Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Amazon Targets Parcel Fees with New Delivery Network

Amazon’s new robot delivery service pilot program may be generating buzz, but the e-commerce giant doing something else that could have more far-reaching implications for last-mile delivery: Introducing a new seven-day-a-week delivery network that promises its shippers fewer extra fees.

Deborah Lockridge
Deborah LockridgeEditor and Associate Publisher
Read Deborah's Posts
January 24, 2019
Amazon Targets Parcel Fees with New Delivery Network

Amazon appears to be working to gain more control over how its packages are delivered.

Photo courtesy Amazon

3 min to read


Amazon’s new robot delivery service pilot program may be generating buzz, but the e-commerce giant doing something else that could have more far-reaching implications for last-mile delivery: Introducing a new seven-day-a-week delivery network that promises its shippers fewer extra fees.

According to the Wall Street Journal, Amazon intends to get rid of fees that traditional parcel carriers use as revenue producers, including residential surcharges, fuel surcharges, and “extra charges to deliver packages to homes during the peak holiday season or on weekends.”

Ad Loading...

The WSJ points out that Amazon recently expanded its home-delivery service, Amazon Shipping, beyond test markets in London and Los Angeles. The online retailer is offering to pick up shipments from merchants’ warehouses and deliver them directly to shoppers.

“To woo shippers, the retailer is promising to forgo many fees that the traditional carriers use to pad their revenue, such as extra charges to deliver packages to homes, during the peak holiday season or on weekends, according to an email sent last week to shippers in the New York area and reviewed by The Wall Street Journal.”

The WSJ points out that while large parcel carriers use the fees to help meet the extra costs involved with e-commerce packages and residential deliveries, Amazon’s service is designed from the get-go for this type of operation, so there’s no need for such surcharges.

Ad Loading...

It appears to be part of Amazon’s larger strategy to gain more control. Amazon also is building a fleet of delivery vans using contract drivers. It’s building a fleet of Boing 767 cargo planes and ramping up airport hub operations, including building a $1.5 billion hub at the Cincinnati/Northern Kentucky International airport.

“Who could blame Amazon for seeking more control of what they don’t have control over?” writes Shep Hyken, a customer-service expert, at Forbes.com. “Many years ago Jeff Bezos, the founder and CEO of Amazon, argued they didn’t need a phone number for customers to call if there were problems. His famous quote was, ‘The best customer service is if the customer doesn't need to call you, doesn't need to talk to you. It just works.’ That’s fine until it doesn’t work. Once that package leaves the Amazon warehouse, they lose total control. … Amazon’s move into airplanes, hubs and delivery vans is a way to provide a better customer experience.”

However, Gordon Glazer, senior consultant for San Diego-based parcel consultancy Shipware, called the move “another Amazon publicity stunt like the idea of drones replacing uniformed drivers,” according to Logistics Management. “This will keep the rest of industry scrambling to deal with the Amazon effect.

“More likely, it will be a selected program for hand picked vendors to further enhance their Shipper Fulfilled Prime offerings,” Glazer predicted. “Even limiting services to residential deliveries, it will take years and billions of dollars to build out a national distribution network for non-Amazon packages.”

More Fleet Management

Container ship at the Port of Long Beach.

July Imports Poised to Set Container Record

The National Retail Federation projects July container imports will surpass the pandemic-era record as shippers frontload freight ahead of expected August tariff increases.

Read More →
Nine headshots of men and women with Truck Fleet Innovators logo and the word "Finalists"
Fleet Managementby Deborah LockridgeJuly 10, 2026

HDT Announces 2026 Truck Fleet Innovator Finalists

From AI and fleet electrification to safety, operations, and leadership, these HDT Truck Fleet Innovator finalists are changing how trucking gets done.

Read More →
DAT trucking conditions June 2026.

Van Spot Rates Top Contract Rates for First Time Since 2022

There’s more good economic news for the North American trucking industry according to the latest Truckload Volume Index report from DAT.

Read More →
Ad Loading...
Carrier Transicold Fleet Refresh program.

Carrier Transicold Extends Refrigerated Trailer Life

Fleet Refresh enables refrigerated fleets to replace aging transport refrigeration units instead of entire trailers, while adding Lynx Fleet telematics and BluEdge service coverage.

Read More →
FTR TCI May 2026.

FTR Says Freight Rates Surged in May

FTR's Trucking Conditions Index surged to a record high in May, the analytics firm reports.

Read More →
Panel discussion

Meet HDT's Truck Fleet Innovators at Heavy Duty Trucking Exchange

Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for HDTX, September 23-25.

Read More →
Ad Loading...
thermo king heavy duty trucking
SponsoredJuly 1, 2026

Enhance Fleet Performance with High-Efficiency Auxiliary Power Units

Drive sustainable cost savings while increasing driver comfort during short- and long-haul logistics operations.

Read More →
Cover of a Dayton Parts guide titled "Strategic Parts Purchasing: A Process Checklist." The cover highlights "5 Steps to Revamp Parts Procurement, Cut Costs and Increase Uptime" and features a warehouse aisle with shelving full of automotive parts, where a worker is organizing heavy-duty suspension components on a pallet.
SponsoredJune 30, 2026

Is Your Parts Procurement Process Reactive or Proactive?

Ready to revamp your parts procurement process? Learn how now with “Strategic Parts Purchasing: A Process Checklist”

Read More →
Fleet Managementby StaffJune 24, 2026

What Trucking Events are Happening in 2026?

Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.

Read More →
Ad Loading...
LIne graph showing spot rates and driver availability over time
Fleet Managementby Deborah LockridgeJune 22, 2026

Truckload Rates Keep Rising as Tight Capacity Fuels Freight Market Recovery

Spot and contract rates continued climbing in May and June, not because freight demand is surging, but because fewer trucks and drivers are available.

Read More →