Amazon has told clients of its Amazon Shipping service that the service will be put on hold starting in June, reports The Wall Street Journal. The move is reportedly being made so Amazon can shift all its employees and logistics capacity to delivering packages for its own customers.
Amazon Shipping is a separate business within the company that has nothing to do with fulfilling orders placed by Amazon.com customers. Rather, Amazon Shipping is a separate service designed to ship products for clients who do not sell through any of Amazon’s marketplaces. You can think of Amazon Shipping as the company’s answer to FedEx or UPS—which are its two biggest competitors.
Currently, Amazon Shipping is available to clients in select cities such as Los Angeles. While the suspension of the service come June might derail Amazon’s plans in the short term to become a true FedEx competitor, it goes to show Amazon knows where its main bread and butter comes from: ordinary shoppers who purchase from its online store.
Since the COVID-19 pandemic began spreading across America, Amazon’s shipping times have slipped, which has resulted in even Prime customers seeing their items delayed. Last month Amazon announced it would hire 100,000 workers for its warehouses and delivery service as more customers than ever turned to buying products online instead of risking a trip to the store. The suspension of Amazon Shipping then is just the latest attempt by Amazon to get its core business back on track.