Amazon is pausing its little-known shipping service in June, resulting in a bit of confusion as the news trickled out on industry boards on Tuesday, later picked up by the Wall Street Journal.
Amazon Shipping is the marketplace’s foray into competing with shipping carriers – as we reported in February 2019, the pilot program offered in select cities would pick up and deliver orders from participating merchants.
Some sellers who read the initial reports on Tuesday were confused, thinking it might have to do with how sellers sent items to FBA fulfillment centers, or how they purchased shipping labels, or affecting Seller Fulfilled Prime, but that’s not the case! Amazon Shipping has only been offered in a few geographies and sellers who are affected would know it, since “Amazon Shipping” is a substitute for UPS or FedEx.
ASGTG’s Ed Rosenberg appears to have first reported the news.
Amazon confirmed the news, saying it regularly looks at a variety of factors across Amazon to make sure it’s set up in the right way to best serve customers, and saying the decision to pause the Amazon Shipping service in the US came after careful consideration.
But according to the Wall Street Journal, which cited sources, Amazon’s decision to suspend the service was due to the surge in its own customers’ orders. Clearly this is a challenging time for Amazon as well as for its third-party sellers – and customers, as well.