Amazon doesn't need to own the last mile. They just need to ensure whoever does meets their standards. USPS has rules for what size packages they will deliver. Amazon either needs to get USPS to follow their rules and deliver that package, or they need to read the rules and ship via someone who can deliver. (I don't know the rules or package in question so I cannot say who is at fault). Of course Amazon might be too small a player in the eyes of USPS, but there are other choices for delivery if USPS doesn't meet their needs.

Amazon does own a last mile delivery company, Amazon Logistics (AMZL). For deliveries to my house (Seattle area), AMZL was so bad that after many complaints, Amazon offered to block/disable that delivery method for my account.

Owning the supply chain end to end and paying employees enough to maintain a quality of life which supports good customer service

About 50% of my Amazon packages are delivered by Amazon at this point (Boise, ID area).

Yeah, I would say 90% of mine are (Los Angeles)

They own it in a handful of cities: https://www.amazon.com/AmazonFresh

Amazon Fresh is not full vertical integration, merely seems like Costco's ordering program or similar.

Amazon Fresh used to be quite popular in Seattle a half decade ago, but I barely see their empty containers anymore. I think Amazon saw their volume falling with Amazon Fresh and was threatened by their vendors and wholesalers with higher prices, thus purchasing Whole Foods to attempt to stabilize their cost on goods.

> Amazon Fresh used to be quite popular in Seattle a half decade ago, but I barely see their empty containers anymore.

Amazon has been cannibalizing Fresh by including (a smaller selection of) grocery items in Prime Now, which (unlike Fresh, which is a premium upgrade) is included in the base cost of Prime.

Amazon Fresh had its own (timely and reliable) delivery network and reusable plastic storage crates (often insulated). It seemed like a more eco-friendly & premium service compared to Amazon Prime.

That's a tough one - considering the blurry definition of "grocery item", they'll end up with a lot of frustrated customers who find they need a premium upgrade for the privilege of buying from Amazon.

For example, you can buy a Philips electric razor through Amazon Prime, but refill cartridges are only available through Amazon Fresh. The result: I made my first online order with Walmart and will probably make many more in the future.