Just over 2-years since Amazon first detailed its in-house delivery service, new reports today point to the online giant backing off its plans of competing with UPS and FedEx. Amazon Shipping is slated to be paused starting in June, according to reports, as the fallout from COVID-19 continues to reach all areas of our daily lives. With an eye on cutting out the competition from its supply chain, Amazon has long had eyes for developing an end-to-end solution for its e-commerce shoppers. However, given the current climate and Amazon’s strains in other areas at this time, it makes sense that this change is on the horizon. Hit the jump for everything we know at this time and a few potential scenarios for how this will play out over the course of 2020.
Amazon set to delay its in-house shipping service
Amazon Shipping slowly rolled out over the course of the last year after first being detailed back in 2018. Its primary focus has been larger markets where same-day delivery is a mainstay. Amazon Shipping has also primarily handled non-Amazon and marketplace purchases over the last year.
In recent months, Amazon Shipping has found itself available in more areas of the country than ever before, especially if you’re within earshot of a major metropolitan area. But with the COVID-19 pandemic reaching all corners of the country’s economy, it’s no surprise that Amazon is having to realign its operations. In fact, it sounds like many of the workers originally assigned to Amazon Shipping will now be reassigned to warehouses as the online giant attempts to meet demand during these times.
How this affects Amazon’s operations in the long-term will not fully be seen for months or maybe until 2021. With the economy in a state of flux and consumer confidence changing by the day, Amazon Shipping isn’t likely to become a focus again any time soon for the popular online retailer.
“We regularly look at a variety of factors across Amazon to make sure we’re set up in the right way to best serve our customers,” an Amazon spokesperson told Reuters in an email confirming the halt in service.
Electronicsforward’ Take
We already know that Prime Day 2020 is slated to be delayed this year, likely being pushed back to August at this point. This is likely just one of many adjustments Amazon will make through the course of this year as it navigates the COVID-19 pandemic. Canceling its shipping initiatives at this point is a logical step but I would venture to guess it will make a return in 2021.
Source: Reuters
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