Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Amazon Could Soon Be the World’s Biggest Shipping Company

Companies / Amazon Sep 25, 2019 - 02:19 PM GMT

By: Stephen_McBride

Companies Amazon (AMZN) kicked off the internet shopping boom in the ‘90s when it started shipping books.

These days, you can click a button and get almost anything delivered to your door.

Amazon sold $164 billion worth of stuff on its website this year.

If there were a disruptor stock hall of fame, Amazon would be first in line.

But Amazon didn’t disrupt shopping alone. Goods can’t ship themselves.



America’s two largest delivery companies—UPS (UPS) and FedEx (FDX)—got all that “stuff” from sellers to buyers.

It won’t surprise you to learn the online shopping boom has been wonderful for their businesses. Their revenues have almost tripled since 2000, to a combined $140 billion.

But the days of these companies are numbered…

Amazon Is Quietly Spinning Its Own Delivery Web

Let me show you an important picture...


These are cargo planes with “Prime Air” written on the side.

They’re AMAZON cargo planes.

No company in the world spends more on shipping than Amazon.

It spent $27 billion to ship stuff last year!

And it’s one of UPS’s largest customers, making up roughly 10% of its sales.

But over the past couple of years, Amazon has been working on a project that should terrify UPS and FedEx...

It has quietly blanketed America with its own delivery web.

Today, Amazon operates almost 400 distribution warehouses in the US alone. And these are no run-of-the-mill post offices.

Many span millions of square feet. Inside, swarms of “Pegasus” robots whizz around carrying stacks of items.

And did you know Amazon has built up a 20,000-strong fleet of delivery vans?

It also owns 60 cargo planes like the ones you see above.

Amazon’s growing “logistics wing” now ships 1 in every 5 deliveries in the US.

And 60% of Amazon parcels are now delivered by Amazon drivers.

UPS, FedEx and Other Carriers Are in Great Danger

As I mentioned, UPS only gets around 10% of its sales from Amazon. While FedEx counts on Amazon for less than 2% of its business.

So many folks conclude Amazon’s creation of its own delivery service won’t hurt these companies too much.

These folks don’t know their Amazon history.       

Back in 2000, Amazon was on its way to dominating online shopping. As its website exploded in popularity, so too did its need for computing power.

So it started renting giant warehouses and packing them full of supercomputers. Its stated intention was to “supplement” its internal need for computing power.

Today that has morphed into Amazon Web Services (AWS)—the world’s largest cloud computing business. Which, in short, involves selling computing power to other companies.

Last year, AWS raked in $26 billion. And get this… it made up 60% of Amazon’s profits!

So it caught my eye when Amazon recently said its growing delivery arm will “supplement” existing delivery methods...

Amazon Already Ships Goods for Third-Party Sellers

Sure, Amazon will first take care of its own delivery needs.

But I’ll bet anything that Amazon will soon start selling its delivery services to others—just like it did with its cloud business.

In fact, Amazon now calls UPS and FedEx competitors in its annual report.

Amazon recently launched its new “Shipping with Amazon” service.

In short, Amazon’s drivers will now pick up packages from “third-party sellers” who sell stuff on Amazon.

It will then deliver that stuff to buyers, cutting out the need for delivery services like FedEx or UPS.

What are the chances Amazon opens up “Shipping with Amazon” to everyone in a year or two?

For my money, it’s a dead certainty.

Can UPS and FedEx Survive?

It’s bad enough that the most disruptive company in history is invading UPS and FedEx’s turf.

It’s even worse that many of America’s most powerful companies are following suit.

The world’s largest retailer, Walmart (WMT), now runs over 6,000 of its own delivery trucks. It has spent over $2.5 billion on its “logistics wing” in the past two years.

Home improvement superstore Home Depot (HD) is investing billions into delivering its own products, too.

UPS and FedEx have a big problem: They are the ultimate “middlemen.”

As my readers know, middlemen can always be cut out.

Don’t be surprised if your UPS guy begins stopping by a lot less...

And delivery guys from Amazon, Walmart, and Home Depot start stopping by a lot more.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules