FedEx Freight prices: Amazon or a blessing in disguise
according to the New York Times reported that the United States Federal Express Corporation (FedEx) announced last week that it would change the pricing policy. Under the new policy, FedEx not only according to the weight of the delivered goods against payment of freight, but also will be charging depending on the space. Many analysts believe Amazon will be the biggest victim. Shipping costs have eroded the Amazon meager profit margins, and any Internet shoppers know, Amazon has a habit: separate the commodities of the same order, are assembled into the mega-box delivery, and offers two business days free shipping.
However, FedEx needs to Amazon, which takes more than Amazon's need for Federal Express. FedEx prices--U.P.S. the company may also agree to move--which could further strengthen the position of Amazon in retailing, once again hurt the small online retailers.
the rationale for this, the main reason is that standard shipping rates do not apply to Amazon. Amazon can separate consultation with the shipping company such as FedEx rates. Because of the large volume of business in the Amazon, it can often be an enviable shipping rates.
in other words: FedEx would give Amazon a substantial discount, but also does not want to lose the large customers of Amazon.
"when the change occurred when big companies do better because they can use their influence to negotiate. "E-commerce service provider ShopRunner, Chief Strategy Officer of the company feiaona·diyasi (Fiona Dias) said. "Small retailers have no such influence. "
small retailers can obtain discounts from carriers, but discounts are unlikely.
United States long island, New York e-commerce Singer22 founder Jon Singer said U.P.S. changes in pricing policies, Singer22 may try to use small boxes to deliver more goods, but he will not begin to charge shoppers more shipping charges. Finally, he said, "we will have to accept. "
environmentalists, businesses use more smaller cases are likely to be a good thing. But for small online retailers, small boxes will actually lead to increased costs, because they need to buy more boxes of different sizes. Now, they often buy several small box.
"you will have to take into account air, custom box or buy more, and therefore more expensive, because you need to store all of these dimensions of the box. "Dias said.
is against FedEx, Amazon has notified FedEx and other shipping companies, Amazon may not need their services as before.
Amazon's own delivery of goods, and often sent out on the same day. In addition, Amazon also each provided with lockers, allow shoppers to extract items they ordered. Amazon even uses remote-controlled aircraft to deliver goods. On Thursday, Amazon announced the expansion of United States Postal Service (United States Postal Service) collaboration, which will free delivery to more cities on Sunday.
in order to master the control of transit time and price, other Internet companies, including eBay, Uber and Google, are trying the same day delivery. Wal-Mart by giving customers in lockers and pickup merchandise in the store to avoid paying shipping.
ultimately, consumers will foot the Bill for higher freight rates, even if they don't know it. In order to retain customers, retailers are likely to increase the price of their goods, rather than raise the price of shipping.