Fintech & Ecommerce

Amazon Launches In-House Shipping Service After Hiatus

Amazon announced the resumption of the process of functioning of the shipping service, which was suspended during the coronavirus pandemic.

Amazon Launches In-House Shipping Service After Hiatus

The e-commerce giant has resumed Amazon Shipping. This service allows the company to compete with firms such as UPS and FedEx. Amazon Shipping provides sellers with the opportunity to send orders placed on the virtual platform of the e-commerce giant or goods presented on other sites.

This service was suspended in 2020. At that time, the company focused on ensuring the functioning of its digital trading platform. As part of solving this problem, the e-commerce giant focused on the settlement of the situation of staff shortage and strengthening efficiency against the background of the explosive growth of consumer activity in the virtual space.

Amazon representative Olivia Connors said that the company is constantly developing innovative solutions to support the firm’s sales partners. She also described Amazon Shipping as an option for fast delivery of parcels to customers at a minimal cost.

Last week it became known that the e-commerce giant plans to introduce a new fee for third-party sellers who are not consumers of its logistics services. In October, merchants who deliver goods to customers on their own will pay the company a commission fee of 2% on each transaction. This pay will become an additional financial burden. Currently, sellers are already paying fees for the possibility of operating on the digital platform of the e-commerce giant.

The new solution, which will come into force in October and will become an additional financial burden for merchants, according to media reports, was negatively evaluated by sellers, who stated that in this case the company deliberately creates a pressure factor, forcing them to use brand logistics. Amazon, as part of its rhetoric during this discussion, argues that the fee is a necessary measure to cover the costs of maintaining an acceptable state of a separate infrastructure and determining its effectiveness.

The company’s CEO, Andy Jassy, said in August that the e-commerce giant has achieved achievements in the reformatting of a single network into separate service regions.

As we have reported earlier, Amazon Reports Increase in Online Sales in Second Quarter of 2023.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.