In 2016, Amazon announced it was building its own logistics and shipping business in an effort to put the brakes on rising delivery costs. The overall goal was to deliver Amazon packages as well other packages from retailers and consumers in order to cut delivery costs in half. By 2021, Amazon was shipping 72 percent of its own packages as well as packages for Walmart and eBay. Read more about the effort

(https://openstax.org/r/amazondeliveryfedex).

With this new shipping venture in mind, answer the following questions:

a. How is Amazon’s decision to enter the logistics and shipping industry a move toward improving customer loyalty and equity?

b. How will Amazon’s new delivery service benefit Amazon?

c. How do you predict Amazon’s rivals in this distribution channel have responded?