Specialist
Former regional director at Amazon.com
Agenda
- Growth trajectory for Amazon (NASDAQ: AMZN) Fulfillment Services
- Coronavirus impacts on parcel carriers
- Parcel volume outlook
- Outlook for H2 2020 into 2021
Questions
1.
What are your thoughts on today’s operating environment for e-commerce, last-mile logistics and fulfilment generally? What dynamics are at play, given the impacts of the coronavirus which took hold in H1 2020?
2.
How would you say Amazon has changed the fulfilment services landscape? Do you think the company is already causing the bulk of its disruption? Do you foresee further disruption due to Amazon’s entry?
3.
How could Amazon’s fulfilment partners be affected as Amazon Fulfillment scales? How could dynamics with UPS and FedEx evolve as the offering gains volume?
4.
How might Amazon react if UPS placed coronavirus and additional holiday surcharges on parcel deliveries, compensating for the unexpected off-peak demand spike and corresponding cost increases? How much pricing power do you think UPS has in its relationship with Amazon?
5.
What’s your take on the long-term development of the Amazon-UPS relationship? As we discussed, Amazon is early days in gaining the scale needed to take on its own volumes. Could Amazon reduce its UPS spend in the long term? Would the transition be gradual or all at once?
6.
Could you estimate the cost for Amazon to ship a package via its own logistics network vs UPS? Could Amazon significantly reduce its costs by fulfilling its own packages?
7.
You suggested we should expect Amazon to over time open up its fulfilment platform to third-party e- commerce retail sellers, beyond pricing UPS and FedEx out of the market. Could players such as UPS and FedEx experience downward pressure or market share loss due to Amazon’s cost advantage?
