According to the latest report, a global freight and e-commerce tracking company show that Amazon has surpassed FedEx to become the third-largest package express company in the United States.
Moreover, for many years, FedEx, UPS, and the United States Postal Service have managed the express delivery market in the United States. But the latest report shows that Amazon has shipped more packages than FedEx in 2020. For Amazon, this is a considerable success, because express delivery services are not its main business.
Furthermore, the data show that last year Amazon’s parcel volume grew the most year-on-year, an increase of 127% from the 1.85 billion parcels in 2019. This was followed by the United States Postal Service increased by 34%, FedEx increased by 21.7%, and UPS increased by 12.6%.
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USPS delivered the most packages with 7.6 billion pieces, followed by UPS (4.92 billion pieces), Amazon (4.2 billion pieces), and FedEx (3.25 billion pieces). According to Pitney Bowes, these four companies together account for 99% of the US market. Among them, USPS accounted for 38%, UPS accounted for 24%, Amazon accounted for 21%, and FedEx accounted for 16%.
Besides, Amazon’s rise in the express delivery industry is remarkable because, until 2014, Amazon’s share of the market was zero. Since then, Amazon has invested resources to build a network of warehouses, trucks, airplanes, and delivery drivers. With the strengthening of the transportation network, Amazon gradually took share from third-party shippers such as FedEx.
In the future, it would not be unusual if Amazon will offer its logistics business as a service to brands and retailers. With the expertise gained over the years, Amazon can easily do this.
