Amazon's Prime Ambition Industry report
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This is another of Parcelhero’s ‘golden oldie’ reports from the archive. Although it was first published in 2015, its predictions, particularly those around Amazon becoming a logistics provider in its own right, have proved remarkably accurate. Find out what else we predicted, and what may still come true in the future!
(This is a report from our archives. All information and figures accurate as of spring 2015)
1. The true reason for Amazon Logistics
Amazon claims its new logistics arm is simply to ‘complement’ existing delivery companies and support its key strategy of strengthening its Prime service to encourage customer loyalty. However, to support the scale of such a logistics operation, a number of industry experts believe it may well become a logistics provider in its own right, competing with established companies such as UPS and Yodel.
2. Big savings
Amazon stands to save $3bn globally and £122 million in the UK alone this year by cutting down on the use of external delivery companies, and could look to its logistics arm becoming a net income source rather than a $5.13bn yearly expense.
3. Sundays and Same-days
Amazon Logistics’ introduction means it is not beholden to traditional mailing services such as the Royal Mail, and can support its Prime service actively by boosting lucrative Sunday deliveries and Same-Day Delivery services.
4. The Amazon pipeline
Long term, business analysts believe everything, starting with weekly groceries and home services, could be delivered through a pipe called Amazon.
5. A blueprint for the future
Looking further into the future, the company is even considering using its new logistics service to manufacture items, using 3D printers, while en route to customers – the patent has already been filed.
6. Trunk calls
In March 2015 Amazon is staging trials with Audi delivering items directly into customers’ car boots (or trunks). This service could be rolled out across Germany this year if tests are successful.
7. The great experiment
Should the ‘great Amazon Logistics experiment’ ultimately prove successful it could kickstart a radical change in the entire supply chain industry, as global rivals such as Alibaba, and large-scale companies such as Tesco.com, consider whether to make their own fleet available for third party deliveries.