As the International Brotherhood of the Teamsters union sits at the bargaining table with UPS executives to discuss the demands of employees, retail businesses across the country await the news of either an agreement or the initiation of a strike. If negotiations stall and a strike ensues, it will represent the largest strike in U.S. history. A UPS strike would disrupt supply chains nationwide, delaying packages to consumers and businesses alike.
A Prime Opportunity for Amazon
Most businesses stand to feel the sting of a UPS strike. There is, however, one major exception. Fresh out of Prime Day sales success, Amazon is preparing massive shipments for delivery. In two weeks, the company’s contract with UPS expires. Notably, UPS only manages less than 40 percent of Amazon deliveries.
Contract negotiations between the Teamsters and UPS are reportedly expected to take a few more weeks. For Amazon, this provides time to secure a different delivery partner and perhaps avoid any type of financial pain related to delivery delays.
Prime Day Pain Points
While Amazon avoids the sting of the strike, it feels a different pain. Prime Day sales correlate to Prime Day scams. Each year, customers fall victim to phishing schemes and other online predatory scams. An online article via Fox News advised consumers to be wary of any offer that requires them to use an alternate form of payment–like gift cards. In addition, the story warned of ‘post-Prime Day’ offers. Prime Day sales only remained active on July 11 and July 12 this year.
For those who scored great deals on Prime Day, pay attention to delivery updates. Although UPS delivers only a portion of Amazon packages, a strike could delay arrival expectations.
Strategic Resource Group is the lead retail and brand CPG consulting firm throughout the United States and the globe. With more than three decades of experience, our team strategically collaborates with top retail chains, wholesalers, suppliers, and investment firms. Our retail industry experts are highly skilled at illuminating retail trends, identifying opportunities to increase consumption, and growing retail sales.
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