Amazon Joins Middle-Mile Logistics

By Reagan Payne

When the public thinks of Amazon delivery, Prime comes to mind for most. They have recently been notorious for their last-mile delivery; whether it be by an unmistakable delivery van bearing the company’s smiley-face arrow logo or an experimental drone, Amazon prides itself in unique delivery solutions.

But what would an unmatched e-commerce corporation be without streamlining every inch of the delivery process? Amazon is now quietly dipping its toe into middle-mile delivery. This component is the trucking of goods between Amazon warehouse facilities, manufacturing centers, and ports.

By the end of 2019 Amazon was shipping more than two-thirds of the freight between company facilities in the U.S. This new Amazon program helps small independent trucking companies book jobs. The company is now able to keep its business away from big third-party freight brokers, which were hauling the vast majority of its freight just two years earlier.

In the true spirit of competing with freight brokers, Amazon offers an in-house driver training program. This is surely an expensive effort but might prove to be well worth it. Amazon’s shipping costs are up 46% from last year. It is no wonder the powerhouse is looking to gain more control over logistics and shipping.

Being more in control of its spending on logistics is obviously a keystone reason for this strategic move. Not only can Amazon now avoid paying third-party freight markups, but it can utilize its excess delivery capacity and steal away business from other delivery companies. Any unused truck or trailer is a missed dollar; Amazon did not become the giant it is today by missing out on dollars.

This move is smart for cost-effective reasons as well as solidifying brand identity across the nation. Not only are the smiley vans becoming even more prevalent, but more jobs have been created for the American people.

Reagan Payne is a staff writer for Wright Media. She can be reached at rpayne@wrightmediacorp.com