FedEx dropped as much as 7.4% during trading, its steepest fall in over a year, while UPS followed, sliding up to 8.9%. 

Forward Air and GXO Logistics both recorded double-digit declines, while Old Dominion Freight Line fell more than 5%.

The reaction came within hours after Amazon announced that it would open its logistics network to businesses beyond its marketplace.

With such a wide scope, the company plans to offer freight, warehousing, fulfilment and parcel delivery as a single service to external clients.

Amazon has spent years building warehouses, delivery stations and air capacity to speed up its own orders. Now, it wants to use spare capacity to move goods for other companies, even when those goods have nothing to do with its retail platform.

In practical terms, this puts Amazon in direct competition with long-established carriers. It also stretches into areas handled by freight brokers, warehouse operators and trucking firms. 

The market reaction shows how seriously investors are taking that risk.

Amazon said customers could range from industrial groups like 3M to retailers such as Lands’ End, showing it is not targeting a niche. Rather, it is going after the expansive logistics market.

Morgan Stanley analyst Ravi Shanker wrote, “The announcement could be a watershed moment for North American freight transportation companies.”

Others see a longer build-up behind this move. Nate Skiver, founder of LPF Spend Management, said, “Amazon has been heading in this direction for several years, offering portions of its supply chain capabilities as services to non-Amazon sellers.” 

He added, “Bringing its end-to-end capabilities to market in a unified service offering stands to disrupt the US logistics market.”

The issue is not just about parcel delivery, as air freight firms, trucking companies and even rail and ocean shipping operators could feel the pressure if Amazon scales quickly. 

Its advantage lies in adequate management, as it owns large parts of the network, from storage to last-mile delivery.

Competitors are facing a company with deep pockets, existing infrastructure and a track record of cutting delivery times. Investors responded fast, and the sell-off reveals that.

However, Amazon still needs to prove it can run this as a standalone service at scale.

The program included Morolayo Igeleke, country marketing manager at UPS; Isaac Akanni, customer growth manager for Africa at Infobip; Omolara Olarerin, founder of PocketFood; and Success Ajilore, business analyst and founder of the Success Transformation Network. 

The session, which was moderated by Imoh Anselem, IT product manager and customer success specialist, highlighted methods for customer engagement, cost management and leveraging technology, among other topics to enhance business sales.

Understanding Customer Needs and Managing Costs

Morolayo Igeleke stressed the importance of understanding customer needs while balancing discounts and profitability. He noted flexible payment options as a strategy, explaining, “To help you sell during this season while maintaining your discount and profit margin, consider offering customers instalment payment options. Although it carries some risk, allowing customers to pay over time—say, in two or three instalments—could make a big difference. Many SMEs can benefit from this approach. You could even offer a 10% discount as an incentive, which would be appreciated and help stimulate their payment structure.”

This approach, he stated, allows businesses to attend to customer affordability without sacrificing margins.

For customers focused on affordability, Igeleke gave the option of alternative products rather than discounts. “Why don’t we look at a cheaper alternative product? That way, your customers will run to you better,” he said, adding that UPS had introduced a more economical shipping service for price-sensitive Nigerian clients.

Boosting Value with Product Bundling

Isaac Akanni highlighted the effectiveness of product bundling during peak seasons. He gave an example: “What can I add to these shoes just for this December period to increase my sales?”

He also illustrated how Infobip customises tools like SMS and WhatsApp chatbots to enhance product value. “At the end of the day, you’re not just selling your product; you’re providing a service,” he added.

Personalised Marketing as a Key Driver

Omolara Olarerin, founder of PocketFood, stressed the value of personalised marketing. “You can’t really go far without marketing,” she stated, advising business owners to utilise Instagram, Facebook, and WhatsApp ads and to build community connections. 

“As a business owner, you should be able to have a community where you can share your product and get your feedback.”

Olarerin further highlighted the power of personal branding, noting that customers “always trust the business that has a face to it.”

Data-Driven Decision-Making for Future Success

Success Ajilore of the Success Transformation Network emphasised the importance of data and feedback in refining sales strategies. 

