The world of E-Commerce has transformed the shipping industry and way that people shop, especially with the fact that an item can arrive at a doorstep within a few days of purchase. With e-commerce growing exponentially and becoming such a big part in the lives of many, a company called Amazon is now one of the leaders in the industry.
One undeniable fact is the way Amazon has changed the shipping landscape. Before the existence of Amazon, truckers and shippers held sway with weights of goods as the primary determining factor for shipping. The entrant of Amazon has brought about many variables that affect shipping, giving customers many options and flexibility.
Below, we will dive in and consider significant ways in which Amazon has changed the entire shipping industry.
Shipping of Any Size and Weight
Amazon now makes it possible to ship just anything irrespective of the size be it small or big. From a single light bulb to 72 inches flat-screen TV, Amazon gave consumers the flexibility to shipment of varying sizes and weights of items. At the inception of this opportunity, many small packages cost carriers more to deliver due to the charge by weight system.
To create a balance, the American Trucking Association had to come up with two major change. First was to increase the tonnage index and secondly come up with the dimensional weight model. Now, this has become the standard for the industry which has come to stay, especially because many different industries require different types of shipping services and the option for expedited shipping. To learn more about these companies, check out our past article on The 5 Major Industries That Require Expedited Shipping and Logistics Services.
Non-Traditional Delivery Now Possible
Unlike when it’s impossible to get a delivery on non-traditional delivery days such as Sundays, Amazon makes quick deliveries not just on regular days but also on Sundays. To stay competitive in the industry, this has created the opportunity for a niche in which carriers are meeting. Carriers are now delivering on Sundays upon special request. This goes to show that the satisfaction of the consumer/buyer is a very large factor for businesses to seek after, even if it means doing deliveries on the universal “rest” day.
Carriers On The Road On The Record High
No single source has put more carriers on the road than Amazon in the last 5 years. The US Department of Transportation has projected that online shopping will constitute the larger part of the 29 billion tons of freight expected to have been delivered by the year 2040. This means more opportunity and works for both FTL and LTL carriers.
This evolution has given room for more competitiveness among freight companies as regards price and delivery time making the better service offered. There is expected to be more growth for LTL carriers with an expected growth of 11 percent from now to 2022 for truck driver employment. Staying ahead of the impending scarcity of drivers means top companies being positioned to offer the best drivers benefits they can’t get elsewhere, thus influencing the shipping industry even more.
Entry of Drones
Though gradually getting its footing, it is clear that the future of drones as carriers is a bright one and companies that want to stay ahead must be ready to take up the technology to remain relevant as Amazon is taking the lead. Amazon recently introduced what they envision for the future involving these drones: Delivery Drone Beehives. This will be established in every city (according to them), and the future of buying a product online and getting it to your door is starting to look like it will make 2-day express shipping seem like a long time.
So, What Is Next?
Amazon has changed the face of the shipping and logistics industry. Evidently, there is also no sign of them slowing down. To stay relevant and not to miss out, freight shipping and logistics companies should be learning from the Amazon model to step up their game. There will always be opportunities for companies in the industry to grow, but it requires an understanding of the competitor landscape while doing it. Although Amazon may be dominating over thousands of other companies, what other companies have more of are the face to face relationships between business and consumer. Understanding the actual needs and concerns of the consumer goes way beyond receiving a product at the doorstep three days later. However, this is not to discount how big of an impact Amazon has had on the shipping industry.
Although Amazon is changing the game for business to consumer shipping, business to business freight shipping is still needed in the industry. For questions or inquiries on how long it can take for your shipments to get from Point A to Point B, be sure to contact us. We can help answer any questions or concerns you may have for your next big freight shipment!
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