Amazon’s In-House Shipping Leads to Late Deliveries
In the race to make one-day shipping a reality, Amazon is moving away from USPS and UPS for deliveries, and opting to use their own third-party carriers. Amazon believes these third-party partnerships are vital to their growth.
“We have great third-party partners as well in the transportation space,” Amazon CFO Brian Olsavsky said. “What we like about our ability to participate in transportation is that a lot of times we can do it at the same costs or better.”
While the company believes that becoming increasingly self-sufficient is improving their operational efficiency, data says otherwise. According to Rakuten Intelligence, 4.6% of Amazon items were delivered late in 2017. This year, late deliveries have more than tripled and are now at 16.6%.
Amazon refutes claims that their late deliveries have increased, but many believe that the data proves the company is prioritizing speed over efficiency. “Amazon rushes into things and cleans it up as they go,” said Alex Pellas, who led the study. “They prioritize speed over getting it perfect every time.”
In the short run, it seems that relying on in-house shipping is hurting Amazon’s efficiency, but it remains to be seen whether the move will pay off in the long run.
FedEx to Offer 1-Day Passport Processing
Lining up perfectly with summer vacations, FedEx is now o
ffering expedited passport processing, making receiving a passport in one day a new option for consumers.
To achieve this lofty goal, the carrier is partnering with RushMyPassport, a company that helps with new passports, passport renewals, name changes and replacing lost, damaged or stolen passports.
While this will certainly be a useful tool for procrastinating travelers, it will come with a hefty price tag. The one-day passport service will cost a baseline of $449 and the cheapest option of 10-12 day passport renewal will cost $99.
FedEx’s move to offer quick passport processing reflects the shipping industry’s efforts to meet consumer expectations for convenience and speed. Amazon and Walmart’s next-day shipping war is impacting all corners of the shipping industry, and it is up to carriers like FedEx to keep up.