Amazon is delivering nearly two-thirds of its own packages as the COVID-19 pandemic is not showing any signs of slowing down.
As per data from ShipMatrix, Amazon shipped 415 million packages in the month of July with a monthly average of 389 million between April and June, during which the virus peaked. It also delivered a whopping 66 percent of its own packages in July, which was an increase of 5 percent between the April-June period.
This indicates that the COVID fueled online sales are still on a growth trajectory as in the second half of the year as July package volumes exceeded the average monthly volume in the first three months of the outbreak.
The founder of ShipMatrix, Satish Jindal said, “Amazon is such a huge player in the e-commerce space, they have to manage their delivery themselves to handle the increased demand for online orders, especially during the pandemic. They will continue to deliver more of their own packages, potentially reaching 80% of their own packages by next year. It means UPS and the [U.S. Postal Service] will be looking for more business to replace the Amazon business.”
Rival companies UPS and FedEx also posted substantial gains as UPS had a volume growth of 26 percent in July, compared to average monthly growth of 23 percent during April – June, with FedEx also showing a 3 percent increase on the same parameter (from 19 percent in the first three months to 22 percent in July)
According to an eMarketer forecast, the third quarter will be the all-time peak for e-commerce with about 23% of all retail purchases being made online.
Jindal commented on an optimistic growth by adding, “E-commerce is continuing to grow because businesses have started to come back and that volume is coming back. This third quarter will definitely surpass the volume of the 2019 holiday season. However, consumers should expect on-time performance to be lower.”