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Will Amazon convert Shipping Expense into Profit?

Amazon is poised to become the second-largest package delivery carrier in the United States, perhaps transforming a cost into a profit centre.

In 2021, Amazon’s burgeoning logistics service had a 22% share of the U.S. small parcel delivery market by volume, making it the third-largest carrier in the American market, according to a May 23, 2022, Pitney Bowes report.

This report states that Amazon’s network — made up of company-owned facilities and vehicles, an army of delivery service partners, and Uber-like Flex drivers — moved about 4.8 billion boxes and envelopes in 2021.

Amazon delivered more parcels in 2021 than FedEx in the U.S. — a significant milestone. Several transportation analysts doubted Amazon could do it.

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