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Amazon to foray into 3PL business to provide end to end services

AmazonAccording to news sources (Wall Street Journal), ecommerce major Amazon is set to begin delivering orders from business partners directly to customers. The sources also reported that this new third-party delivery service will be called “Shipping with Amazon,” and the service programme is set to launch in Los Angeles and later expand elsewhere.

It is speculated that the delivery service would put Amazon in direct competition with two of its most critical partners: FedEx and UPS. According to the Journal, the plan is to start by delivering goods to from third-party sellers on Amazon’s platforms to customers. Later, the service would be expanded to include businesses not on Amazon’s site.

It is pertinent o mention that Amazon has been developing its role in logistics for years: building massive numbers of distribution centers and offering the Prime Now service that delivers specific items within a very few hours. The Journal also pointed out that that Amazon has invested in ocean freight operations and created its own air cargo hub.

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