Amazon wants its own delivery service to rival FedEx and UPS Oct 5, 2017,

Oct 5, 2017,

Amazon is testing a new delivery service that could reduce overcrowding in its factory warehouses and bring two-day Prime shipping to more of its products. Amazon plans to call the program Seller Flex.

Amazon usually leaves last-mile delivery up to third-party partners, including FedEx and UPS, making this yet another move toward reducing its reliance on outside entities and vertically integrating its logistics chain.

What is Seller Flex?

Seller Flex’ is a program which is intended to share Amazon’s best practices in warehousing, inventory management, and shipping with the sellers. This way, sellers have greater flexibility and growth in their expertise. It is mainly for the sellers who have availed (Fulfillment by Amazon, an Amazon warehouse) option. This program helps sellers to minimize the cost to transporting their goods to Amazon warehouse and taking back non-moving products from warehouse. It will also help Amazon to get rid of certain tax issues imposing by certain states. However, this program is not yet launched officially and not available to all the sellers and this service is under trial.

The service started in India two years ago, and Amazon is secretly preparing to expand the service to the US. It’s already started on a trial basis near the West Coast and will come to other states next year, according to Bloomberg. Amazon plans to call the program Seller Flex.

“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.

What happened? based on a report by Bloomberg’s Spencer Soper:

  • Amazon is testing a new service that would allow the company to oversee the transport of vendor packages from warehouse to customers’ homes.
  • The service, dubbed “Seller Flex,” is in a pilot phase in West Coast states, but Amazon plans to expand it in 2018.
  • Seller Flex seeks to help Amazon boost the number of goods eligible for its Prime free two-day delivery and free up warehouse space,

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