Amazon is taking on market share by keeping costs down, this has been their strategy from the beginning. Starting with Amazon web services. Amazon is based on economies of scale.
Amazon’s package delivery business is closing in on UPS, Hope writes.
Its shipping division, Amazon Logistics, already surpassed FedEx in terms of market share by volume in 2020.
Catch up quick: Amazon Logistics last year held a 22% share of the parcel delivery market (by volume), compared to UPS at 24%, according to a new Pitney Bowes report out today.
Yes, but: In terms of revenue, Amazon Logistics commands just 12% of the market compared to FedEx (33%) and UPS (37%).
Be smart: Amazon Prime free shipping limits the company from making the same kind of profits per package as the two legacy carriers, Modern Retail notes.
Axios Closer By Hope King and Nathan Bomey · May 23, 2022