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Trump: Amazon should pay more to use USPS. Bezos: ok, I'll DIY. USPS: uh oh. https://www.google.com/search?q=trump+amazon+pay+more+usps https://www.google.co

• bena 6y ago
  Regardless of all that, this was the logical step for Amazon. The world's most sophisticated logistics company is WalMart. Not because they wanted to be a logistics company, but because by doing their own logistics, they can cut costs. Same thing with Amazon. At some point, shipping all those packages is your last remaining major cost (outside of personnel). The more you can do in-house, the cheaper you can do it. And that's not the only space where they've done this. AWS is basically Amazon selling their infrastructure. Infrastructure they built because at some point it was their biggest cost. Then they reduced that cost by bringing it in-house. Then they turned it into a profit center by selling it. So I don't think this is going to stop at Amazon doing their own deliveries. Soon enough, you will be able to ship items via Amazon. (This is already kind of the case with third party sellers on Amazon, but instead imagine treating Amazon as FedEx or UPS).
  • oblio 6y ago
    > Not because they wanted to be a logistics company, but because by doing their own logistics, they can cut costs. For retail, logistics is core business.
    • Spivak 6y ago
      It's true of large-scale retail which is really what the parent's point is. Small retailers just outsource their logistics to a company like XPO.