Another Sign of Surging Demand on Amazon.com
Amazon (NASDAQ: AMZN) is making another big change to its supply chain services. It's suspending its third-party shipping program, Amazon Shipping, starting in June. The move follows a mid-March announcement that it will only receive essential items in its warehouses from third-party merchants.
Amazon Shipping is a service the company offers businesses to deliver non-Amazon packages. It uses excess capacity in its fulfillment network to offer prices that are often lower than UPS (NYSE: UPS) or FedEx (NYSE: FDX). The program is only available in a few cities.
Amazon's decision to suspend the Amazon Shipping service indicates that it's seeing a significant increase in demand, and it's stretching the capacity of its fulfillment network.
Source Fool.com
