In January it was revealed that Amazon's China arm had registered in the US to operate as an ocean freight forwarder. A move that started speculations about Amazon planning to launch a global shipping and logistics operation competing directly with UPS and FedEx.
Amazon has denied those rumors but now Bloomberg says it has seen documents showing that the web retailer plans to do just that. According to Bloomberg Amazon is planning a global expansion of the company’s Fulfillment By Amazon service, which provides storage, packing and shipping for independent merchants who sell products on Amazon.
According to the internal documents from 2013 Amazon plans to build a global delivery network that controls the flow of goods from factories in China and India to customer doorsteps in Atlanta, New York and London.
In a Position to Take on Alibaba
The project, internally called Dragon Boat, would culminate with the launch of a new business called ”Global Supply Chain by Amazon” as soon as this year.
And it’s not just the physical shipping Amazon will take care of. They will also handle all the import paperwork for customs clearance that retailers normally have to complete to take care of customs requirements.
In addition to going heads up with FedEx and UPS Dragon Boat will also place Amazon in a position to take on Alibaba, the Chinese e-commerce powerhouse. The companies are increasingly competing against one another internationally.