Getty Amazon's Staten Island warehouse.
Amazon announced Tuesday it will suspend a third-party shipping service that aimed to compete with FedEx and UPS. The online retailer, which has been a saving grace for millions of Americans amid the pandemic spread of coronavirus, is putting a pause on Amazon Shipping, which operated in select cities and delivered packages that were not ordered on Amazon.
The company said it was suspending the service in order to focus on its core e-commerce business, which has seen skyrocketing volume amid the coronavirus pandemic.
So, who’s directly affected by the suspension of Amazon Shipping? And when does the suspension start?
Here’s what you need to know:
Packages Ordered on Amazon Will Still Be Delivered
First and foremost, this change does not affect any Amazon Prime packages or regular orders from the online retailer. The Amazon Shipping service was a third-party operation that allowed Amazon drivers to pick up packages from businesses and directly deliver them to buyers, thus removing the necessity of shopping on the Amazon website.
Amazon Shipping, which will be stopped in June, is only available in a few major cities, which means a large number of Americans will not be affected by this move.
Amazon is ‘pausing’ its own shipping service that it was beta-testing in the US — read the memo it just sent sellers (AMZN) t.co/CurA2QNw4k #smallbusiness #education
By suspending Amazon Shipping, the online marketplace will be able to focus on their main delivery business systems. “We regularly look at a variety of factors across Amazon to make sure we’re set up in the right way to best serve our customers,” an Amazon spokesperson told Reuters.
“We understand this is a change to your business, and we did not take this decision lightly,” Amazon said in a note reported by The Wall Street Journal. “We will work with you over the next several weeks so there is as little disruption to your business as possible.”
Amazon Suspended Its 2-Day Shipping Option in March
GettyIs Amazon delivery continuing or stopping during coronavirus crisis?
As the coronavirus sparked doomsday-style shopping in grocery stores across the nation, paying Amazon Prime shoppers believed they could order all their supplies from the online retailer and within the regular guaranteed two-day delivery option. However, on March 25, such a luxury was no longer an option due to the COVID-19 outbreak and the subsequent spike in shoppers purchasing items online that they previously would’ve purchased at their local markets.
Amazon said in a statement: “To serve our customers in need while also helping to ensure the safety of our associates, we’ve changed our logistics, transportation, supply chain, purchasing, and third-party seller processes to prioritize stocking and delivering items that are a higher priority for our customers. This has resulted in some of our delivery promises being longer than usual.”
To help boost service, Amazon also announced they were planning to hire 100,000 full- and part-time workers to help fulfill the delivery orders across America. For employees working through coronavirus in April, the online retailer said it would increase their wages by $2 an hour.
On March 16, Amazon announced: “As the COVID-19 pandemic continues, Amazon and our network of partners are helping communities around the world in a way that very few can—delivering critical supplies directly to the doorsteps of people who need them. Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues. We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year.”
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