As many know, Amazon recently announced the expansion of their brokerage services to include 48 states. Many small brokers have expressed concern that Amazon was going to “take over” their businesses.
Freight Broker Live decided to take a look at the Amazon’s spot rates available to the general public via their website and compare those rates against the spot rates from DAT and Truckstop.
We were not very surprised to learn that Amazon’s spot rates where much higher than the broker to carrier spot rates provided by DAT Rateview and Truckstop, both rates derived from the average rates reported in the previous 7-days.
Amazon likely includes profit in these rates, so we decided to add a profit to our rates.We added our average broker sell rate which averages the DAT and Truckstop rates and then multiplies that number by 16% which is the average profit a freight broker takes on each load, according to the Transportation Intermediaries Association.
Freight Broker Live’s Broker Average was the cheaper option for nearly every lane, excluding the Chicago to Dallas lane, which our average rate (they amount we would bill the customer) was $145.21 higher than the Amazon instant rate. The South Florida to Southern California rate provided by Freight Broker Live was a whopping $3221.39 less than the posted Amazon rate for this lane, and our rate includes a 16% profit margin.
|Amazon||DAT||Truckstop||Average plus 16%||Difference|
|NC to CA||$5,843.54||$2,300.00||$2,714.00||$2,734.24||$3,109.30|
|South Florida to Northern VA||$2,542.76||$1,562.00||$1,599.00||$1,817.84||$724.92|
|Chicago to Dallas||$1,627.67||$1,578.00||$1,218.00||$1,772.88||-$145.21|
|South Florida to Southern CA||$6,398.39||$2,793.00||$2,400.00||$3,177.00||$3,221.39|
|Southern CA to South Florida||$6,397.00||$4,399.00||$4,198.00||$5,070.68||$1,326.32|
|Dallas to Chicago||$1,619.53||$1,049.00||$1,028.00||$1,213.48||$406.05|