UPS Continues to Reduce Dependence on Amazon
UPS has continued reducing its dependence on Amazon-related business over the past two years while expanding its other commercial customer base to adjust its business structure.
What are the key facts?
- 1Reduced Amazon-related business over the past two years
- 2Adjusted major-customer structure
- 3Expanded independent commercial parcel-delivery services
What happened?
The report said United Parcel Service (UPS) had continued reducing its dependence on Amazon-related business over the past two years and was adjusting its major-customer structure. Amazon has continued developing its own logistics network in recent years, including its Delivery Service Partner program, with some platform delivery demand handled by its own system and partner network. In response to changes in its customer structure, UPS is expanding its independent commercial parcel-delivery business to reduce its dependence on a single large customer.
The report placed the change in the broader industry trend of traditional parcel carriers adjusting their customer mix. It said logistics companies are rebalancing the relationship between business from large platforms and other commercial customers. The adjustment involves UPS's parcel-delivery and fulfillment arrangements with Amazon, with the core change being the carrier's reconfiguration of customer concentration and business sources.
What does this mean for cross-border sellers?
UPS's reduced dependence on Amazon shows that fulfillment relationships between major platforms and carriers are not fixed. Do not treat the stability of a single logistics channel as a long-term guarantee; otherwise, carrier changes to their customer mix can leave you exposed. Highest priority: this week, verify backup carriers and switching lead times for your main destination countries.