Can Amazon eliminate the competition by grabbing t

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With the continuous expansion of the platform business in recent years, in order to reduce the dependence on the delivery of United Parcel, FedEx, USPS and other companies, Amazon continues to increase the construction of its own logistics network. At the beginning of this year, Amazon changed its normal state and made it clear that it will compete with FedEx and others

recently, Amazon launched its own digital freight forwarding platform. According to the statistics of freightwaves, a freight industry research institution, Amazon is cutting the current market price by 26% to 33% to seize market share in some parts of the east coast of the United States, where orders can be launched. The recent price reduction competition has led to the bottom of the price

at present, Amazon's freight forwarding price is far lower than the market price. Freightwaves believes that Amazon entered the freight forwarding industry without considering profits, just to win more market share. Yahoo Finance analyzed and pointed out that although Amazon sacrificed the agency fee, the price below the market can attract more merchants to send. The existence of these problems makes China's plastic machinery industry unable to meet foreign plastic machinery level goods as soon as possible, so as to attract more freight carriers to deliver goods, so as to expand the platform

in fact, with the continuous expansion of the platform business in recent years, Amazon is also increasing the construction of its own logistics network in order to reduce its dependence on UPS, FedEx, USPS and other companies. At the beginning of this year, Amazon made it clear that it would enter a and straighten with FedEx and UPS. It competed with the sample lines made from coils, and added "transportation and logistics services" to the list of competitors for the first time in the annual document. And launched home delivery service Amazon shipping and launched the "delivery service partners" project

in terms of the layout of air transport capacity, it was reported in November last year that Amazon was providing substantial discount services. Compared with FedEx and UPS, its discount was even as high as 50%, so as to attract more sellers to try its pilot shipping services. This year, Amazon air, Amazon's air cargo division, also added 50 aircraft; At the same time, the group's aviation hub construction is still being further expanded. The production capacity of steel bars across the country is much more than 120 million tons. On the other hand, Amazon is also making efforts to build smart logistics and launched a delivery robot called scout for preliminary delivery testing

at the end of last month, when Amazon announced its first quarter 2019 financial report, it said that the company was committed to upgrading the "next day" service to "today's Day". To this end, the group will further invest US $800million in the second quarter of this year. Through this low-cost move to enter the freight forwarding market, Amazon can also lock in the transportation capacity to support its prime member "intraday" service at a certain level

however, while Amazon improves its logistics speed, the pressure on its logistics costs will undoubtedly further intensify, and the proportion of logistics costs in revenue will continue to expand. The continuous increase of logistics costs in the last mile has led to the rise of Amazon's costs faster than its revenue growth. Moreover, the rise in transportation costs may also drag down the business expansion of the group. In terms of freight forwarding business, freightwaves predicts that it may take investors several years to see the profit margin of this business

it is worth mentioning that as an old rival of Amazon, Wal Mart also followed suit and announced the launch of free one-day service. In order not to lag behind Amazon in terms of distribution speed, Wal Mart is also constantly strengthening cooperation with third-party distribution companies to improve its network layout

in addition, in addition to Wal Mart's siege, Amazon has to deal with threats from logistics companies such as FedEx while expanding its logistics network. Compared with these traditional logistics giants, Amazon still has a certain gap in business development maturity, and the group has a long way to go in building its own logistics

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