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Molson_Hart's profile
Molson Hart
Molson Hart
Molson Hart
@Molson_Hart

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Molson Hart

@Molson_Hart

CEO at http://amazon.com/viahart . CEO at http://edisonlf.com . I tweet about business, e-commerce, supply chain, health, law, & infrastructure

Austin, TX
Joined July 2015

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    1. Molson Hart‏ @Molson_Hart Jul 6
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      Replying to @jmanooch

      It is called "Amazon Shipping" which...makes it very difficult to search on Google. https://www.digitalcommerce360.com/2020/05/26/amazon-is-the-fourth%E2%80%91largest-us-delivery-service-and-growing-fast/ …

      1 reply 0 retweets 0 likes
    2. John Manoochehri‏ @jmanooch Jul 6
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      Replying to @Molson_Hart

      You mean Shipping with Amazon (SWA). Is this live? I can find no sign of it on Amazon's website. Thanks for real links; all the web material is puff/pre-launch from 18,19. It's my view this will never launch in the way you describe, ie analogous to AWS, costs don't pencil.

      1 reply 0 retweets 0 likes
    3. Molson Hart‏ @Molson_Hart Jul 6
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      Replying to @jmanooch

      It's a beta program. It's my understanding that they suspended it in April and then restarted it again when demand got more manageable. I disagree with you about costs not penciling.

      1 reply 0 retweets 0 likes
    4. John Manoochehri‏ @jmanooch Jul 6
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      Replying to @Molson_Hart

      What I can see launch is smth that pulls partners closer to other AMZ functions eg markeplace, FBA, AWS even, and yes the new service-as-a-service etc. The thesis is good, just last mile logistics is anomaly. Why? - logistics needs to be cheaper - but gets more expensive.

      1 reply 0 retweets 0 likes
    5. Molson Hart‏ @Molson_Hart Jul 6
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      Replying to @jmanooch

      It doesn't get more expensive. It gets cheaper as you increase packages in system and density.

      1 reply 0 retweets 1 like
    6. John Manoochehri‏ @jmanooch Jul 6
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      Replying to @Molson_Hart

      Only to a point. Separately, Amazon wants quality logistics as /differentiator/ for Prime, mktplace and FBA partners. So strategically it will eat the costs, to maintain that advantage, which it has done so far. Would love to see cost calcs if you have any you can point to!

      1 reply 0 retweets 0 likes
    7. John Manoochehri‏ @jmanooch Jul 6
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      Replying to @jmanooch @Molson_Hart

      I'm not saying there are no efficiencies in last mile logistics, just not that many, and new costs are going to arise. Right now, Amazon can beat the competitors, but when it is /competiting with itself/, we'll see what happens to logistics margins.

      1 reply 0 retweets 0 likes
    8. Molson Hart‏ @Molson_Hart Jul 6
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      Replying to @jmanooch

      I don't have cost calcs, just a sense of it in my mind. What new costs are added by driving more packages through the same pre-existing driver route?

      1 reply 0 retweets 0 likes
    9. John Manoochehri‏ @jmanooch Jul 6
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      Replying to @Molson_Hart

      Well, your q is on track to answer itself! At some point the vans fill up, so more vans: this is linear cost scaling, just chunked. And other costs arise eg city and real estate charges for vehicle and package volumes etc etc. Anyway, all good. Our analysis is SWA != AWS.

      1 reply 0 retweets 0 likes
    10. John Manoochehri‏ @jmanooch Jul 6
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      Replying to @jmanooch @Molson_Hart

      Btw, can def see boutique logistics as a feature, sure. 10 USD a pop for fast flower delivery etc etc. If that's what SWA is, ok fine, forget what I wrote, it's just it's not like AWS (where they give away scale). Lots of folks agree with your view, just we don't! All good.

      1 reply 0 retweets 0 likes
      Molson Hart‏ @Molson_Hart Jul 6
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      Replying to @jmanooch

      Get a bigger van. Cost not much more expensive and you're making more money.

      8:29 AM - 6 Jul 2020
      1 reply 0 retweets 0 likes
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        1. John Manoochehri‏ @jmanooch Jul 6
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          Replying to @Molson_Hart

          Yeah as I say there are some efficiencies. But this line of thinking and planning runs out of ... road! literally! ... quite fast. Much larger vehicles can't be parked at all, and so on. The efficiencies will run out fast, and the new costs will proliferate. But let's see!

          1 reply 0 retweets 0 likes
        2. John Manoochehri‏ @jmanooch Jul 6
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          Replying to @jmanooch @Molson_Hart

          I'll end on this: my virtual handshake bet (you don't have to take it :-)) is that in two years time, if SWA exists at all, it is a boutique thing with a v diff pricing and use model than Prime/FBA kind of deals. Also: the DTC folks peeling away from mktplace won't use Amazon.

          1 reply 0 retweets 0 likes
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