Amazon overtakes FedEx in US parcel shipping

Amazon shoppers

Despite having zero share of the US shipping market as recently as 2014, Amazon now ships more parcels than FedEx in the US.

Just behind UPS, the e-commerce giant owned 21 percent of the US market share for parcel volume, according to the Pitney Bowes shipping index.

Major parcel carriers all saw an uptake in volume because of the COVID-19 pandemic driving demand for e-commerce deliveries, but Amazon’s growth far surpassed the other major players.

Jason Dies, Executive Vice President at Pitney Bowes says COVID-19 disruptions have opened the door for different players to enter.

“It is a time of disruption, which is providing opportunities across the board for lots of different types of players who you haven’t seen in this space before, from Amazon Logistics all the way down to the last-mile delivery, crowdsourcing engagements that are starting now,” he says.

Despite Amazon’s emergence, the index found options outside of Amazon, UPS and FedEx own just 1 per cent of market share.

“We’ve found a way to pick retailers and providers that meet our criteria of what we think we can be effective in delivering,” Jason adds. “And so you’re going to continue to see that happen, I think, across the industry as people carve out where they think they can play most effectively.”

In 2020, a record 4.2 billion parcels originated from Amazon – about 2.8 billion of those were passed to other companies for last-mile delivery.

The company’s first robotics fulfilment centre in Australia will house up to eleven million items, doubling its Australian footprint.

©2019 All Rights Reserved. MHD Magazine is a registered trademark of Prime Creative Media.