News Article

What does Amazon’s Seller Flex Mean for Supply Chain Outcomes?

Either Amazon is looking to disrupt parcel delivery or is merely looking for greater control of its supply chain. Which is it?

Reports that Amazon with Seller Flex is testing an independent delivery service is the latest evidence the e-commerce giant is looking to change supply chain outcomes and transform from a digital marketplace to a more traditional retailer, albeit one empowered by data.

There are other hints. Over the past year, the company has invested heavily in a physical presence, including hundreds of brick-and-mortar stores, dozens of distribution centers and its own air fleet. Now, Bloomberg reports Amazon will take over the responsibility for deciding where, when and how vendor products are shipped.

Yet, most of the stories surrounding the announcement focus on whether Amazon is looking to disrupt parcel delivery, currently dominated by FedEx and UPS. A few note the company is merely looking for greater control of its supply chain? So, which is it?

Based on various reports and comments from industry experts, Supply Chain Dive put together a quick guide explaining the news, what it means for logistics and a few questions going forward.

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Find more about the supply chain outcomes of Amazon’s Seller Flex here.