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Amazon struggling to hit 2-day delivery commitments, consultant says

About 1 million daily Amazon parcels now moving via UPS, Postal Service, Jindel says

Amazon,'s private fleet adds to substantial parcel overcapacity (Photo: Jim Allen/FreightWaves)

Amazon.com. Inc. is struggling to handle some of its own two-day deliveries and has turned over about 1 million parcels a day to UPS Inc. and the U.S. Postal Service to meet its delivery commitments, according to a leading consultant.

Satish Jindel, founder and president of ShipMatrix, said Amazon (NASDAQ: AMZN) has shifted more middle-mile shipments to UPS’ two-day delivery service and more last-mile shipments to the Postal Service’s final-mile service, Parcel Select. UPS (NYSE: UPS) and the Postal Service are Amazon delivery partners. Those parcels were originally to move on Amazon’s network.

Much of the problem is occurring “upstream” where Amazon’s longer-haul middle-mile network resides, Jindel said. The lengths of haul of the shipments now being handled by UPS vary, he said.

The issues have nothing to do with the performance of Amazon’s last-mile drivers or the contractors, known as Delivery Service Providers, that employ them, he said.


Jindel, who went public with the comments after what he said were conversations with multiple Amazon stakeholders, estimated that the number of parcels affected is in the single-digit percentage range. Amazon handles about 16 million parcels per day, according to ShipMatrix estimates.

Amazon offers a broad range of delivery options, notably one-day shipping and its traditional mainstay of two-day shipping. It also makes different delivery commitments to members of its Amazon Prime ordering and delivery service, which includes unlimited two-day deliveries, and non-Prime users. The different offerings spawn variability and complexity, which adversely impacts Amazon’s delivery reliability, Jindel said. The problems are amplified by Amazon’s massive and burgeoning delivery volumes, he said.

In a statement, Amazon said that “delivery promises fluctuate based on a variety of factors including time of day, transportation capacity, regional demand, and customer location. No customers have lost 2-Day Shipping benefits.”

Amazon’s problems began around the middle of November and were unrelated to the company’s two-day fall Prime Day event in mid-October.


17 Comments

  1. Pam Dugan

    Okay…so Amazon says it’s the other guys’ fault. so why are they having so much trouble fulfilling their commitment to Amazon? And what is this last mile stuff….when you change shippers mid transit, you are asking for trouble. And the USPS is already too overloaded with their own work. Are there really no workers who are willing and actually able to work any more?

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.