Amazon presses pause on Amazon Shipping in the US

Amazon operating income 9%

Amazon, according to CNN Business, has announced that it is halting its third-party shipping service in the US, which competed with FedEx and UPS.

The service called Amazon Shipping has been piloted in a handful of US cities. Amazon would pick up and deliver shipments on behalf of third-party companies that sell on its sites but do not store products at Amazon warehouses. However, after a series of regular reviews the company came to the decision to pause the service.

The pause comes amid a surge in business for Amazon, and e-commerce more widely, as brick-and-mortar stores close due to lockdown procedures during the coronavirus pandemic. In March, Amazon announced that it was hiring 100,000 new distribution workers to help manage demand. It also warned customers there may be longer-than-usual delivery time because of the large volume of orders.

Amazon has also announced it would limit the shipment of non-essential goods coming into its warehouses to make room for crucial household and medical products.

Amazon Shipping is available in the UK, where it will continue to operate.

Source: CNN Business

 

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