January 19, 2024

Categories: Latest News

Is Amazon pushing out Jamaican shipping companies?

Look out, Mailpac, ShipMe, RocketShip and all the million other courier services in Jamaica… because Amazon is coming for your money by delivering straight to our doorsteps in Jamaica!

So I recently came across this blog post from tech guru, Ingrid Riley.  And guess what? Amazon delivered her package straight to her door, right here in Kingston!

I will link to her blog post so you can have a read for yourself but essentially what happened was…

Amazon detected her location in Jamaica and asked if she wanted the stuff delivered straight here.

So this is how it works: You go through the regular Amazon shopping process and when it comes time to check out, the system will prompt you to enter your Jamaican address, then a copy of your Passport or TRN. 

The system even calculates the customs rates. If your cart is over the US$50 threshold, then it will adjust accordingly. There’s also a global delivery charge.

Now according to Riley, she placed her order on December 27 and was told it would take up to twoish weeks to deliver.  Which is about comparable to using a local courier service.

Then a couple of days later, she got a message from DHL that her packages would be delivered on January 4th and 5th, which they were.

Now, it’s important to note that I’m not entirely sure if this is something Amazon is rolling out islandwide, or if they’re in a testing phase to see how it would work. I haven’t seen any big announcements from Amazon or the Government announcing this.  

I also recently made a couple of purchases from Amazon, but I didn’t get the same notification as Ingrid.  Maybe because I was located in Mandeville at the time I placed the order. So maybe it’s only for Kingston – I don’t know.  You tell me.  Have you noticed this option?

It could also be that Amazon is testing this as an option and Riley was just lucky enough to be a part of it.

She also noted in her blog post that not all Amazon products are eligible for shipment to Jamaica.  Additionally, for returns, it will be up to the brand whether or not you return an item for free or for a fee. 

Plus if they do allow returns, you would be responsible for printing your return mailing sticker and taking it to DHL.

All in all, this sounds like a game changer. First of all, this means Amazon is expanding its direct reach into the Caribbean. Who knows, maybe this is the first step, and the next is having actual Amazon warehouses in the Caribbean. 

Additionally, it adds even more competition to Jamaica’s already competitive freight and courier industry. I’m sure you know at least a dozen of them.

Typically, we’d have to sign up with a company such as Mailpac, use their US warehouse address and have our items shipped there. Then wait for the company to have it shipped to Jamaica, then either have it delivered or picked up. 

But Amazon direct delivery cuts out that middleman, and Amazon handles everything directly. 

Now as for cost.  Riley’s two items came up to US$29.98, which is under the US$50 threshold for customs.  I don’t know the weight, which is what the couriers usually use to calculate the transportation cost.  But Riley paid an additional US$32.95 for shipping and handling.  That’s over J$5,000, which seems pricey to me compared to local couriers since the items seemed small, but again, I don’t know the weight of the items.

Now, how cost effective it is will vary from person to person, depending on your budget, how much you spend and how much it used to cost you when you did it with a third party. So that part you’ll have to work out for yourself.

There’s also the time factor. Riley received her packages within a week, which is on the faster side of delivery. Much faster than most local companies.

But this could have been a one-off based on when she ordered and when the shipment left. So timing is also a variable. Still, the fact that direct delivery from Amazon is an option gives users more choices. 

So is this a threat to local courier businesses? It very well could be, especially if their next move is rolling out local warehouses.

According to Riley, Amazon is the number one e-commerce site in Jamaica, followed by ebay and Walmart.  

She also cited data that the Caribbean’s B-2-C e-commerce market is valued at US$5 billion a year, and is growing at a rapid 25% a year!

However, even if local couriers end up losing a large chunk of Amazon’s business, there are still many other sites that we all shop from.  For example, Shein and Temu, are rapidly gaining popularity in Jamaica.  

So the demand for local courier service will not go away anytime soon.

And that’s the bottom line.