Amazon could be about to start shipping containers (really)
Evidence has emerged that Amazon.com Inc., could be about to get into the freight business and start shipping container loads of goodies across the seven seas.
The ‘evidence’ comes via The Register, which spotted this blog post from Ryan Peterson, CEO of a freight shipping company called Flexport. In his post, Peterson reveals he’s stumbled across a filing that Amazon, via a Chinese subsidiary, made with the U.S. Federal Maritime Commission to register as a freight provider.
According to Peterson, by registering as a freight provider Amazon will be able to ship cargo from China to the U.S. using its own vessels, giving it a direct line of its own from China’s cheap and cheerful manufacturers to the world’s most lucrative consumer goods market.
Peterson says that China’s suppliers would just love to be able to access the American market, but the expensive cost of shipping freight over the Pacific pits off U.S.-based firms that sell their wares on Amazon.com
“As the freight forwarder on a company’s shipments, Amazon would see both the name of the supplier and the wholesale price paid by the importer,” Peterson explains. “For most of the more than 40,000 sellers currently earning over $1 million per year selling products on Amazon, this data is too sensitive to entrust with a company that is both a primary distribution channel and a ruthless competitor.”
The shipping expert speculated that if Amazon does embark on its own shipping operation, it would be able to reduce its shipping costs drastically. Peterson reckons that Amazon would follow its usuall playbook and operate razor thin margins on its freight business. And as well as enjoying premium shipping rates, it would also be able to link directly to its established supply channels in the U.S. In addition, Amazon can use its own expertise in software to automate the logistical processes, Peterson says.
Ultimately, by combining its freight business with its fleet of cargo planes and its network of fulfillment centers, “Amazon will be able to build a world class logistics platform for small and medium sized Chinese businesses,” he said.
The Register emailed Amazon for comment on its proposed freight business, but the retailer said it “had nothing more to share” at this present time.
Image credit: Skitterphoto via pixabay.com
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