Forget the Last Mile, Amazon.com Now Wants to Own the First Mile, Too
Last month, USA Today reported that Amazon Logistics' Beijing Century Joyo Courier Service has delivered over 5,300 shipping containers from overseas in the past year. It said that customers can use Amazon's service to ship goods across the Pacific to arrive at a U.S. port, or they can sign up for full end-to-end package delivery and have their goods brought to Amazon's distribution centers, and ultimately right to the customer.
Keeping the package entirely within Amazon's ecosystem gives it a huge competitive edge. "There is no Walmart ocean freight," Michael Zakkour, an executive vice president with Tompkins International, a consultant for the supply chain industry, told USA Today. Moreover, Amazon would gain crucial insights into the wholesale costs of its suppliers, giving it leverage as it would also be one of their competitors.