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Supply Chain News: Amazon will Once again be Largest Parcel Shipping Company in 2023


13.5% Rise versus Flat Volumes for UPS, as Amazon Appears to be Increasing Third-Party Shipping Numbers

Nov. 28, 2023

It was just a few weeks ago when Amazon topped the annual list of the largest logistics providers by Transport Topics magazine, based on 2022 revenue, in the first year Amazon was included in the process.

Supply Chain Digest Says...


As readers may remember, FedEx did not renew its contracts with Amazon in mid-2019. UPS still does business with Amazon, with about 11% of UPS revenue still coming from Amazon.

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The analysis found Amazon had net logistics revenue of $117.3 billion last year, bumping out last year’s number 1 UPS, which dropped to second place with about $100 in sales. To be clear, Amazon’s revenue is only counted for is third-party services. It does not include fulfillment and shipping costs for the millions of items Amazon stocks and resells on its own. (See Is Amazon the World’s Largest Logistics Company?).

This week, news that Amazon will again this year exceed both UPS and FedEx in terms of parcels delivered in the US.

The Wall Street Journal report says that Amazon first exceeded UPS in US parcel volume in 2022 and before that FedEx in 2020, with both the gaps set to grow in 2023.

The Journal report was based in part on Amazon data made by unnamed sources close to the situation.

Before Black Friday and Cyber Monday, Amazon had delivered more than 4.8 billion parcels in the US alone, The Journal reported.

Internal Amazon projections seen be the Journal reportedly said the company is expecting to deliver about 5.9 billion packages by the end of this year. If accurate, that would be about13.5% above last year, when Amazon shipped a total of 5.2 billion packages.

Compare that to UPS, which earlier stated that its domestic deliveries are unlikely to exceed last year’s 5.3 billion. As of September, UPS had handled around 3.4 billion parcels domestically, the Journal reported.


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FedEx’s Express and Ground parcel shipments were roughly 3.05 billion for its fiscal year ended May 31 of 2023.

The largest parcel carrier by volume is actually the US Postal Service, whose numbers include performing last mile delivery services for Amazon, UPS and FedEx. For UPS and FedEx, that results in a type of double counting, with both those carriers and the USPS taking credit in their volume numbers – maybe they should all get just a half of a delivery, the way the NFL accounts for quarterback sacks when more than one defenseman is involved.

Amazon, by contrast, only counts deliveries where it handles the total process.

As readers may remember, FedEx did not renew its contracts with Amazon in mid-2019. UPS still does business with Amazon, with about 11% of UPS revenue still coming from Amazon.

The 13.5% growth seen in Amazon-handled deliveries this year is far above the revenue growth in its on-line stores, implying Amazon’s increase in volumes is coming in part from shipping for others, such as its Shipping with Amazon program for its Marketplace sellers, who sell via but manage their own fulfillment.

Any thoughts on these parcel numbers? Let us know your thoughts at the Feedback section below.




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