Amazon gets into package delivery system

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After building a great network for online shopping, merchandise warehouses and package sorting centers, Amazon is now entering into package delivery system. This would give a tough competition to companies like FedEx and Ups.

Amazon has been living up the expectations for online shoppers and now is taking up to deliver the merchandise from place to place. Now the company has its own delivery planes, warehouses, trucks and delivery drivers. When asked to the company that if they are trying to become another company like FedEx, they say that these services created are just  a supplementary to the existing shipping providers.

It is reported that Amazon has deals with companies to pick up their businesses and ship them to customers. The delivery option is initially starting with Los Angeles. They will do it only for companies that sell their merchandise on their Amazon website. From one city hey are probably going to grow and spread across the globe.

“In all likelihood, the primary deliverers of e-commerce shipments for the foreseeable future will be UPS, the U.S. Postal Service and FedEx,” said FedEx Corp., CEO Fred Smith two years ago. But now ass per the new initiative of Amazon, things now could change a bit.

Amazon has been ambitious about developing its own shopping infrastructure since 2013. “Although we have a strong partner network here, we will always be able to leverage our strength and our knowledge about where shipments are going, both within our network and to final customers that will create opportunities for us there as we increase or better the customer experience as well.” Amazon’s Chief Financial Officer, Brian Olsavsky said.

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