Amazon overshadows many industries, as we saw last month in the retail sector. Now, consumer shipping, long the beneficiary of all those Amazon orders, is bracing for a future in which Amazon makes its own deliveries.
The Wall Street Journal last month reported that Amazon is planning to launch “Shipping with Amazon,” a delivery service for businesses shipping to consumers. Of course it would take years for Amazon to build a parcel delivery network at the scale of United Parcel Service (UPS) and FedEx, but even the specter of Amazon should be enough for the established players in the shipping industry to redouble their efforts in serving customers.
Where do they stand right now?
Customer satisfaction with consumer shipping was stable at an ACSI score of 81 (out of 100), but UPS jumped into the lead at 82, growing 1 percent over 2017. FedEx fell 1 percent to 81. The U.S. Postal Service’s Express and Priority Mail business climbed 1 percent, but remains a distant third place at 76.
Customers gave top marks to shippers for delivering packages in good condition (88) and making it easy to track shipments (86). Customers who visited a post office or a UPS or FedEx store feel that service staff members were slightly less courteous and helpful this year (85), but all other customer experience benchmarks remained the same.
It might seem easy to write off the U.S. Postal Service’s Express and Priority Mail business, which remains well behind the category’s leaders in terms of overall customer satisfaction. But it’s actually tied with FedEx in customer loyalty and has a lower percentage of customer complaints. UPS had the best scores in the industry for each of those measures.
With Amazon dipping its toes in the shipping space and, according to the Wall Street Journal, threatening to undercut UPS and FedEx pricing, the shipping giants can only rely on their established infrastructure so long. Investing in customer service could continue to set these companies apart.