For UPS, E-Commerce Brings Big Business and Big Problems
"And after that, you don’t feel the same towards the other person any longer."
When United Parcel Service Inc. UPS +0.33% Chief Executive David Abney bought his first book from Amazon.com Inc. AMZN -0.24% about 15 years ago, e-commerce seemed no more complicated than ordering from a catalog. "Pretty basic," he says.
"No," he said, "you don’t feel the same."
Online sales have mushroomed since then into a huge business for the package-delivery company----and a big problem.
There did not seem to be anything more to say. The wind plastered their thin overalls against their bodies. Almost at once it became embarrassing to sit there in silence: besides, it was too cold to keep still. She said something about catching her Tube and stood up to go.
Because of the ubiquity of free shipping, fierce competition from other delivery services and Amazon's power to drive down shipping costs as it gets even more enormous, UPS's average revenue on each Internet-related package it handles is dropping.
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