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Amazon to Stop Shipping Services from June Due to COVID-19
The Amazon Shipping service was launched by the global e-commerce leader in 2018, offering its delivery service to third-party merchants that sell on Amazon’s site
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CIO Applications | Friday, April 17, 2020

The Amazon Shipping service was launched by the global e-commerce leader in 2018, offering its delivery service to third-party merchants that sell on Amazon’s site
Fremont, CA: e-Commerce giant Amazon is planning to temporarily shut down its Amazon Shipping delivery service in the U.S. starting from June. As a result, the New York Stock Exchange has registered an increase in the price of rival package delivery service providers. Shares of FedEx and UPS have increased by 8.27 percent and 6.32 percent, respectively. The shares rose after Amazon suspended its service for non-Amazon packages. Despite the announcement, Amazon's stock closed higher by 1.56 percent.
The Amazon Shipping service was launched by the global e-commerce leader in 2018, offering its delivery service to third-party merchants that sell on Amazon’s site. Since then, the shipping service has expanded to a few U.S. cities, including New York and Chicago. Amazon has decided to stop its shipping service due to the rising demand for daily essentials, and the COVID-19 lockdown continues. The company has shifted its focus from delivering non-essential items to meet the demand for online groceries and other household items. The Jeff Bezos owned company has directed its people and the capacity to manage the surge in customers’ orders during this crucial time.
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Since the outbreak of the pandemic, the retail sector has seen significant changes. The first one was the triggering of panic shopping among customers due to the lockdown. To tackle with this situation, retail stores have hired new employees. Amazon has also hired 100,000 more workers for warehouse and delivery jobs to serve customers amid the COVID-19 crisis. The company has also partnered with Lyft to increase its warehouse and delivery staff to meet the overwhelming demand for daily essentials.
Similarly, Walmart has also decided to hire around 150,000 temporary workers in the U.S. due to the increased demand for essential commodities. Walmart also intends to increase its online sales amidst the COVID-19 pandemic to take the lead in the e-commerce sector. However, Amazon continues to dominate the U.S. market, with a 38 percent market share.
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