Amazon enters the forwarding business with discount prices

Amazon goods distribution center in Brandenburg

The US online mail order company is now getting into the procurement of goods for its marketplace partners.

(Photo: dpa)

Dusseldorf Amazon disputes the business of German freight forwarders and surprisingly launches an aggressively priced freight service from overseas. Upon request, the German subsidiary of Amazon confirmed relevant information from the Handelsblatt from industry circles. As a result, the world’s largest online mail order company is currently building a new business area under the name “Amazon Global Logistics” – AGL for short.

The goal: Amazon wants to increasingly take over the worldwide transport of goods for the independent retailers on its marketplace. To do this, Amazon uses capacity on third-party container ships and in cargo planes that it makes available to importers. Until now, the US group has left the transport of goods to the regional distribution centers almost entirely to the marketplace traders and their forwarders.

As a gateway for new business, Amazon is using an annoyance that has recently ruined the profits of many European importers: the freight rates for containers, which have risen significantly since autumn 2020. “Amazon massively undercuts the prices charged by the forwarders,” reports customs expert and commercial lawyer Francine Dammholz from discussions with clients.

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