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Monday, 02 August 2021 22:21

The Rise of Amazon and How It Impacts the Collision Repair Industry

Written by David Roberts and Raul Salinas, Focus Advisors Automotive
The Rise of Amazon and How It Impacts the Collision Repair Industry Amazon

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How much attention do you pay to those ever-present gray vans emblazoned with the Amazon logo? Did you ever stop to think who owns them? And who repairs them?

The prevalence of smartphones and quick internet connections has completely and permanently changed the consumer landscape.

 

Among these changes, Amazon has risen to become a firmly established and dominant player in nearly every industry. The e-commerce conglomerate and their promise of two-day deliveries has captured the attention and wallets of an estimated 147 million Prime members throughout the U.S.

 

With so many customers to satisfy, Amazon has had to confront unparalleled logistical challenges. The pandemic-fueled online shopping sprees of American consumers following nationwide mandatory stay-at-home orders showed just how reliant we have become on modern day technological solutions to our problems.


The perpetually increasing demand for delivered products has led Amazon to reduce its dependence on traditional carriers like USPS, UPS and FedEx. In fact, researchers approximate that in 2020, Amazon delivered 2.5 billion more of its own packages. This represents an increase of more than 100% from 2.3 billion packages delivered through Amazon in 2019.

 

Its approach to generating this delivery supply primarily relies on small businesses and independent contractors to do the work with assistance provided by the advanced software and capabilities of Amazon Logistics (AMZL).


Delivery Service Partners, or DSPs, usually operate a few dozen commercial vans and are paid per route completed. The owners are classic small business entrepreneurs, meeting the needs of their clients by staying focused on speed, efficiency, and customer service.

 

The commercial vans of choice for DSPs are usually from the make of Amazon partners, e.g., the Mercedes-Benz Sprinter, Ford Transit and Dodge Promaster. DSPs are permitted to...


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