Amazon is Moving Further up the Logistics Value Chain with Sellers (Oct 5, 2017)
Bloomberg reports that Amazon is making yet another shift deeper into the logistics value chain, specifically with regard to third party sellers. It will now look to take control of the delivery process for items stored at sellers’ facilities as well as its own warehouses in a program it calls Seller Flex. That doesn’t necessarily mean it’ll make those deliveries itself – it may well still use UPS and FedEx – but sellers will no longer be responsible for making those decisions; Amazon will. Amazon has slowly been taking over more control of seller shipping in recent months, including changes that sellers haven’t liked, though this one seems likely to be somewhat more neutral in its impact. UPS and FedEx share prices have both taken a knock, since they might end up being squeezed out of some functions here, but the immediate impact seems likely to be fairly subtle, given that Amazon simply doesn’t have its own matching infrastructure yet for may of the deliveries those companies make.
via Bloomberg
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