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Cost is only part of the equation. For Amazon customer service is a primary driver. UPS and FedEx both have terrible customer service reputations. USPS isn't an
by spiralpolitik 11y ago
Cost is only part of the equation. For Amazon customer service is a primary driver. UPS and FedEx both have terrible customer service reputations. USPS isn't any better.
By setting up their own distribution networks they control the entire chain from first click to final delivery, and to Amazon that is equally important as cost.
It also allows them innovate in an area that is sorely lacking innovation, all under their control.
This is the lesson of the new economy. You have to control all contact points with the customer. If you don't, you are letting a third party "sell" your brand which never works in your interest.