Dive Summary:
- Retailers across the U.S. are tinkering with their e-commerce services aiming to boost profits which could decrease demand for package delivery from outside companies like UPS and FedEx.
- A growing number of retail merchants are building distribution warehouses closer to current consumers to cut millions in overhead, particularly on long distance shipping.
- "UPS and FedEx are not only watching this, they are likely concerned about it," said Lou Tapper, an executive with Longistics, a third party logistics company.
From the article:
Ship from store may be a problem for UPS and FedEx in five to 10 years, but it will take some time for lots of retailers to figure how to make the strategy work well at high volumes, according to Fiona Dias, chief strategy officer at ShopRunner.