Last week Amazon spent $131 billion for a 19.5% share in Wilmington, OH based Air Transport Services Group (ATSG), which operates aircraft it leases. And many believe Amazon Logistics is looking to restart picking up and delivering non-Amazon volume from its shippers. On top of that is the other billions Amazon has invested in its fulfillment network, from first to last mile.
Also, new Seller Fulfilled Prime (SFP) requirements took effect in February, with a second wave coming in June. By essentially requiring sellers to offer next-day service across the country, Amazon will drive more business to its fulfillment and logistics. Requiring sellers to ship six days a week puts pressure on UPS and FedEx to expand their Saturday and Sunday pickups and deliveries. For all these reasons, some analysts are predicting Amazon Logistics could become the No.1 parcel shipper in the United States, some saying as early as 2022.
In this latest edition of the MCM CommerceChat podcast, we talk with Kiri Masters, founder of Bobsled Marketing, about Amazon and its logistics intentions, especially with new CEO Andy Jassy coming onboard as CEO this fall after successfully building AWS into a profit powerhouse.