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Why are you Letting Amazon Take Over Every Part of Your Life?

December 02, 2021

Ed Burek

Why are you Letting Amazon Take Over Every Part of Your Life?

So, everyone knows Amazon. For years they have dominated e-commerce. But now, they are heavily investing in end-to-end logistics. We all know that Amazon is in business to make huge profits. And they do. But isn’t that your goal as well? The question we ask you, as a seller, is why are you letting Amazon take over every part of your life?

The global third-party logistics market is expected to expand to approximately$1.5 trillion by year-end 2026, up from $889 billion in 2020. Based on Amazon’s Q3 2021 earnings call, Seeking Alpha reports that Amazon’s logistics business is worth approximately $310 billion today and is poised to reach $1 trillion by 2031. If Amazon meets its target, it will be the dominant logistics player by 2031.

Along with a fleet of cargo planes to support their same-day to second-day business model with Amazon Prime, Amazon also has 40,000 semi-trucks and20,000 sprinter vans with115,000 workers transporting goods and services worldwide. It’s no surprise that they are eyeing a near-total takeover in terms of volume and service to major logistics companies like UPS, DHL, and FedEx. We are guessing that their next play might be to buy up airlines. They already employ pilots of major airlines—this is a logical next step for them.

As a seller, what should you do about this? The first thing you need to tackle to be competitive with Amazon is to differentiate and make it simple for you and your end-to-end logistics and not rely solely on Amazon, FedEx, DHL, USPS, or UPS as your logistics carriers.

Differentiating end-to-end logistics will accomplish a few things:

  • You will control the process from shopping cart to delivery to your customer.
  • Your business has more revenue potential because you will not be paying external logistics providers like Amazon, UPS, DHL, or FedEx and their surcharges.
  • You will have greater brand control.

Acquiring a new customer is five times more expensive than retaining a satisfied customer. As a seller, you recognize the importance of getting your goods to your customer on time. Nearly 9 in 10 shoppers will go elsewhere for products if they experience a bad last-mile delivery.

Amazon wants to be your primary sales channel, warehousing, and first-to-last mile provider. But there are technology solutions that will allow you to have control over the logistics process. Doesn’t that sound like a better option for you and your brand?

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