Amazon’s Potential Effect on the Shipping Industry | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Because of these two carriers, the rules of the shipping industry have always been based on comparing these two carriers’ prices and agreements and can, for insightful businesses, create a method to reduce shipping costs overall. However, this very system could change in the near future according to a new Forbes [article](http://www.forbes.com/sites/michaelkanellos/2012/03/26/will-amazon-become-the-next-fedex/). Forbes reports that Amazon, the website retail giant, could not be only going after Apple’s marketshare in the tablet and smart device markets but also could be targeting the shipping industry as well or more specifically, the logistics. Instead of an outright entry into shipping, Amazon has made increasingly larger decisions into logistics system such as its purchase of Kiva, which makes robots for warehouses, earlier this year to continue cutting it’s operational costs. Amazon is also heavily into leveraging third parties onto it’s website for further monetary gains while creating an easy-to-access markteplace. Even further, Amazon is testing pick-up centers instead of using direct shipping. These moves have started to encroach their market into the logistics territory. Although it’s simply one competitor, much like Windows attempts to encroach into the smart phone market space of Apple and Google, Amazon is encroaching on a very steady shipping industry and could have bigger implications in the near future. FedEx, for instance, has had a record 2011 and with a new competitor, those record years will be consolidated amongst more competition and less potential customers. For the consumer, it should start off, at least, as a positive platform simply because it will add an additional competitor into a small market place although again, how far Amazon can be expected to invest into the field has yet to be determined. Reducing shipping costs should become much more common along with discount opportunities and fierce bidding wars between the competitors. Source will continue to help businesses best figure out their shipping contracts in whatever direction the future holds for the shipping industry. With a history of successful savings for shipping companies through [parcel audits](https://www.lojistic.com/freight-audit-and-payment) and [invoice analysis](https://www.lojistic.com/rate-optimization-rfps), our experienced employees continue to stay up-to-date and well-informed about the future of the shipping industry and ways to help businesses out. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. [« Previous Post](/blog/on-the-history-of-logistics-and-supply-chains) [Next Post »](/blog/understanding-shipping-lingo-to-reduce-shipping-costs) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. 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