“You cannot succeed in the future without understanding your past. We learn from hindsight,” she stated, urging businesses to gather feedback using tools like Google Forms and SurveyMonkey to measure satisfaction.

Ajilore further advised on tracking customer ratings to identify popular products and improve marketing and inventory decisions. “Encourage customer reviews and ratings… You can start a strategy, maybe invest more in what satisfies the customer,” she advised.

Ajilore explained that effective business strategy requires year-round planning, ideally preparing for the next year to leverage seasonal opportunities. 

Analysing customer and sales data helps tailor marketing and services to meet customer needs. Pricing should cover all expenses, including promotions, to avoid profit loss during high-demand seasons. 

Utilising Technology to Drive Efficiency

In discussing operational cost savings, Igeleke pointed to the role of technology. “For example, advertising—though often expensive—can become more affordable with social media and AI, allowing you to reach audiences with minimal spending.”

He explained how UPS leverages AI-driven tools, including robots and forklifts, to reduce labour costs and simplify logistics.

Competing Through Disruptive Innovation

Akanni talked about the idea of “disruptive innovation” by Clayton Christensen, which suggests that smaller businesses can find opportunities by focusing on areas big companies overlook. 

He pointed out that large companies often miss certain needs or types of customers—not because they don’t want to, but because it’s hard for them to serve everyone. 

He encouraged small businesses to pay attention to these overlooked areas by listening to customer feedback and checking online reviews to help them grow strategically.

Handling Seasonal Demand Peaks

Addressing the challenges of seasonal demand surges, Igeleke shared UPS’s experience in managing increased workloads during peak periods. “We had to hire more contract staff to help us sort things out, it’s a good problem to have,” he commented, emphasising the importance of strategic staffing during high-demand periods.

Olarerin further explained that seasonal pricing strategies should adapt to the industry and profit margins. For low-margin industries, buying in bulk to secure lower supplier prices can allow discounts without cutting profits. 

“Communicating with suppliers for discounts is essential, especially in high-demand seasons; if they don’t offer competitive rates, consider switching suppliers.

“Businesses should protect their profit margins by adjusting based on sales volume—higher sales can offset lower per-item profits. Genuine discounts build credibility, whereas “fake” discounts can backfire.”

Seasonal discounts work best on high-demand products, as these can maintain profitability through increased sales. Conversely, discounting less popular items may not yield sufficient sales and could risk profitability.

Incentivising Positive Employee Behaviour

The speakers recommended incentivising employee behaviour to improve customer satisfaction. “If employees get no customer complaints, they might earn points or a bonus. Or if they get a customer to return and spend a certain amount in December, they could earn a reward,” Akanni explained. 

He shared how Infobip has successfully used this approach to motivate employees by tracking and rewarding good customer service, incentivising behaviour tracking.

“Find out the things you want your staff to do, what are the behaviours you want them to emulate, then find a way to incentivise that behaviour,” he concluded, pointing to the benefits of a results-driven reward system.

The session wrapped up with each expert reiterating the importance of customer-centric approaches, technology, and strategic marketing to enhance seasonal sales success.

What key factors should a business consider when planning a seasonal sales campaign to maximize profitability?

How do you determine which seasons or events are most relevant for your business?

How important is data in planning for seasonal sales, and what types of data should businesses be focusing on to make informed decisions?

What are some effective pricing and discount strategies that can attract customers without eroding profit margins?

What are some tips for managing inventory and supply chain logistics to meet seasonal demand spikes?

These questions and more shall be answered during Techeconomy Business Series this morning [10:00am WAT].

Speakers:

Morolayo Igeleke, Country Marketing Manager, UPS

Isaac Akanni, Customer Growth Manager – Africa, Infobip

Omolara Olarerin, Founder of PocketFood

Success Ajilore, Business Analyst and Founder, Success Transformation Network, Nigeria

How to join:

Use the ZOOM Link HERE.

Imoh Anselem, IT Product Manager & Customer Success Specialist