retail news in context, analysis with attitude

by Kevin Coupe

Want evidence of Amazon's increasing power?

CNBC reports that Morgan Stanley estimates that Amazon Logistics, the company's in-house logistics operation, "will reach a volume of 6.5 billion packages per year by 2022, far exceeding its estimate for UPS at 5 billion packages per year and FedEx at 3.4 billion packages per year … Amazon is already delivering about half of its own packages in the U.S., according to a Morgan Stanley estimate on Thursday, and will soon pass both United Parcel Service and FedEx in total volume."

Wow.

Some more context: "The firm says Amazon Logistics is more focused than its competitors on densely populated areas. According to Morgan Stanley’s estimate, about 61% of Amazon Logistics’ package volumes are from suburban areas, 28% are from urban areas, and just 11% are from rural areas. That makes Amazon Logistics’ rural focus about half of its competitors, as the rest of the industry typically derives 20% of package volume from rural areas, the firm said."

Now that's an Eye-Opener.
KC's View: