deliveries so that they won’t need third-party services such as UPS, FedEx, or USPS.
We’ll just have to wait and see if Amazon manages to fulfill those dreams to establish themselves as worthy of delivering 100% of the packages for every single customer.