• Retail Dive

Amazon Logistics now ships more US parcels than FedEx: Pitney Bowes

Dive Brief:

  • Amazon's market share for U.S. parcel volumes jumped to 21% in 2020 following years of rapid growth, placing it ahead of FedEx and just behind UPS, according to the Pitney Bowes Parcel Shipping Index.

  • Revenues and volumes for all major parcel carriers surged last year due to the COVID-19 pandemic driving more demand for e-commerce shipments. But Amazon Logistics' growth in both categories has outpaced FedEx, UPS and the Postal Service every year since 2014, according to Pitney Bowes.

  • "It is a time of disruption, which is providing opportunities across the board for lots of different types of players who you haven't seen in this space before, from Amazon Logistics all the way down to the last-mile delivery, crowdsourcing engagements that are starting now," said Jason Dies, executive vice president and president of sending technology solutions at Pitney Bowes.

Dive Insight:

Amazon Logistics' growing presence has put a dent in the parcel duopoly's market share, but the market remains highly consolidated despite the growing popularity of other delivery options like regional carriers. Options outside of FedEx, UPS, the Postal Service and Amazon make up just 1% of market share, according to Pitney Bowes.

But there could be opportunities for upstart players going forward, Dies said. Amazon's delivery focus remains with its in-house volume, and FedEx and UPS have become more selective, prioritizing more profitable B2B and small business shipments over a deluge of home delivery volume.

Smaller players like Pitney Bowes — which is shifting its focus to lightweight parcels — have also adjusted their strategies.