Amazon delivers a big upset to the American logistics sector. As of August 2019, Amazon had delivered 46% of American packages bought through e-commerce using Amazon Logistics, becoming a real threat to UPS and FedEx, which may be overtaken in terms of shipping by Amazon in the future. It will be interesting to see what approach UPS and FedEx will take to combat this.

Whether Amazon will be able to expand similarly in the European market remains to be seen. Amazon currently ships more than 2.5 billion packages annually. According to investment bank Morgan Stanley, the profits from shipping tell us that the company can use technology in its favour. Experts predict its further logistical growth even outside of its Internet platform. Why is this all but necessary for the company? The answer lies in the company’s shipping costs, which present a 40 billion dollar spend, about half of its retail gross profit. This is why managing these heavy costs is crucial to Amazon’s future profitability. Find out here: http://bit.do/fpVwq