Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Amazon Overtakes UPS and FedEx to Lead U.S. Private Logistics Market

Eugene Park Views  

Amazon Surpassed 5 billion packages last year
Massive investment started a decade ago after the logistics crisis

Amazon, the world’s largest e-commerce company, has claimed the throne of the U.S. private logistics market. A decade after building its logistics network, Amazon has surpassed traditional logistics giants UPS and FedEx. It is expected to consolidate its top position further by widening the gap with these companies.

On the 27th (local time), The Wall Street Journal (WSJ) reported, citing documents it obtained, that Amazon’s shipments last year reached 5.2 billion, surpassing UPS to become the top private logistics company in the U.S. regarding parcel delivery volume. While the U.S. Postal Service still leads in total parcel delivery, Amazon tops the list among private companies. Amazon surpassed FedEx in terms of delivery volume as early as 2020.

According to WSJ, UPS delivered 5.3 billion parcels last year. Still, since some of these shipments went through the U.S. Postal Service, the assessment is that UPS delivered fewer parcels than Amazon. FedEx delivered 3.4 billion parcels in the 2022 fiscal year (June 2021 to May 2022) and 3.3 billion in the 2023 fiscal year (June 2022 to May 2023). Like UPS, FedEx also utilized the U.S. Postal Service network for some of its deliveries.

The main factor that enabled Amazon to surpass traditional logistics giants was its investment in its logistics network, which began in 2014. After a logistics crisis during the 2013 holiday shopping season, when orders piled up, and logistics companies failed to deliver on time, Amazon realized the importance of a logistics network and began to build its own.

Despite this, Amazon was no match for UPS and FedEx in the early stages of its logistics network investment. In 2016, Fred Smith, then-CEO of FedEx, laughed off speculation that Amazon was a threat to logistics companies, saying it would be “a huge deal” if that were the case. At the time, Amazon ranked third in logistics, behind UPS and FedEx.

Reuter/Yonhap

Turning Point Amid the Pandemic

However, the atmosphere changed just before the COVID-19 pandemic. As Amazon showed growth, FedEx stopped delivering Amazon’s e-commerce goods in 2019. Yet, less than a year later, FedEx fell behind Amazon in delivery volume by 2020.

Amazon has grown at an even faster pace amid the COVID-19 situation. As the demand for e-commerce goods expanded during the pandemic, Amazon doubled the size of its network from 2020 to the end of 2021 and strengthened its logistics network by localizing it to increase delivery speed and profitability. WSJ reported, “As Amazon has grown its logistics network and increased its delivery volume in recent years, FedEx and UPS have focused more on increasing profitability per delivery.”

Amazon’s Rapid Growth

Amazon plans to solidify its position as the top private logistics company in the U.S. further this year.

As of November 23, just before Thanksgiving, Amazon has delivered over 4.8 billion parcels this year and projects to reach 5.9 billion by the end of the year, marking an increase of more than 13% from last year. UPS reported that from January to September this year, its U.S. parcel delivery volume hit 3.4 billion and is expected to fall short of last year’s record of 5.3 billion.

However, some point out that while Amazon has surpassed the two companies in the U.S. residential parcel delivery sector, it still has to catch up with them in global business and other sectors. Brian Ossenbeck, an analyst at J.P. Morgan, said, “While Amazon has well-established one-way networks that deliver goods quickly, it is not building the same level of pick-up or delivery range.”

By. Jeong Hyun Jin

Eugene Park
content@www.kangnamtimes.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • El Salvador's Bitcoin Reserves See $25 Million Surge After Trump’s Win
  • Who Is Susie Wiles? Meet Trump’s Loyal ‘Ice Baby’ and First Woman Chief of Staff
  • Trump’s 2nd Term Family Drama: Lara and Don Jr. Take Center Stage, Ivanka Steps Aside
  • Boston Dynamics’ Atlas Robot in Hot Dog Costume Stuns with Human-Like Skills
  • With $180M in Support, Musk Backs Trump’s Victory—And Makes It Meme-Worthy
  • Swifties and Celebrities Left Reeling After Trump’s Election Win

