Ecommerce is a Lot More Than Just Amazon, Says UPS CEO

Jan 24

Ecommerce is a lot more than just Amazon, says UPS CEO David Abney at the Davos 2019 conference. Abney says that their focus is really on helping small and midsize businesses compete with the bigger players by enabling them to offer two-day shipping.

UPS recently introduced a product called Ware2Go which matches businesses with warehouse space in the US and around the world which makes faster delivery possible.

David Abney, CEO of UPS, discussed how UPS is focused on helping small and midsize business compete with big companies in an interview on Fox Business at Davos 2019:

Ecommerce is a Lot More Than Just Amazon

Amazon is a good customer of ours. We work closely together. But people kind of associate Amazon with ecommerce, but ecommerce is a lot more than just Amazon. You have the other big retailers. It’s really those hundreds of thousands of those small and midsize etailers that has allowed us to be the ecommerce vendor of choice. We will continue to do that through our portfolio and through our technology.

This hub is really designed to expedite and to enable these small and midsize businesses to where with today’s technology they can really compete with markets all over the world. If you look back a little while they couldn’t do that. This hub is just part of the strategy. But it’s our focus on small and midsize businesses. It is providing alternatives to these customers to where they can compete with the large ones.

UPS Focused on Helping Small Businesses Compete

More and more of the competition is having to do with being able to deliver to their customers within two days. That’s much easier for larger customers who have distribution centers all over the US and throughout the world. It was almost impossible for small and midsize.

We just introduced a product that’s called Ware2Go. We are a broker between people who have warehouse space all across the country and the world enabling these smaller companies that need to store inventory to compete. It has gotten off to a great start.

Ecommerce is Going to Continue to Increase

I believe ecommerce is going to continue to increase. It’s so convenient for many people using their mobile device to just order what they are interested in getting. That is why we are putting such an emphasis on it.

When we talk about ecommerce let me give you a couple of stats. Of European small and midsize businesses, only five percent export. You would think it should be much higher than that.

However, from the US only one percent of small and midsize businesses export. That’s why trade agreements are so important. They would benefit small and midsize businesses. It’s also why any technology that we can provide them would be helpful to increase their exports. I believe there is a big runway for these smaller retailers.

Retail Up 5.6% – It Doesn’t Sound Like a Slowdown to Me

I think we have to be very careful. I think sometimes people can start to build bad news on top of bad news. I will just give you an example of the peak season that we just finished through December. Retail is being estimated across the market to have increased 5.6 percent. That doesn’t really sound like a slowdown to me. All online retail increased 17 or 18 percent.

So again, healthy numbers. We think the US economy has held up reasonably strong. Internationally there are headwinds of course on trade-related issues. But still when you hear news that there is a slowdown theirs talk of one or two-tenths of a percent. It’s really not the kind of news that some people are taking it much further.

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