Amazon developing own delivery service

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Anonymous sources have informed news site Bloomberg that Amazon is planning to launch its own US delivery service, ‘Seller Flex’, which has been designed to ease overcrowding in its warehouses and make more items eligible for two-hour delivery.

Research for the US pilot project reportedly began in India two years ago, with Amazon now in discussions with US sellers ahead of a national rollout in 2018.

The sources said that through the service, Amazon will manage parcel delivery from warehouses of third-party sellers to the customer’s delivery address, a role until now performed by delivery partners such as FedEx and UPS.

Bloomberg’s Spencer Soper noted that the relationship between Amazon and its delivery partners may well continue, though the e-commerce company would gain more control over how a package is sent.

He added that this would give Amazon more flexibility and control over the final mile to customers’ doors – opening up opportunities for volume discounts – and help it streamline its warehouse inventory operations, by having external sellers store their goods in their own facilities.

“Amazon’s final-mile efforts reflect a logical extension of its model as it builds network density,” Benjamin Hartford, a Robert W. Baird analyst, told Bloomberg.