Shipping with Amazon key to breaking trillion-dollar barrier, says ParcelHero

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Delivery comparison site ParcelHero believes that Amazon is primed to become the world’s first trillion-dollar company following the launch of its end-to-end delivery service, Shipping with Amazon (SWA).

In February, The Wall Street Journal reported that Amazon would roll out the delivery service to third-party merchants before making shipping services available to anyone and everyone.

David Jinks, head of consumer research for ParcelHero, said, “Together with its fast-growing cloud network, huge warehouse expansion program and increase in services such as TV and even healthcare, Amazon is barreling toward becoming the world’s first trillion-dollar company.

“Amazon’s multi-channel approach to retail and services means is able to rise above the challenges that saw its rivals Toys R’ Us and Maplin falter last week, and New Look looking to shed around 60 stores.

“Amazon competes in all those sectors, and yet is even opening physical stores as rivals collapse around it. What sets it apart is that it has become an entirely new kind of business. It’s now an e-commerce store, a high street retailer, a logistics provider, a cloud computing provider, a broadcaster and you can even use it to book a plumber.”

The impact of Amazon Logistics deliveries in the UK is already significant with the company possessing at least a 7% share of the UK delivery market. To put that into perspective, Yodel has roughly 8% and Hermes accounts for approximately 11%.

“Little wonder news of the launch of Amazon’s next phase, SWA, wiped 1% off the value of Royal Mail in a single day,” added Jinks.

“The real scope of Amazon’s ambitions is revealed in its China operations, where it has launched Amazon Logistics+. Any wholesaler can use Amazon to ship goods around the world by sea, land or air, not just Amazon sellers. Exactly as SWA will do for anyone wanting to send a parcel in the USA and UK.

“Right now, it looks as if it’s a straight race between Apple and Amazon as to which becomes the first ever member of the trillion-dollar club. Apple’s market cap was US$887bn on March 2, still outgunning Amazon’s US$772bn. But Apple can’t hope to match the breadth of Amazon’s products and services. It’s going to be a fascinating battle,” concluded Jinks.

March 6, 2018

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Dan originally joined Parcel and Postal Technology International in 2014 having spent the early years of his career in the recruitment industry. As online editor, he now produces daily content for the website and supports the editor with the publication of each exciting new issue. When he’s not reporting on the latest technological developments, Dan can be found on the golf course or apprehensively planning his next DIY project.

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