There’s little that Amazon CEO Jeff Bezos doesn’t get involved in, so it’s not a massive surprise that Bezons has extended Amazon’s reach to include shipping. The company’s China branch has registered with the U.S. Federal Maritime Commission as an ocean freight forwarder, which means that Amazon will now have a lot more control over products coming from China.
It has been rumoured for a while that Amazon plans to branch out into logistics, and the latest filing means that the company is indeed moving forward with these plans. Having more control over shipping means that Amazon can potentially cut costs for its retailers. It also means that Amazon is lining up to provide third party logistics services to other companies - a move that has some major logistics players shaking in their boots.
It’s tough to compete with Amazon when it comes to things like content and even online purchases. Soon, it might be nearly impossible to come up with better shipping rates or even shipping abilities than Amazon -- we are talking about a billion dollar company. Most major logistics companies reach into the millions but don’t surpass that amount.
Amazon is also in talks to lease 20 jets within the U.S. states in order to deliver its own products to consumers. In addition, Amazon has also recently purchased truck trailers in order to provide on-demand driver service - something that the company has already successfully launched. With ocean, air, and land covered, Amazon is now poised to be a massive contender in the logistics field.
Amazon’s new maritime registration will have great appeal to Chinese manufacturers. With Amazon’s help, those manufacturers will now have direct and easy access to consumers - namely, American consumers that just happen to be the biggest consumers in the world.
Amazon has long wanted control over its own shipping, and now that the company has all of its cards in a row it’s only a matter of time before Amazon begins to cut out other delivery companies that usually deliver Amazon goods - but the bigger picture is the one that you should have your eye on here.
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Amazon does plan (according to various sources) to offer its shipping services to other companies. This means that the Amazon fleet (ocean, air, and land) will not only service Amazon’s clients and customers, but it will also service any other company that’s looking for a third party logistics provider. 20 jets, some ships, and a lot of trucks isn’t a bad start for a company that’s just starting to break into the logistics industry.
What you can expect from Amazon’s logistics department in the coming months is a new way of shipping things and possibly faster shipping. In the coming years, you may just see Amazon trucks delivering packages from other companies. From a business perspective, Amazon has found one very good way to control absolutely everything that the company does - including shipping. Stay tuned for more news from Amazon soon.