Roger Sumner-Rivers, founder of pioneering global couriers ParcelHero, has unveiled a significant new industry report revealing the scale of Amazon’s plans to become the conduit through which all aspects of e-commerce and logistics flows.
The report, Amazon’s Prime Ambition, reveals the extent of Amazon’s investment and planning for a revolution in our supply chain, developing its own logistics operations and harnessing the potential of the Internet of Things.
Says Roger: ‘Today’s announced $57m quarterly loss is the price Amazon, and its shareholders, are willing to pay to transform the market in the future.’
Roger explains: ‘ParcelHero works closely with all the major international couriers and that puts us in a unique position to understand how the logistics market is shaping for the future. Our analysis of Amazon’s bold aims for its Prime services, have led to some startling conclusions. Amazon’s ultimate aim for its new distribution arm, Amazon Logistics, is, we believe, that it becomes a logistics company in its own right, competing with companies such as UPS and Royal Mail.’
Roger continues: ‘ The move will save Amazon $3 billion a year globally and £122 million in the UK alone. Amazon currently spends at least 9% of its sales income on transport costs and this would more than offset the $57m quarterly net loss, but its ultimate delivery aims will boost its income far more significantly in the future.’
Explains Roger: ‘Amazon needs its own logistics operation to ensure reliability of service during peak periods, but also to offer both faster and more flexible delivery options to its customers, by further offering Same Day deliveries and also weekend and evening deliveries, supporting its ambitious Prime membership plans. Our research shows this is an expensive service for Amazon to provide, but that Prime customers spend a significant 50% more than non-Prime members.’
Roger also reveals some even more surprising long term aims for the future. ‘Amazon will use its growing logistics expertise to transform the customer experience in years to come. For example. Amazon has already patented using 3D printers to produce items en route to customers, introduced the ‘Internet of Things’ in the US, so that your fridge or coffee maker sends an automatic message to Amazon when you are running low, and is, right now, trialling deliveries direct to your car.’
Concludes Roger: ‘ The reports shows why we believe long-term Amazon’s logistics plans mean everything will one day be delivered through a portal called Amazon, from the web platform you order your items on, right through to the actual production of those items, while on the way to you.’
The full report is available at: www.parcelhero.com/news/parcel-talk/amazons-prime-ambition-parcelhero-industry-report-2965