Amazon Tests Delivery Service in Threat to FedEx and UPS

Amazon is testing a new delivery strategy by overseeing deliveries directly from third-party merchants to customers, bypassing its own warehouses. This approach aims to enhance efficiency and reduce costs, which currently account for a significant portion of Amazon's revenue. The company is also exploring ways to streamline its existing infrastructure, including the use of robots and direct postal service integration. The experiment could lead to significant cost savings and operational improvements.

What is the new delivery strategy Amazon is testing?

• Partnering exclusively with FedEx

• Using drones for all deliveries

• Overseeing deliveries directly from third-party merchants' facilities

• Expanding their warehouse network

How does Amazon plan to enhance efficiency with its new approach?

• By building more warehouses

• By using only electric vehicles

• By leveraging the infrastructure of delivery partners

• By reducing the number of delivery partners

What percentage of Amazon's revenue was spent on package sorting and transportation last year?

• 25%

• 20%

• 12%

• 5%

What is Amazon experimenting with to streamline the delivery process?

• Delivering only during weekends

• Skipping the step of bringing goods to their warehouses

• Using a single delivery partner

• Using only robots for delivery

What is the potential benefit of Amazon's new delivery experiment?

• Improved efficiency

• Higher costs

• Increased delivery time

• Reduced customer satisfaction