Weekly Best Articles

  • 2026 Toyota RAV4: Bigger, Bolder, and Hybrid-Only—Is It the Future of SUVs?
  • Byeon Woo Seok’s Hot Streak Continues—Wins Hot Character Award for the Sixth Consecutive Month
  • Jung Hae In Gets Personal: Family First and Thoughts on Marriage Revealed
  • Min Hee Jin Faces $3.6 Million Lawsuit Over ‘False Claims’ About NewJeans Management
  • NewJeans Makes Waves in Japan: ‘Supernatural’ Nominated for the Prestigious Japan Record Award
  • Bruno Mars and Rosé Set to Steal the Show at 2024 MAMA Awards with ‘APT.’ Performance
  • How Honda’s Edix MPV Turns a Compact Design into a Spacious 6-Seater – You’ll Be Shocked
  • Is Elon Musk’s Trump Support Killing Tesla’s Brand? Truth Behind the Sticker Backlash
  • Is China’s Xiaomi SU7 a Road Warrior or a Circuit Breaker? Shocking Track Failures Revealed
  • Lee So Ra Reacts to Unexpected Exit from ‘Supermarket Sora’ Show
  • Lee Min Jung Gets Into the Holiday Spirit Despite Busy Filming Schedule
  • Kim Junsu to Pursue Legal Action Against Malicious Rumors Following Extortion Incident

You May Also Like

  • 1
    Kim Junsu to Pursue Legal Action Against Malicious Rumors Following Extortion Incident

    ENTERTAINMENT 

  • 2
    Chae Soo Bin’s Surprising Hobby? Lying Down and Eating Cereal to Recharge

    ENTERTAINMENT 

  • 3
    BTS’s Jin Reveals How His Military Experience Influenced His Music Career

    ENTERTAINMENT 

  • 4
    Lamborghini's New Icon: The Revuelto Opera Unica Tailored for China

    TECH 

  • 5
    Toyota and Subaru's Engine Woes Lead to Multi-Million Dollar Lawsuit

    TECH 

Popular Now

  • 1
    Classic Meets Contemporary: Inside Modena’s Maserati Shamal Restomod

    TECH 

  • 2
    Hong Seok Cheon Strikes Back: Celebrity Warns Fans Against Impersonators

    ENTERTAINMENT 

  • 3
    Han Hye Jin Flaunts Timeless Charm in Latest Beachside Snaps

    ENTERTAINMENT 

  • 4
    Kang So Ra Overwhelmed with Pride at Daughter’s Adorable Recital Moment

    ENTERTAINMENT 

  • 5
    Lovelyz's Jiae and Yein Spill on Their Whiskey Nights and Soju Secrets

    ENTERTAINMENT 

Weekly Best Articles

  • 2026 Toyota RAV4: Bigger, Bolder, and Hybrid-Only—Is It the Future of SUVs?
  • Byeon Woo Seok’s Hot Streak Continues—Wins Hot Character Award for the Sixth Consecutive Month
  • Jung Hae In Gets Personal: Family First and Thoughts on Marriage Revealed
  • Min Hee Jin Faces $3.6 Million Lawsuit Over ‘False Claims’ About NewJeans Management
  • NewJeans Makes Waves in Japan: ‘Supernatural’ Nominated for the Prestigious Japan Record Award
  • Bruno Mars and Rosé Set to Steal the Show at 2024 MAMA Awards with ‘APT.’ Performance
  • How Honda’s Edix MPV Turns a Compact Design into a Spacious 6-Seater – You’ll Be Shocked
  • Is Elon Musk’s Trump Support Killing Tesla’s Brand? Truth Behind the Sticker Backlash
  • Is China’s Xiaomi SU7 a Road Warrior or a Circuit Breaker? Shocking Track Failures Revealed
  • Lee So Ra Reacts to Unexpected Exit from ‘Supermarket Sora’ Show
  • Lee Min Jung Gets Into the Holiday Spirit Despite Busy Filming Schedule
  • Kim Junsu to Pursue Legal Action Against Malicious Rumors Following Extortion Incident

Must-Reads

  • 1
    Kim Junsu to Pursue Legal Action Against Malicious Rumors Following Extortion Incident

    ENTERTAINMENT 

  • 2
    Chae Soo Bin’s Surprising Hobby? Lying Down and Eating Cereal to Recharge

    ENTERTAINMENT 

  • 3
    BTS’s Jin Reveals How His Military Experience Influenced His Music Career

    ENTERTAINMENT 

  • 4
    Lamborghini's New Icon: The Revuelto Opera Unica Tailored for China

    TECH 

  • 5
    Toyota and Subaru's Engine Woes Lead to Multi-Million Dollar Lawsuit

    TECH 

Popular Now

  • 1
    Classic Meets Contemporary: Inside Modena’s Maserati Shamal Restomod

    TECH 

  • 2
    Hong Seok Cheon Strikes Back: Celebrity Warns Fans Against Impersonators

    ENTERTAINMENT 

  • 3
    Han Hye Jin Flaunts Timeless Charm in Latest Beachside Snaps

    ENTERTAINMENT 

  • 4
    Kang So Ra Overwhelmed with Pride at Daughter’s Adorable Recital Moment

    ENTERTAINMENT 

  • 5
    Lovelyz's Jiae and Yein Spill on Their Whiskey Nights and Soju Secrets

    ENTERTAINMENT 

Share it on...